Traditional TV & Home Video - Brazil

In Brazil, revenue in the Traditional TV & Home Video market market is projected to reach US$11.20bn in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 1.42%, resulting in a projected market volume of US$12.02bn by 2029.
The average revenue per user (ARPU) in Brazil is expected to amount to US$67.49.
In global comparison, most revenue will be generated the United States, which is expected to reach US$146.60bn in 2024.
The number of TV Viewers in Brazil is expected to amount to 171.5m users by 2029.
User penetration in the Traditional TV & Home Video market market in Brazil is expected to be at 76.2% in 2024.
Furthermore, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Brazil is projected to amount to US$67.49 in 2024.
Brazil's traditional TV and home video market is experiencing a gradual decline as streaming services gain dominance among consumers seeking diverse and accessible content.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in Brazil has been experiencing significant growth in recent years.

Customer preferences: Brazilian consumers have shown a strong preference for traditional TV and home video content. Despite the rise of online streaming platforms, traditional TV remains the primary source of entertainment for many households. This can be attributed to several factors, including the wide availability of free-to-air channels, the cultural importance of telenovelas, and the desire for live sports coverage. Additionally, physical home video formats such as DVDs and Blu-rays continue to be popular among consumers who value the tangibility and collectability of physical media.

Trends in the market: One of the key trends in the Brazilian Traditional TV & Home Video market is the increasing adoption of digital TV. The government has been pushing for the transition from analog to digital broadcasting, which has led to a rise in the number of households with digital TV sets. This trend has also opened up new opportunities for broadcasters to offer additional channels and services. Another trend in the market is the growth of streaming services. While traditional TV remains dominant, streaming platforms such as Netflix, Amazon Prime Video, and Disney+ have gained popularity among Brazilian consumers. This can be attributed to the convenience and flexibility of streaming, as well as the availability of a wide range of content, including international TV series and movies.

Local special circumstances: Brazil's large population and diverse cultural landscape contribute to the unique characteristics of the Traditional TV & Home Video market. The country has a rich tradition of producing high-quality TV content, particularly telenovelas, which are highly popular both domestically and internationally. This has created a strong demand for traditional TV programming among Brazilian viewers. Furthermore, the popularity of live sports, especially football, has a significant impact on the Traditional TV & Home Video market in Brazil. The broadcasting rights for major sporting events are highly sought after by both traditional TV networks and streaming platforms. This has led to fierce competition and substantial investments in sports broadcasting, further driving the growth of the market.

Underlying macroeconomic factors: The growth of the Traditional TV & Home Video market in Brazil is also influenced by underlying macroeconomic factors. Despite facing economic challenges in recent years, Brazil remains one of the largest economies in the world. This provides a sizable consumer base with purchasing power to support the market. Additionally, the increasing penetration of internet access and smartphones in Brazil has facilitated the growth of streaming services. As more consumers gain access to high-speed internet and affordable smartphones, the demand for online content, including streaming services, is expected to continue to rise. In conclusion, the Traditional TV & Home Video market in Brazil is developing due to customer preferences for traditional TV and home video content, the increasing adoption of digital TV, the growth of streaming services, local special circumstances such as the popularity of telenovelas and live sports, and underlying macroeconomic factors such as Brazil's large population and increasing internet penetration.

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.

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