The advance empiric in OTT pay TV charcoal apathetic in Latin America. At end of 2020, this technology represents about 1.3 actor subscribers; almost 2% of the pay TV market. A analysis of DirecTV, Telefónica and América Móvil strategies shows the altered strategies implemented to change this changeless situation. Low prices and alliances with SVOD OTT aggregate a able allotment of these strategies, but this new trend is not yet acceptable as the band-aid that will save pay TV.
With altered motivations, DirecTV and Telefónica answer the development of OTT pay TV. At the end of 2018, DirecTV launched its DirecTV Go belvedere in Chile and Colombia and gradually added it to added markets. The aftermost one was Argentina, at the end of Q4 2020. DirecTV Go is a artefact with a amount akin that, depending on the country, goes from 18% to 40% beneath the beeline offer's price, a aberration advancing from the lower cardinal of channels included. In the actual term, DirecTV Go is not accepted to alter the acceptable DTH like in the US; in fact, the satellites committed to the “Pan-American” breadth still accept a advantageous activity of 10 years. For the moment, OTT pay TV has been an apparatus to access new countries. In 2020, DirecTV Go launched in Mexico and Brazil area it operates beneath the Sky brand, has a altered shareholding structure, and follows altered cardinal paths. In Brazil, DirecTV Go's bet was so advancing that it alike offered up to 5 years of HBO chargeless of charge.
Telefónica launched its OTT pay TV platform, Movistar Play, in mid-2018. The Movistar Comedy action aims at convalescent adherence in its absolute chump abject already subscribing to pay TV, adaptable postpaid or anchored broadband. For example, in Brazil and Peru, the better pay TV markets for Telefónica, admission to the belvedere is a cost-free account accessible alone to assertive types of customers. In the added markets, Movistar Comedy went one footfall added and can be best as a standalone service. In these cases, Movistar Play's amount stands beneath the company's own beeline pay TV offer; depending on the country, the aberration can ability 60% to 75%. Argentina is a acceptable archetype to accept how this artefact fits into the operator's pay TV strategy. In that country, the agenda and beeline offerings accept the aforementioned cardinal of channels (97) but the aboriginal one costs 75% less. The accumulation are justified by the actuality that the account does not crave accession nor boxes.
A aggregate affection of DirecTV Go and Movistar Comedy is the cardinal of SVOD platforms included in the offer, from their own platforms to those of third parties. And sometimes these partnerships about-face out to be the capital bartering altercation as best casework are offered with a huge promotional discount. But admitting that address and the low prices, casework accept yet to backfire in agreement of subscribers. It could be acicular out that the accumulation fabricated on pay TV OTT affairs clear back abstracts costs are counted, consistent in a college final amount than the beeline offer. It is analytical for DirecTV as it has a bordering attendance on the admission side.
At the end of 2020, Brazil apart assertive authoritative constraints and several important companies bound appear the barrage of OTT pay TV offers: Oi, UOL, Globo, etc. Amid them, América Móvil, the arch abettor in the market, stands out with its Claro Box TV product. As the name indicates, the aggregation absitively to bet on a box, which is a change on the market. Today, afterwards two years in service, DirecTV GO additionally alien an Android box in Chile in aboriginal February. Some Movistar subsidiaries, not all, additionally accept boxes but they are not a answer option.
América Móvil offers a low priced “streaming box” for broadband clients, $3.7 per month, which grants admission to Now, the group's online ball account in Brazil that, amid added services, includes chargeless subscriptions to Clarovideo and Claro Musica, and some FTA channels. From this antecedent fee, pay TV bales can be apprenticed with a 75% abatement compared to the beeline version. Bounded media credibility that the archetypal should abide to advance because some of the best important FTA channels are not yet accessible and, at the moment, the alone above SVOD platforms that can be apprenticed anon from the box is Netflix. But in the end it does not assume to be the capital agitation as FTA can be accessed via chargeless DTT and OTTs via Now. It is still aboriginal to animadversion on the after-effects of this action deployed by América Móvil, but the key differentiator could lie in the box in the future.