The CIU report found that Mexico’s over-the-top (OTT) services reached seven million subscriptions by the end of Q1 2017, up 24.1% year-on-year. The market is led by satellite TV (11.2 million subs, up 3.7%) and cable (8.6 million, up 1.1%).
The report pointed out that OTT is by far the fastest growing video distribution technology in Mexico. “Exclusive content available to be consumed everywhere on-demand has boosted OTT subscriptions. OTT’s market share is of 24.4%, nearing cable TV’s (31%),” explained analyst Radames Camargo.
However, a big gap is found when it comes to revenues. According to the report, the market neared an income of $1.5 billion in the quarter, 10.3% of was generated by OTT platforms. Satellite TV contributed with 59.2% and cable TV with 30.5%.
“This is attributable to OTT’s monthly prices, which are cheaper than the most basic pre-paid satellite TV packages,” said the analysis. “On average, OTT’s monthly subscription is $6.80, while basic pay-TV packages are $11.30.”
“Pay-TV operators have deployed new strategies to deliver video-on-demand (VOD) content in order to face OTT’s competition,” continued Radames Camargo. “With an increasing offering and the unstoppable growth of OTT services, the market will continue to grow in the future, both in income and subscriptions.”
Source: https://www.rapidtvnews.com/2017071748030/ott-boosts-mexican-video-industry.html#axzz4n8wBrgBH