Market Trends of Mexico OTT TV and Video Industry
This section covers the major market trends shaping the Mexico OTT TV & Video Market according to our research experts:
OTT industry is expected to register a significant growth in the market
- The increasing penetration of high-speed Internet connectivity, wireless data plans, and the rapid availability of public Wi-Fi increased the demand for OTT in Mexico in different applications, including health, finance, e-commerce, education, and others.
- A massive increase in OTT uptake in Latin America is expected over the next five years, with regional revenues expected to increase significantly. Regional service providers, like Telefonica with its Movistar Play brand and Millicom Group with Tigo Star, capture a large share of the region's video market, thereby becoming leaders in quad-play solutions.
- However, the competition for revenues became fierce as global players like Netflix moved in. Amazon Video is becoming a key competitor for Netflix in the region in catching up on the local content.
- Moreover, to encourage and increase the presence of national content on video-on-demand platforms, Brazil's Ministry of Culture offers tax discounts to include Brazilian content. These tax reductions will depend on the number of Brazilian videos added to the catalogs. This will be an incentive for companies to lower their taxes and help the Brazilian movie and film production companies grow simultaneously.
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SVOD is expected to witness significant growth opportunities in the forecasted period.
- The main factor responsible for the surge in the popularity of SVOD streaming platforms, like Netflix, Amazon Prime Video, Hulu, HBO, and Disney+, is that the user gets unlimited access to original and high-quality content on the go. This trend is also gaining popularity in emerging countries like India. Both Disney and Apple launched streaming services in recent years as more companies look to compete with Netflix in video streaming wars.
- Further, the growth of fiber infrastructure and 5G networks capable of handling the massive increase in digital traffic caused by increasing mobile use of media offerings is anticipated to powerfully drive the digitalization level of video production processes. Moreover, Apple's bundling of access for its hardware consumers will help ensure that subscriber numbers are high from the start. Instead, the limitations of their impact on traditional TV will be a function of the pace at which SVOD services increase spending on programming.
- In terms of regional penetration, the demand depends on various factors such as internet accessibility, low-cost internet, network infrastructure, preference for regional content, smartphone penetration, competitor brands' dominance, regulations related to allowed media, and spending preferences. With SVoD penetration in Mexico still startling low, there is a massive opportunity for expansion.
- In July 2022, ViX+, the premium tier Spanish-language streaming platform from TelevisaUnivision, launched in the US, Mexico, and Spanish-speaking Latin America. The platform kicks off with more than 10,000 hours of film, TV, and sport, offering more than 70 original series and films in the first year, and will carry live football league and tournament games, including the Champions League. In Mexico and Latin America, members can view live TV channels, including Distrito Comedia, while Mexico subscribers will additionally get Las Estrellas, Canal 5, TUDN, and Nu9ve.
