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Pay-TV subs grew 30% in Brazil last year

Brazil is outpacing its fellow BRIC countries (Russia, India and China) in its growth rate for pay-TV subscriptions, according to a new report from US firm Parks Associates.

The research firm estimates that the number of pay-TV subscriptions in Brazil increased by more than 30% last year, while its household discretionary spending for movies, music and games is nearly double that of China. The number of broadband subscriptions in Brazil also grew by 20% last year, according to the report.

“While digital home opportunities are available in several emerging markets, the growth in Brazil is phenomenal,” said Brett Sappington, Director of Research at Parks Associates. “The country is seeing the emergence of new broadband homes that are able to receive these products and services for the first time. Netflix, Samsung, and other major companies are moving quickly to capitalise.”

Continued economic improvement in the country has increased demand for CE, and over one-quarter of Brazilian broadband households pay for an online video streaming service. Netflix recently entered this market, and LG Electronics plans to roll out its Google TV in Brazil in the near future.

However, there is already intense competition from incumbents’ VOD offerings, according to Parks. Operators, including Oi (Brasil Telecom), Net (Net Serviços de Comunicaçao), Telefónica Brazil, and GVT, have increased their investments in infrastructure, expanding the availability and scope of services available to consumers.

The research firms adds however that Latin America’s biggest single economy does have many of the problems associated with a growing nation, including regulation, poverty, and piracy. A 100% tax on imported consumer technology products inhibits legitimate retail sales and fosters an active “grey market” for CE.

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