With the arrival of new players and platform, it’s no wonder the streaming market is poised for growth all over the world, and being one of the markets with the largest potential, Latin America is no exception.
According to a new report by Digital TV Research, there will be 48.24 million SVOD subscribers in Latin America by 2023; more than double the 21.14 million recorded at end of 2017.
According to the report, this means 28.4% of the region’s TV households will pay for an SVOD package by 2023, up from 13.2% last year.
With those percentages, OTT revenue across 19 Latin American countries will reach US$6.43 billion by the end of those five years, up from the US$2.47 billion recorded in 2017.
Of that, the top five countries (Argentina, Brazil, Colombia, Mexico and Puerto Rico) will account for 83% of the regional total, or US$ 5.32 billion in revenue.
SVOD will remain the region’s largest OTT revenue source; contributing US$ 4.42 billion by 2023.
Benefiting from the availability of Amazon Prime, Mexico will become the SVOD subscriber leader in 2019 despite having just 60% of the population of Brazil. Mexico overall will account for 36% of the region’s SVOD subscriptions by 2023, with Brazil bringing in a further 27%.
“Puerto Rico (53.5%) and Mexico (51.8%) will have the highest penetration by 2023,” said Simon Murray, principal analyst at Digital TV Research . “These two countries are the only ones in the region where Amazon Prime operates.”
On the services front, Amazon Prime Video, Blim, Claro Video, Crackle, HBO, Movistar Play and Netflix will together account for 91% of the region’s paying SVOD subscribers by the end of the forecast, the firm said.
Netflix will remain the largest pan-regional SVOD platform by some distance, with an expected 23.99 million paying subscribers in 2023, or half the region’s total (down from a two-thirds share in 2017).