Over-the-top (OTT) revenues are projected to skyrocket in Latin America. Based on the “Latin America OTT TV & Video Forecasts” survey, earnings figures will soar in 2023 by $4 billion to $6.43 billion.
The report noted that this growth in revenues from OTT films and TV shows would be felt in 19 Latin American countries. The increase marks an increment from the recorded $2.47 billion figure last year.
By 2023, the comprehensive study said that an income total of $5.32 billion would be produced by the top the five countries. This figure translates to 83 percent of the overall total in Latin America.
Subscription video-on-demand (SVOD) will be Latin America’s largest source of OTT revenue. This service is forecasted to yield $4.42 billion by 2023.
Simon Murray, Digital TV Research’s Principal Analyst, predicted that there would be 48.24 million SVOD customers by 2023. This number is greater than double from the 21.14 million subscribers tallied at the end of last year.
Murray said that by 2023, 28.4 percent of Latin America’s TV households would become paid SVOD subscribers. This will be an increase from 13.2 percent by the end of 2017.
He added that by 2023, Puerto Rico (53.5 percent) and Mexico (51.8 percent) would account for the highest SVOD subscriptions. These are the only Latin American nations in the region where there is an Amazon Prime service.
Mexico is benefitting from the Amazon Prime streaming service. It is foreseen to become the leader in SVOD subscription in 2019, accounting for 36 percent of Latin America’s SVOD subscriptions. On the other hand, Brazil will bring in an additional 27 percent.
Mainstream streaming services like Amazon Prime Video, Netflix, Sony Crackle, and HBO as well as Latin American players like Movistar Play, Claro Video, and Blim, will make up for 91 percent of Latin America’s paying SVOD customers by the culmination of 2023.
Netflix is forecasted to keep its position as the biggest pan-regional SVOD platform through some distance. It will have an estimated 23.99 million customers in 2023 or half Latin America’s total, a decline from a 67 percent share last year.