South America Over The Top (OTT) Market Outlook, 2028

The Over-The-Top (OTT) media market in South America has been growing in recent years due to increased internet penetration and a growing demand for online content. The use of OTT services like streaming video, social media, and online gaming has become increasingly popular in the region, with major players like Netflix and Amazon Prime having a strong presence in the market. However, the OTT market in South America also faces several challenges, such as limited broadband infrastructure in some areas, low levels of internet penetration in rural areas, and a lack of local content production. Despite these challenges, the South American market presents significant growth opportunities for OTT companies as the demand for online content continues to increase and internet infrastructure improves. Additionally, the COVID-19 pandemic has accelerated the growth of the OTT market in South America as more people are staying at home and relying on online content for entertainment and information. The region's growing middle class and increasing disposable income also present potential opportunities for OTT companies to reach new customers. According to the research report, “South America Over The Top Market Outlook, 2028” published by Bonafide Research, the market is projected to grow with 16.08% CAGR for 2023-28. The digital infrastructure in South America is evolving, while demand for streaming entertainment is raging due to the pandemic. Though the OTT (over-the-top) space is relatively nascent there, it is poised for growth. This force established content providers on par with early-stage publishers to redirect their efforts towards the booming South America ground before competitors take root. As for the advertisers, they usher opportunities to diversify their audiences. Netflix is currently at the forefront in the region as per the findings. Yet its international competitors, Amazon Prime Video, Disney+, HBO Max, and Apple TV+, as well as local streaming services owned by major TV networks or telecom companies, Claro Video, Blim TV, and Globoplay, go above and beyond to grab their piece of cake. An over-the-top (OTT) platform represents an application-based service that provides direct video streaming and digital media content over the internet. It allows users to access the content on their electronic devices, including smartphones, tablets, smart televisions, etc. OTT platforms provide unlimited data streaming and enable viewers to view the content at their convenience. In line with this, they also offer numerous other benefits, such as improved flexibility to stream movies, TV series, documentaries, etc. OTT platforms are utilized across countries for several purposes, such as entertainment, education, fitness, etc.

According to the report, the market is segmented into three major countries such as Brazil, Argentina and Colombia. Among them, Brazil leads the market with more than 72% Share in 2022. The OTT (Over-The-Top) media market in Brazil has been growing rapidly in recent years, with a significant number of people turning towards online streaming services for entertainment. Brazil has a large population with a strong appetite for digital content and a growing number of affordable smartphones, which has led to an increase in the demand for OTT services. Companies like Netflix, Amazon Prime Video, and Disney+ have gained a significant presence in the country, and local players like Globoplay and Telecine are also popular. The COVID-19 pandemic has further accelerated the growth of OTT services in Brazil as more people stay at home and seek out alternative forms of entertainment. Finally, South America has specific content peculiarities. Besides trendy shows watched all over the world, South Americans adore telenovelas (a special kind of soap opera, recognizable with fast-paced, concise melodrama) and sports (mainly football). This is definitely something worth noting for content owners aiming to capitalize on the market's growth. Furthermore, the rising penetration of smart devices along with high internet connectivity is currently augmenting the demand for OTT platforms in the region. Furthermore, a significant growth in the media and entertainment industry has catalysed the production of high-quality media content, thereby bolstering the market growth in South America. Additionally, the changing consumer inclination from traditionally-used cables and satellite television sets towards OTT platforms based on enhanced convenience, improved connectivity, better accessibility, etc., is further driving the market. Moreover, the growing popularity of Subscription-Video-on-Demand (SVoD) platforms, particularly among the millennial population, is also augmenting the market growth in South America. Apart from this, several OTT service providers are constantly focusing on the deployment of artificial intelligence (AI) to analyse users’ preferences and offer customized content, thereby improving the overall consumer experience. Furthermore, various telecom operators are also collaborating with OTT service providers for providing subscriptions to their users at comparatively lower prices, which will further continue to drive the market growth in South America over the forecast period. For instance, in August 2022, BB Media and OTT.X presented an online webinar about the OTT market in South America, with insights on the streaming business in the region and the possibilities that it offers. South America is one of the fastest-growing over-the-top (OTT) marketplaces in the world. 65% of adults in the region now have an internet connection, and OTT media consumption is quickly becoming the primary reason they use it. Over the next five years, OTT revenues are predicted to triple, according to an independent study by Digital TV Research. However, despite this market’s potential, OTT success in South America requires a unique approach. Streaming market distribution by South America’s largest economies includes Brazil (47 streaming platforms), Mexico (42 streaming platforms), Argentina (48 streaming platforms), Colombia (36 streaming platforms) and Chile (35 streaming platforms).

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Manmayi Raval

Research Consultant

In South America, nine out of 10 people connected to the internet have smartphones, and often that smartphone is their primary internet device. That means the way that South American customers access the internet looks very different than the way North American customers do. For example, in the United States, smartphone users normally shop on their device but then complete the purchase on a desktop computer, according to Gallup. That makes sense in that country, where smartphone penetration still hasn’t surpassed desktop use per household. As of 2021, the internet penetration rate in South America was around 60-65%. However, this varies from country to country with some countries having a higher rate of internet penetration compared to others. That assumption goes out the window when it comes to a South American audience, though; 66 percent of smartphone users in South America have made a purchase from their smartphone in the last six months. In this region, customers search, shop and watch full-length movies — all via smartphone. That means the mobile experience has to be of the highest quality; in fact, in South America, it’s even more of a priority than ensuring the customer gets a passable desktop experience. There are several start-ups operating in the OTT (Over-the-Top) media space in South America. Some of the most notable ones include: • Flow: A South American-based streaming service that offers a wide range of movies, TV shows, and original content. • Claro Video: A South American-based streaming service offered by telecom company America Movil, that offers a wide range of movies, TV shows, and lives TV channels. • Telecine: A Brazilian-based streaming service that offers a wide range of movies and TV shows. • Directv Go: An Argentinean-based streaming service offered by telecom company AT&T, that offers a wide range of movies, TV shows, and lives TV channels. • Cinemark Play: A South American-based streaming service offered by the largest movie theater chain in South America, that offers a wide range of movies and TV shows. Major Companies present in the market: Netflix, Inc, The Walt Disney Company, Apple, Inc, Amazon.com, Inc., Paramount Global, Warnermedia Direct, Llc, Rakuten Group, Inc, Alphabet Inc (Google, Youtube), Microsoft Corporation, Meta Platforms, Inc., Indieflix Gropu Inc., iQIYI, Inc., home box office, Tencent

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Considered in this report • Geography: South America • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South America Over The Top (OTT) market with its value and forecast along with its segments • Country-wise Over The Top (OTT) market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report: • Brazil • Argentina • Colombia By Type: • AVOD (Advertising-based Video On Demand) • SVOD (Subscription Video on Demand) • TVOD (Transactional Video on Demand) • Others By Device Type: • Smartphones and Tablets • Desktops and Laptops • Smart TVs & Set-Top Box • Gaming Consoles & Streaming Devices By Content Type: • Video Streaming • Game Streaming • Audio Streaming • Communication By Service Verticals: • Media and Entertainment • Education and Learning • Gaming • Service Utilities By User Type: • Personal • Commercial By Component Type: • Solution • Services The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Over The Top (OTT) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.