OTT Video - South America | Statista Market Forecast

In South America, revenue in the OTT Video market market is projected to reach US$7.29bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.24%, leading to a projected market volume of US$9.86bn by 2029.
The largest market within this market in South America is OTT Video Advertising, which is anticipated to have a market volume of US$3.51bn in 2024.
In a global context, the United States is forecasted to generate the most revenue, amounting to US$133.70bn in 2024.
Within the OTT Video market market in South America, the number of users is expected to reach 296.0m users by 2029.
User penetration in this region will be 64.5% in 2024 and is projected to rise to 69.6% by 2029.
The average revenue per user (ARPU) in the South American OTT Video market market is projected to be US$27.36 in 2024.
As South America's OTT video market continues to expand, local content production is increasingly becoming a key differentiator for subscriber retention and growth.

Definition:

OTT Video refers to a digital media distribution model where users can access and watch video content at their convenience, usually through an online platform or service. With VoD, users have the flexibility to choose what content they want to watch, when they want to watch it, and how they want to consume it. This allows users to stream or download video content on demand, without the need for traditional broadcasting schedules or physical media. VoD platforms typically offer a wide range of content, including movies, TV shows, documentaries, and other video content, which can be accessed and viewed instantly or stored for later viewing. VoD has become increasingly popular in recent years, offering convenience, flexibility, and a personalized viewing experience for users.

Structure:

The market consists of several markets, namely Video Streaming (SVoD), which is streaming on a subscription basis, Pay-per-View (TVoD), which is paying for digital video content and watch it online, Video Downloads (EST), which is the download of digital video content and OTT Video Advertising, which is the advertising in video streaming.

Additional Information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through purchases and subscriptions. Market numbers for OTT Video can also be found in the video-on-demand market. Key players in the market are companies, such as Netflix, Amazon or Disney+.

Rentals as single transaction or pay-per-view (transactional VoD or TVoD)
Subscription-based services (subscription VoD or SVoD)
Digital purchases via download or permanent cloud storage (electronic-sell-through or EST)
OTT Video Advertising
Free ad-supported streaming TV (FAST) services, such as Pluto TV or Freevee

Pay-TV subscriptions (cable TV, satellite TV, IPTV, DTTV)
Physical home video (DVD & Blu-ray)
Traditional TV advertising

The OTT Video market in South America has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: South American consumers are increasingly turning to OTT video services for their entertainment needs. The convenience and flexibility offered by these platforms, such as the ability to stream content on-demand and across multiple devices, have made them highly popular among consumers. Additionally, the availability of a wide range of content, including international movies and TV shows, has further fueled the demand for OTT video services in the region.

Trends in the market: One of the key trends in the South American OTT video market is the rise of local content. As consumers in the region seek content that is more relatable and culturally relevant, OTT video platforms are investing in producing and acquiring local content. This trend is driven by the success of homegrown content in capturing the attention of South American viewers. By offering a diverse range of local content, OTT video platforms are able to cater to the specific preferences of the South American audience and gain a competitive edge in the market. Another trend in the South American OTT video market is the increasing adoption of subscription-based models. While ad-supported models have traditionally been popular in the region, the shift towards subscription-based models is driven by the desire for uninterrupted and ad-free viewing experiences. This trend is also influenced by the growing disposable income of consumers in South America, allowing them to afford subscription fees for premium OTT video services.

Local special circumstances: South America is a region with a diverse linguistic and cultural landscape. This presents both challenges and opportunities for OTT video platforms operating in the region. To cater to the linguistic diversity, platforms are investing in localization efforts, such as offering subtitles or dubbing in different languages. Additionally, the cultural diversity in South America allows for the creation of content that resonates with specific local audiences, further driving the demand for OTT video services.

Underlying macroeconomic factors: The growth of the OTT video market in South America is also influenced by underlying macroeconomic factors. The increasing internet penetration and smartphone adoption rates in the region have made OTT video services more accessible to a larger population. Additionally, the rising middle class and increasing disposable income in South America have contributed to the growth of the OTT video market, as consumers are able to afford the subscription fees for these services. In conclusion, the OTT Video market in South America is experiencing significant growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The rise of local content, increasing adoption of subscription-based models, and efforts to cater to linguistic and cultural diversity are driving the growth of the market in the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Online video streaming has visibly transformed the global media landscape and impacted viewing behavior around the world. Driven by rapid leaps in internet adoption, widespread availability of mobile devices, and the ever-increasing popularity of online video content, the global video streaming market has experienced unprecedented growth in the last decade. In 2023, the over-the-top (OTT) video revenue reached an estimated 288 billion U.S. dollars, with the United States accounting for the largest share of revenue worldwide. Considering that the list of international streaming services and the catalog of online video content continue to expand at a rapid pace, the number of OTT users worldwide is expected to reach new heights in the future.