Mexico: the future of Pay TV and new OTT platforms

During the last Nextv series Mexico event, Dataxis shared some numbers regarding the Pay TV market in Mexico and LATAM.

These are the conclusions of a very interesting presentation:

  • Latin America’s pay-TV market is stagnant and with a slight decline, but there are no suggestions for severe cord-cutting. Mexico copies the trend of the region and is at the most critical threshold that includes net loss of subscribers with a high penetration.
  • What distinguishes Mexico is its low level of ARPU in pay-TV dollars, compared to countries like Argentina, Brasil or Chile, which limits all business development
  • In fixed broadband there is a strong price of migration from docsis to GPON (FTTH) from the cable operators – especially small ones – which adds to the migration of telcos to FTTH and the emergence of ISPs with GPON networks. It is the same phenomenon throughout Latin America
  • Fixed broadband will surpass pay-TV subscribers in Mexico between the end of 2019 and the beginning of 2020, which opens the door to new OTT-based models
  • Pay TV consolidates the new-generation TV everywhere models as a platform for development of OTT services and D2B2C programmers

Generally speaking, LATAM is characterized by high ARPU levels and strong internet penetration, which represents a great opportunity for OTT and SVOD growth. For two days this show will discuss how better adapt to this reality.

Alpha Networks has its participation in the first day together with Jonathan Virgen from DISH Mexico. During the panel Next Pay-TV platforms and OTT, we discussed around new OTT platforms and how new features can help protect revenues and better monetise the content.

We also discussed what can be the most effective strategies to enhance user experience once more and more video consumption is being split into different screens. We all agreed that deliver a unique experience to the end user is the key when operators become a huge content hub. Furthermore, being able to animate content always “help users” to easily find what they are looking for on a TV platform (and reduce the risk of churn).

Alpha Networks is uniquely positioned to offer an end-to-end experience as well to grant operators with an all-in-one concept: back-end + User interface +MultiDRM + Transcoding + Origin/Packager key.

To start an OTT project as-a-service you need to have a system that relies on a 100% cloud-based environment with advanced features such as a strong recommendation engine, Binge-watching, content animation and so many others.

This remains the best approach to have clever use of investment of resources.

José Luiz Ribeiro, Sales Director LATAM at Alpha Networks