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Frost & Sullivan Brings Out Latin America Pay TV Services Market Analysis [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) Frost & Sullivan said that the Latin American pay TV services market is expected to continue its growth trajectory due to the rise in postpaid subscriptions for direct-to-home (DTH) TV. The company noted that the demand for value-added services such as high-definition (HD) and video on demand (VOD) is further spurring market development. Innovative commercialization models including prepaid plans and multiple-play bundles add to market revenues. According to a media release, new analysis from Frost & Sullivan, Latin America Pay TV Services Market, finds that the market earned revenues of $20.43 billion in 2013 and estimates this to reach $30.91 billion in 2019. The number of subscribers in the region will touch 86.1 million by 2019 from 55.9 million in 2013, hitting a household penetration rate of 57.9 percent. The study covers cable TV, DTH, multichannel multipoint distribution service and Internet protocol TV (IPTV). "As customers increasingly expect higher video quality and content diversity, Latin American operators are expanding the line- up of HD channels at affordable prices," said Frost & Sullivan Information and Communication Technologies Industry Manager Renato Pasquini. "While some companies have already packed their portfolios with HD channels, others are speeding up the transition from standard-definition to HD to boost incremental revenues per user." Operators are looking to combine voice, data, video and mobile services in bundles to lower service costs for their customers. However, the heavy taxes levied on pay TV services, especially in Brazil, and the low returns on network deployments in remote areas and small cities challenge operators' ability to offer convergent services. The next era of pay TV will, therefore, coincide with the introduction of new network architectures that place content close to the user. As a result, VOD is likely to become one of the main modalities for consuming video, enabling a look and feel closer to Internet-delivered services than traditional content delivery. Hence, the over-the-top (OTT) segment, though currently not a threat, may eat into the market share of pay TV services depending on the quality of broadband offerings and attractiveness of content. As sophisticated delivery models gain ground, broadening the geographic footprint of pay TV services will take the Latin American market to the next level of competitiveness. Latin America Pay TV Services Market is part of the Telecom Services Growth Partnership Service program. Frost & Sullivan works in collaboration with clients to address the global challenges and related growth opportunities that will make or break today's market participants. Report information: corpcom.frost.com/forms/LA_PR_FValente_NDD7-63_13Oct14 More information: www.ipcommunications.frost.com www.frost.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |