More and more people are having access to Pay TV. Since the year 2008 the medium’s penetration growth has been favorable for the industry as it has had an increase of 40% in 2012, reaching 50.9% of people in Latin America.

Source: Data released by IBOPE’s Establishment Survey 2007, 2008, 2009, 2010 y 2011 for Universes reporting 2008, 2009, 2010, 2011y 2012. Total People. Regions measured by IBOPE: Argentina (includes BsAs: Capital & GBA, Interior: Gran Rosario, Gran Córdoba & Gran Mendoza). Brazil (8 cities). Chile (includes Gran Santiago, Antofagasta, Valparaíso-Viña del Mar, Concepción- Talcahuano, Temuco). Colombia (22 cities & includes Tv por Suscripción & Comunitaria). México (28 cities). Perú (Lima). Central America (Costa Rica=4 cities, Guatemala=7 cities & Panamá=5 cities). Years 2013, 2014 & 2015 are based on LAMAC estimates.

LAMAC (Latin American Multichannel Advertising Council) estimates that within the next couple of years, the Pay TV industry will continue to grow throughout Latin America and that by 2015 Pay TV in the region will reach almost 63% of the population, which means that more than half of the people in Latin America will have a variety of channels offering segmented programming at their disposal.

Penetration in Mature Markets

Colombia and Argentina are highlighted as the countries in the region on which Pay TV’s penetration is mature. In both countries Pay TV penetration is of 81.3%. 

Since 2008, Colombia has registered a 19% growth in Pay TV penetration, in Argentina this growth was of 11%.

Source: Data released by IBOPE’s Establishment Survey 2007, 2008, 2009, 2010 y 2011 for Universes reporting 2008, 2009, 2010, 2011y 2012. Total People. Regions measured by IBOPE: Argentina (includes BsAs: Capital & GBA, Interior: Gran Rosario, Gran Córdoba & Gran Mendoza). Colombia (22 cities & includes Tv por Suscripción & Comunitaria).

Penetration in Emerging Markets

Brazil, Chile and Mexico are considered emerging markets, mainly because the medium’s penetration has increased at an accelerated rate since the year 2008.

Within this group, Brazil is the country that showed the most growth in Pay TV penetration. During the period 2008-2012, the penetration grew 118%, which means that currently 36.1% of Brazilians has access to Pay TV channels (this takes into account 8 regions measured by IBOPE).

In Chile, Pay TV grew 83%, which translates into 63.9% of the population in this country having access to the service.

Lastly, in Mexico Pay TV’s penetration growth was of 38%, therefore the medium reaches 40.5% of Mexicans.

Source: Data released by IBOPE’s Establishment Survey 2007, 2008, 2009, 2010 y 2011 for Universes reporting 2008, 2009, 2010, 2011y 2012. Total People. Regions measured by IBOPE:  Brazil (8 cities). Chile (includes Gran Santiago, Antofagasta, Valparaíso-Viña del Mar, Concepción- Talcahuano, Temuco). México (28 cities).

Penetration by Socioeconomic Strata

According to data released by IBOPE, a very particular trend in Pay TV’s growth in the region is being observed.

Pay TV is no longer a service exclusive to High SES individuals but rather it has turned into medium that is now reaching every segment in the population.

In Latin America 69.2% of High SES individuals have Access to Pay TV, around 49.4% of Medium SES has access to this medium and the penetration is of 40.4% among Low SES. This trend is indicative that Pay TV is breaking socioeconomic barriers and becoming a medium for the masses.

En certain countries, this occurrence can be attributed to an increase in Pay TV packages and offers that provides attractive price points to consumers. This phenomenon has boosted Pay TV’s penetration growth in every socioeconomic group, especially among the middle and low classes.

Data released by IBOPE’s Establishment Survey 2007, 2008, 2009, 2010 y 2011 for Universes reporting 2008, 2009, 2010, 2011y 2012. Total People. Regions measured by IBOPE: Argentina (includes BsAs: Capital & GBA, Interior: Gran Rosario, Gran Córdoba & Gran Mendoza). Brazil (8 cities). Chile (includes Gran Santiago, Antofagasta, Valparaíso-Viña del Mar, Concepción- Talcahuano, Temuco). Colombia (22 cities & includes Tv por Suscripción & Comunitaria). México (28 cities). Perú (Lima). Central America (Costa Rica=4 cities, Guatemala=7 cities & Panamá=5 cities).

Penetration By Age

When analyzing penetration by age it is noted that Pay TV penetration has increased more among younger generations.

Penetration among the segment “Children” is 46.8%, a 43% increase since 2008. Likewise, penetration among “Young Adults” has reached 50.9%, a 45% increase in the past 5 years.

Pay TV plays an important role in everyday life in Latin America; new generations are growing with this medium and, in fact, it is very interesting if it is analyzed from a media planning perspective. Media agencies and advertisers have to keep up with this trend as today’s viewers -children and young adults- will be tomorrow’s decision-makers and consumers.

Data released by IBOPE’s Establishment Survey 2007, 2008, 2009, 2010 y 2011 for Universes reporting 2008, 2009, 2010, 2011y 2012. Total People. Regions measured by IBOPE: Argentina (includes BsAs: Capital & GBA, Interior: Gran Rosario, Gran Córdoba & Gran Mendoza). Brazil (8 cities). Chile (includes Gran Santiago, Antofagasta, Valparaíso-Viña del Mar, Concepción- Talcahuano, Temuco). Colombia (22 cities & includes Tv por Suscripción & Comunitaria). México (28 cities). Perú (Lima). Central America (Costa Rica=4 cities, Guatemala=7 cities & Panamá=5 cities).

Pay TV: A Constant Growth Medium

Pay TV’s penetration growth trend will continue through the years. It is evident that the growth of Pay TV in the region adds one more argument to the well known list of benefits that advertising in this medium infuses to any brand as well as the ability to segment by age or gender.

Currently Pay TV reaches around 50.9% of the population in Latin America, and its penetration will continue to increase. Additionally, there’s a trend among consumers to largely migrate to niche mediums due to the greater affinity they feel towards these media, which generates a robust engagement relationship.

Both media agencies and advertisers are obligated to consider these arguments when crafting their media plans. A media plan that lacks Pay TV won’t yield a balanced strategy, and won’t reach those consumers that really count.