A d v a n c e d Te l e v i s i o n
LatAm
Market Briefing 2018
LatAm multichannel revenue
heads for $33bn
L
Mediapro, VICE
co-pro deal
Audiovisual group Mediapro
US, and multimedia company
VICE have signed an
agreement of co-development
and co-production of original
scripted series.
Border Republic is the first
result of this agreement, a
fiction series ‘told through
atin America and
the Caribbean is the
world’s fourth-largest
multichannel regional video
market by revenues and fifth in
terms of subscribers, according
to Kagan’s Latin America
Multichannel & Broadband
Market Overview. Growth
slowed in 2016 and 2017 as a 42.3% fewer than in 2016.
As of year-end 2017, DTH
was the dominant delivery
platform, with 48.2% of
subscribers, closely followed
by cable with 47.9%.
Kagan forecasts sound
economic fundamentals
should take multichannel
households to 97.5m by economic slowdown. ARPU
levels recovered slightly
during 2017, supported by
economic stabilisation across
the region. Nevertheless,
ARPU is still below 2014
levels. AT&T’s DirecTV had
the highest ARPU in 2017
as a result of its focus on the
premium segment.
result of political and economic
turmoil in some of the biggest
markets of the region.
Through strategic
acquisitions and organic
growth, AT&T DirecTV Latin
America and América Móvil
have become the top players
in the market. Kagan projects
the market will keep growing
as the economic environment
stabilises.
The market served
an estimated 73.2m
subscribers out of 176m
TV households in the
region by the end of 2017,
representing a multichannel
penetration rate of 41.6%.
Market growth continues
to slow: Kagan estimates
the industry added 1.3m
subscribers during 2017, 2026, when 46.7% of TV
households should subscribe
to some form of pay-TV
service. Multichannel
revenue is estimated at
$19.74 billion for 2017
and is expected to reach
$32.97 billion in 2026.
Multichannel monthly
average revenue per user is
projected to reach $28.56 by
2026, increasing 26% from
an estimated $22.66 in 2017.
Revenue growth should be
driven mainly by subscriber
and ARPU growth as well as
advanced-service launches
on emerging digital cable
and IPTV systems.
Multichannel ARPU
trended down for the past six
years. behind the as a resuult
of currency depreciation and Consolidation of pay-
TV systems has improved
investment dynamics for both
MSO and DTH platforms,
which are benefiting from
increased economies of scale
that allow for continued
infrastructure and technology
upgrades as well as improved
programming negotiations.
Analysis indicates the
LatAm and Caribbean
markets are still rife with the
fundamental challenges of
piracy, poverty and inflation,
particularly in smaller
markets.
Widespread DTT
development, cable digitisation
and low-cost packages should
make digital TV a reality for
many households over the next
10 years.
the lens of VICE’ on the
border between USA and
México.
Production of the series
will take place in 2019. It
will feature the narrative
imprint and visual style of
VICE’s famous, high-quality
documentary series.
Andrés Reymondes, CEO for
VICE LatAm & US Hispanic,
said: “This is the first of
many scripted projects that
we’ll be developing from
VICE Studios LatAm in the
coming years.”
“We are very pleased to have
VICE as a partner,” added
Laura Fernández Espeso,
director of international
content of the Mediapro
Group. We are confident
that its enormous trajectory,
along with Mediapro’s
experience in scripted
content, will provide
unthinkable stories to our
viewers.”
“VICE has renewed the
documentary language to
such an extent, that merely
a frame is necessary to
recognise their signature,”
commented Daniel Burman,
content director of Mediapro
in the US.