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In 2011 the Penetration of Pay TV Will Continue to Grow in Latin America
Although the world is going through a tough economic period, one industry that is growing in Latin America is pay television.
Based on figures published by LAMAC, in the last three years the total growth of pay television in the region reached 52%. The current state of penetration, i.e. the percentage of homes with pay TV in Latin America, is 35%, which means that there are 42.5 million pay TV homes.
Pay TV in Mexico has grown by 34% in the last two years. This means that nationally the penetration is around 41.2%, with well over 10 million subscribers (data provided by LAMAC).
In the past two years, Brazil had a remarkable 53% growth, meaning that 28.6% of households already have this service. (information collected only in the areas recorded by IBOPE).
Chile experienced 22% growth in just two years. 55.6% of households there already have pay TV service, which represents more than half of the households in the regions measured by IBOPE.
This enormous growth is the result of a greater number of companies offering pay TV services, low cost, such as DTH (Direct to Home), and greater affordability. This has led us to see impressive increases in pay TV penetration, mostly in the middle and lower classes, which has transformed the landscape of access to service in the region.
According to Gary McBride, president of LAMAC, this behavior shows that countries like Brazil, Mexico and Chile are in process of reaching penetration levels similar to Colombia and Argentina, where almost 80% of households already have pay TV.
"As a result of such rapid growth in the penetration of pay TV households in all Latin American countries, advertisers and advertising agencies will no doubt have to reassess the distribution of their advertising budgets to be consistent with these changes. Pay TV should be more relevant in its guidelines and the investment mix it handles," stated Gary McBride.
Sources: Universos Ibope 2009 to 2011 for Argentina, Brasil, Chile and Colombia,except Mexico and total figures for LATAM, which were estimated by LAMAC.
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