OTT TV and video revenues in Latin America will reach $2.91 billion in 2020; up from only $37 million in 2010 and the $1.13 billion expected in 2015, according to a new report from Digital TV Research.
From the $2,126 million in revenues to be added between 2014 and 2020, Brazil will contribute $938 million and Mexico $437 million.
“SVOD will remain the region’s largest OTT revenue source; contributing $1,745 million by 2020 – up from next to nothing in 2010,” explains Simon Murray, Principal Analyst at Digital TV Research. “Pan-regional services such as Netflix, Clarovideo and Movistar are making an impact and are adding a competitive edge to the SVOD sector.”
The Americas OTT TV & Video Forecasts report estimates 24.05 million SVOD (subscription video on demand) homes by 2020, up from 10,000 in 2010 and an expected 9.84 million by end-2015. From the 17.38 million SVOD home additions between 2014 and 2020, Brazil will supply 7.24 million and Mexico 3.32 million. Colombia will overtake Argentina to take third place in 2016.
By 2020, 15.9% of the region’s TV households will subscribe to a SVOD package, up from only 4.8% by end-2014. Puerto Rico (22.5%) and Chile (20.0%) will have the highest penetration by 2020.