LATAM pay-TV set for recovery in 2020 | Pay-TV | News | Rapid TV News
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Even though the general macro effects of region’s 2017 recession are waning, Latin America’s pay-TV market is still feeling the pinch but this is set to turn over the next five years says a report from Digital TV Research.

latam pay 25March2019Even though there are grounds for optimism, the report suggests that only about five million more pay-TV subscribers are expected between 2018 and 2024 – bringing the total to 77 million. The analyst added that pay-TV penetration will not likely climb beyond the current 44% of TV households.

The report found that Brazil lost 2 million pay-TV subscribers between 2014 and 2018 and its peak year of 2014 will not be bettered until 2024. Mexico has more pay-TV subscribers than Brazil despite having half as many TV households. However, Mexico has lost subscribers since its peak year of 2016.

Two operators — América Móvil and DirecTV/Sky — dominate Latin American pay-TV market, accounting for nearly half of the region’s pay TV subscribers by end-2018. América Móvil had 13.69 million pay-TV subscribers, mostly under its Claro brand by the end of 2018. This was down by 890,000 since the end of 2016. Digital TV Research predicts that the company will lose subscribers again in 2019 before returning to growth from 2020. However, its 2024 total is projected to be lower than in 2016.

Digital TV Research also noted that DirecTV/Sky had 21.43 million subscribers by end-2018 – or just under 30% of the region’s total. The company has increased its base due mainly to the popularity of its prepaid offer. Slow growth is set to push its count to 22.18 million subs by 2024.

On the back of the slowly growing audiences, the report found pay-TV revenues in Latin America will fall by 2.1% (or $381 million) between 2018 and 2024 to $17.82 billion.

Brazil will remain the top country for pay-TV revenues in 2014, projected to generate $5.57 billion, followed by Mexico with $3.04 billion and Argentina $3.03 billion.
However, this would mean Brazil’s 2024 total would be lower than 2018 and its peak year of 2014.