OTT drives Mexican pay-video market | OTT | News | Rapid TV News
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With 7.7 million subscriptions by December 2017, over-the-top (OTT) players are gaining ground in Mexico, accounting for over a quarter of the pay-video market according to analysis published by the Competitive Intelligence Unit (CIU).

ott mexico 15 may 2018The survey revealed that OTT subscriptions have increased by 15.6% during 2017, driving the whole video market to grow by 3.3%.

While OTT seems to be growing rapidly as a mainstream entertainment option among Mexicans, traditional pay-TV platforms maintained a more stable, mature position. Satellite, direct-to-home (DTH) subscriptions felt by 4.2%, standing at 10.7 million households, and cable TV grew by 3% to reach nine million homes.

“The market is growing both in terms of incomes and subscriptions, which can be explained through the users’ preference for certain video contents, especially those streamed by video-on-demand and multi-device platforms,” pointed out CIU analyst, Radamés Camargo.

However, the analysis also highlighted that OTT players are not as strong as traditional pay-TV players when it comes to revenue generation. While OTT services enjoy a 28.2% share of the market in terms of subscribers, they only account for a 12.7% of revenues compared with 28.4% for satellite TV and 58.9% for cable.
“The monthly subscription for an OTT services is cheaper than the basic satellite packages,” added Camargo. “On average, an OTT subscription costs $7.22 per month, while a basic pay-TV package costs $10.42.”

According to the analyst, pay-TV players are also trying to win over the consumers by deploying convergent offerings and launching their own or third-party video-on-demand and multi-platform services.