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OTT poised for strong growth in LATAM

OTT poised for strong growth in LATAM

OTT poised for strong growth in LATAM

Premium OTT is set for strong growth in Argentina, Brazil and Mexico, according to new research by Vindicia, Ooyala and MTM.

Industry participants across the region expect key markets to roughly double in size between 2015 and 2018, from $45m to $115m in Argentina, $180m to $460m in Brazil, and from $240m to $450 million in Mexico.

“Premium OTT in Latin America has developed relatively slowly, despite Netflix’s strong presence in the region, but strong local players are now gearing up to grow the OTT market,” explains Jon Watts, Managing Partner at MTM. “There is considerable headroom for growth, especially at lower price points.  While Netflix and other international contenders will have to fill the local content gap, everyone will have to face the challenges of poor broadband infrastructure, driving consumer awareness and take-up, and processing payments.”

MTM interviewed 60 experienced executives from across the technology, media and entertainment industries, including studios and broadcast networks, rights holders, leading multichannel video programming distributors (MVPDs), mass-market and niche OTT providers and online video businesses, producers, and investors.

Industry participants are optimistic about future prospects for the market, but highlight important challenges facing local providers, including poor broadband infrastructure, high levels of piracy and payment complexities.

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