The Latin America OTT services market size reached US$ 5,752.6 million in 2018. Demand for OTT services recorded a y-o-y growth rate of 9.5% in 2022. The Latin America market is expected to reach US$ 8,455.5 million in 2023.
Over the projection period from 2023 to 2033, OTT services demand in the region is predicted to exhibit 17.5% CAGR. It is likely to surpass a valuation of US$ 42,299.3 million by the end of 2033. Latin America OTT services market holds around 8% of the global digital media market.
Smartphones are the primary device for accessing the internet in Latin America. With increasing affordability and availability, more people have gained access to smartphones, leading to a surge in mobile-based OTT consumption. Streaming services have capitalized on this trend by developing mobile-friendly interfaces and apps.
Latin America has experienced significant growth in internet penetration and connectivity, providing a larger user base for OTT services. Proliferation of affordable smartphones and expansion of 4G and 5G networks have enabled more users to access high-quality streaming content, which would spur demand.
Investments in digital infrastructure such as fiber optic networks and broadband expansion, have enhanced the streaming experience. Better internet speeds and reliability have encouraged users to consume OTT services without buffering or interruptions, thereby driving demand.
Latin America has historically faced challenges in traditional television services such as limited channel options, scheduling constraints, and language barriers. OTT services offer a broader range of content choices, including international programming, multilingual subtitles, and on-demand viewing, addressing the limitations of traditional TV and attracting more viewers.
OTT providers have recognized the importance of localized content to cater to viewers in Latin America. By offering a diverse range of regional content, including local films, TV shows, and exclusive productions, OTT services have captured the attention of viewers who seek content that reflects their culture, language, and experiences.
| Attributes | Key Insights |
|---|---|
| Latin America OTT Services Market Estimated Size (2023E) | US$ 8,455.5 million |
| Projected Market Valuation (2033F) | US$ 42,299.3 million |
| Value-based CAGR (2023 to 2033) | 17.5% |
| Collective Value Share: Top 5 Vendors | 55% |
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The Latin America OTT services market witnessed a CAGR of 6.9% in the historical period between 2018 and 2022. It is anticipated to showcase a robust CAGR of 17.5% from 2023 to 2033.
Since OTT services began to gain momentum, traditional cable television has started to become outdated. This is the primary reason for OTT services to have accumulated a vast space for expansion. OTT services have changed the way consumers seek entertainment by making digital content accessible from smartphones, computers, laptops, and smart TVs.
OTT services in Latin America have been showing a steady growth rate in the past few years, and it is expected to surge rapidly over the forecast period. Latin America is an emerging market for OTT services.
Numerous OTT platform companies are going head to head with other competitors. There are also numerous regional OTT service platforms that are on the run for making their space in the market.
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Technology is critical in increasing the significance of OTT services throughout Latin America. Owing to features such as cloud-based streaming platforms and support for live broadcasts with video-on-demand (VOD), these services have become immensely popular. Increasing demand for modern services that offer a large content archive with no buffering, adaptable video streaming, and instinctive content discovery is set to push the market.
Cloud-based streaming services have an important application in Latin America. Consumers can access their preferred digital content from anywhere on the streaming application.
With this technology, today’s consumers are not restricted to a specific timing to access the content. A handful of OTT service providers would also allow users to watch any of the available content simultaneously while enabling webcam communication. Introduction to such novel features is estimated to propel the market in Latin America.
Over-the-top Media Service Providers in Brazil to Focus on Creating Local Content
The OTT services market in Brazil is massively populated. Key companies such as Netflix, Amazon Prime, and Globoplay are putting efforts in coproducing local content to attract audiences to purchase their subscriptions. Even though companies with a global presence have penetrated into vast areas of the market, regional OTT platforms such as Globoplay and Telecine are giving tough times to these behemoths.
The primary strategy for these OTT service companies is to gather attention of the audience by releasing local content. With regional content production, OTT companies can cater to the demand from their local audience.
It can further lead to increased engagement and loyalty. Local content can have greater cultural relevance to the audience and help create a deeper connection between the audience and the OTT service. This connection can lead to increased loyalty and customer retention.
Production of local content is driving growth in the Brazil OTT services market. Ability of these services to offer the native audience a cultural relevance is set to drive sales. This would also enable consumers to buy more subscription plans. The Brazil market hence held a share of 28.2% in 2022.
Increasing Internet Users in Mexico to Push Demand for OTT Streaming Platforms
According to Future Market Insights (FMI), Mexico is the second-largest OTT services market in Latin America, with a large and growing population. The country held a share of around 19.4% in 2022.
OTT companies that can successfully establish their presence in Mexico would have the potential to expand their reach into other countries. According to the International Telecommunication Union (ITU), around 72% of the population is using the internet in Mexico. Due to this vast number of internet users, the market for OTT services witnessed rapid growth in Mexico.
Numerous OTT companies are garnering revenue from various types of streams such as subscriptions, advertising, and partnerships with content producers. Key companies are likely to gain new opportunities in Mexico to diversify their revenue streams and reduce their reliance on a single source of income.
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Over-the-top Media Services to Gain Momentum in Latin America through 2033
One of the main reasons for the booming market for OTT services is increasing demand for media services. With the rise of smartphones and high-speed internet, people are consuming more audio and video content than ever before.
It has led to the emergence of new players who are providing high-quality media services through OTT platforms. Game streaming has become the new hot topic in the streaming business as numerous viewers are interested in watching their favorite gameplays.
Popularity of gaming and web content has also contributed to growth in the Latin America OTT services industry. With convenience of accessing content anytime and anywhere, consumers are increasingly turning to OTT services for their entertainment needs. Hence, this segment generated a market share of 36.6% in 2022.
Premium & Subscription Models to be Highly Popular among OTT App Providers
Subscription models provide a predictable source of revenue for OTT service providers. OTT service providers are expected to know how many subscribers they have and how much revenue they will generate from those subscribers each month.
It also provides a recurring source of revenue for OTT service providers. This would further help them to better plan and invest in content creation and platform development.
Premium and subscription models would provide a clear value proposition to customers. Customers can pay a monthly or annual fee and receive access to a large library of content. This is considered to be a better value proposition than traditional cable or satellite TV services.
Premium and subscription business models have proven to be successful in the OTT services business as they provide a predictable and recurring source of revenue. They also deliver a clear value proposition, which would expand their sales. Hence, the premium and subscription segment held a market share of 47% in 2022.
Streaming OTT Services for Personal Use to Expand across Latin America
OTT services are generating most of its revenue from personal users through a variety of methods. One of the primary ways that OTT services can make revenue is through subscription fees.
In Latin America OTT service industry, subscription plans are a prominent offering providing users with access to premium content, enhanced viewing experiences, and exclusive features. These subscriptions are available on a monthly or annual basis, providing cost-effective alternatives to traditional cable or satellite TV packages.
A few OTT services generate revenue through transactional models. These models enable users to pay for specific content, or features, on a per-use basis. For example, a user might pay to rent or purchase a movie or TV show from an OTT service.
Personal users can add up to the massive revenue generated by OTT services in several ways. Personal users are set to be the primary target audience for these services. Revenue generated from their subscriptions, advertising, and transactional purchases makes up the bulk of the revenue stream for most OTT services.
Revenue can be substantial, as the user base for few of the largest OTT services runs into the hundreds of millions users. The segment held a market share of 56.5% in 2022.
Competitive grounds for the Latin America OTT services industry are diverse and constantly evolving. Successful providers will need to offer a combination of local content, competitive pricing, a seamless user experience, original programming, and strategic partnerships to stand out in this competitive landscape.
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| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | US$ 8,455.5 million |
| Projected Market Valuation (2033) | US$ 42,299.3 million |
| Value-based CAGR (2023 to 2033) | 17.5% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value (US$ million) |
| Key Countries Covered | Brazil, Mexico, Argentina, Chile, Colombia, Peru, and rest of Latin America |
| Key Segments Covered | Service Type, Business Model, End User, and Country |
| Key Companies Profiled | Amazon Prime Video; Apple TV+; Box Brazil; Claro; Disney+; América Play Go; Megamedia; Globo Play; HBO; Netflix; Sky; Telecine; Telefónica |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The Latin America OTT services market is expected to reach US$ 8,455.5 million in 2023.
The market is anticipated to expand at a CAGR of 17.5%.
The market value is expected to reach US$ 42,299.3 million by 2033.
Surging availability of affordable data plans and increasing popularity of VOD services are shaping the market trajectory.
Introduction of new features and technological advances are expected to create winning prospects for market players.
1. Executive Summary
1.1. Latin America Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Key Market Trends
3.1. Key Trends Impacting the Market
3.2. OTT Technology Innovation / Development Trends
4. Pricing Analysis
4.1. Pricing Analysis, by OTT Services
4.2. Average Pricing Analysis Benchmark
5. Market Demand (Value in US$ million) Analysis 2018 to 2022 and forecast, 2023 to 2033
5.1. Historical Market Value (US$ million) Analysis, 2018 to 2022
5.2. Current and Future Market Value (US$ million) Projections, 2023 to 2033
5.2.1. Y-o-Y Growth Trend Analysis
5.2.2. Absolute $ Opportunity Analysis
6. Market Background
6.1. Macro-Economic Factors
6.2. Forecast Factors - Relevance & Impact
6.3. Value Chain
6.4. COVID-19 Crisis - Impact Assessment
6.4.1. Current Statistics
6.4.2. Short-Mid-Long Term Outlook
6.4.3. Likely Rebound
6.5. Market Dynamics
6.5.1. Drivers
6.5.2. Restraints
6.5.3. Opportunities
7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service Type
7.1. Introduction / Key Findings
7.2. Historical Market Size (US$ million) Analysis By Service Type, 2018 to 2022
7.3. Current and Future Market Size (US$ million) Analysis and Forecast By Service Type, 2023 - 2033
7.3.1. Media Services
7.3.1.1. Audio/Video
7.3.1.2. Gaming
7.3.1.3. Web Content
7.3.2. E-services
7.3.3. Communication Services
7.3.4. Cloud Services
7.4. Market Attractiveness Analysis By Service Type
8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Business Model
8.1. Introduction / Key Findings
8.2. Historical Market Size (US$ million) Analysis By Business Model, 2018 to 2022
8.3. Current and Future Market Size (US$ million) Analysis and Forecast By Business Model, 2023 - 2033
8.3.1. Premium & Subscription
8.3.2. Adware
8.3.3. E-commerce
8.4. Market Attractiveness Analysis By Business Model
9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-user
9.1. Introduction / Key Findings
9.2. Historical Market Size (US$ million) Analysis By Business Model, 2018 to 2022
9.3. Current and Future Market Size (US$ million) Analysis and Forecast By Business Model, 2023 - 2033
9.3.1. Personal
9.3.2. Commercial
9.3.2.1. Healthcare
9.3.2.2. Media & Entertainment
9.3.2.3. E-commerce
9.3.2.4. IT
9.3.2.5. Education
9.3.2.6. Others
9.4. Market Attractiveness Analysis By End-user
10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ million) Analysis By Country, 2018 to 2022
10.3. Current and Future Market Size (US$ million) Analysis and Forecast By Country, 2023 - 2033
10.3.1. Brazil
10.3.2. Mexico
10.3.3. Argentina
10.3.4. Chile
10.3.5. Colombia
10.3.6. Peru
10.3.7. Rest of Latin America
10.4. Market Attractiveness Analysis By Country
11. Key Countries Analysis- Market
11.1. Brazil Market Analysis
11.1.1. By Service Type
11.1.2. By Business Model
11.1.3. By End-user
11.2. Mexico Market Analysis
11.2.1. By Service Type
11.2.2. By Business Model
11.2.3. By End-user
11.3. Argentina Market Analysis
11.3.1. By Service Type
11.3.2. By Business Model
11.3.3. By End-user
11.4. Chile Market Analysis
11.4.1. By Service Type
11.4.2. By Business Model
11.4.3. By End-user
11.5. Colombia Market Analysis
11.5.1. By Service Type
11.5.2. By Business Model
11.5.3. By End-user
11.6. Peru Market Analysis
11.6.1. By Service Type
11.6.2. By Business Model
11.6.3. By End-user
11.7. Rest of Market Analysis
11.7.1. By Service Type
11.7.2. By Business Model
11.7.3. By End-user
12. Market Structure Analysis
12.1. Market Analysis by Tier of Companies
12.2. Market Share Analysis of Top Players
12.3. Market Presence Analysis
13. Competition Analysis
13.1. Competition Dashboard
13.2. Competition Benchmarking
13.3. Competition Deep Dive
13.3.1. Amazon Prime Video
13.3.1.1. Business Overview
13.3.1.2. Solution Portfolio
13.3.1.3. Profitability by Market Segments (Business Segments/Country)
13.3.1.4. Key Strategy & Developments
13.3.2. Apple TV+
13.3.2.1. Business Overview
13.3.2.2. Solution Portfolio
13.3.2.3. Profitability by Market Segments (Business Segments/Country)
13.3.2.4. Key Strategy & Developments
13.3.3. Box Brazil
13.3.3.1. Business Overview
13.3.3.2. Solution Portfolio
13.3.3.3. Profitability by Market Segments (Business Segments/Country)
13.3.3.4. Key Strategy & Developments
13.3.4. Claro
13.3.4.1. Business Overview
13.3.4.2. Solution Portfolio
13.3.4.3. Profitability by Market Segments (Business Segments/Country)
13.3.4.4. Key Strategy & Developments
13.3.5. Disney+
13.3.5.1. Business Overview
13.3.5.2. Solution Portfolio
13.3.5.3. Profitability by Market Segments (Business Segments/Country)
13.3.5.4. Key Strategy & Developments
13.3.6. América Play Go
13.3.6.1. Business Overview
13.3.6.2. Solution Portfolio
13.3.6.3. Profitability by Market Segments (Business Segments/Country)
13.3.6.4. Key Strategy & Developments
13.3.7. Megamedia
13.3.7.1. Business Overview
13.3.7.2. Solution Portfolio
13.3.7.3. Profitability by Market Segments (Business Segments/Country)
13.3.7.4. Key Strategy & Developments
13.3.8. Globo Play
13.3.8.1. Business Overview
13.3.8.2. Solution Portfolio
13.3.8.3. Profitability by Market Segments (Business Segments/Country)
13.3.8.4. Key Strategy & Developments
13.3.9. HBO
13.3.9.1. Business Overview
13.3.9.2. Solution Portfolio
13.3.9.3. Profitability by Market Segments (Business Segments/Country)
13.3.9.4. Key Strategy & Developments
13.3.10. Netflix
13.3.10.1. Business Overview
13.3.10.2. Solution Portfolio
13.3.10.3. Profitability by Market Segments (Business Segments/Country)
13.3.10.4. Key Strategy & Developments
13.3.11. Sky
13.3.11.1. Business Overview
13.3.11.2. Solution Portfolio
13.3.11.3. Profitability by Market Segments (Business Segments/Country)
13.3.11.4. Key Strategy & Developments
13.3.12. Telecine
13.3.12.1. Business Overview
13.3.12.2. Solution Portfolio
13.3.12.3. Profitability by Market Segments (Business Segments/Country)
13.3.12.4. Key Strategy & Developments
13.3.13. Telefónica
13.3.13.1. Business Overview
13.3.13.2. Solution Portfolio
13.3.13.3. Profitability by Market Segments (Business Segments/Country)
13.3.13.4. Key Strategy & Developments
14. Assumptions and Acronyms Used
15. Research Methodology
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Latin America OTT Services Market
