Traditional TV & Home Video - Central America

In Central America, revenue in the Traditional TV & Home Video market market is projected to reach US$1.24bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 2.34%, resulting in a projected market volume of US$1.39bn by 2029.
The average revenue per user (ARPU) in Central America is expected to amount to US$36.86.
In a global context, the majority of revenue will be generated the United States, with figures reaching US$146.60bn in 2024.
The number of TV viewers in Central America is anticipated to rise to 36.2m users by 2029.
User penetration in the Traditional TV & Home Video market market in Central America is expected to be at 63.7% in 2024.
Additionally, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Central America is projected to amount to US$36.86 in 2024.
In Central America, traditional TV and home video consumption is experiencing a gradual decline as streaming platforms gain popularity among younger audiences.

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 Central America is experiencing significant growth and development due to changing customer preferences, emerging trends, and local special circumstances. Customer preferences in Central America are shifting towards more on-demand and personalized content. Consumers are increasingly looking for flexibility and convenience in their viewing habits, opting for streaming services and video-on-demand platforms. This preference for on-demand content is driving the growth of subscription-based streaming services, which offer a wide range of TV shows, movies, and original content. Additionally, the demand for high-definition and 4K content is also on the rise, as consumers seek a more immersive and cinematic viewing experience. Trends in the market indicate a shift towards digital platforms and online streaming services. Traditional TV and home video formats are facing competition from digital platforms such as Netflix, Amazon Prime Video, and local streaming services. These platforms offer a vast library of content and the flexibility to watch anytime, anywhere. The convenience and affordability of these services are attracting a growing number of consumers, leading to a decline in traditional TV viewership and DVD sales. Local special circumstances in Central America, such as limited access to cable and satellite TV services in rural areas, have also contributed to the growth of digital platforms. Streaming services provide an alternative for consumers who do not have access to traditional TV services. The increasing availability of internet connectivity and the proliferation of smartphones have further facilitated the adoption of streaming services in the region. Underlying macroeconomic factors, such as improving internet infrastructure and rising disposable incomes, are also driving the growth of the Traditional TV & Home Video market in Central America. As internet penetration increases and the cost of internet services decreases, more consumers are gaining access to streaming platforms. Additionally, rising disposable incomes are enabling consumers to afford subscription-based services and invest in high-quality home entertainment systems. In conclusion, the Traditional TV & Home Video market in Central America is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards on-demand content, the rise of digital platforms, limited access to traditional TV services, and improving internet infrastructure are all contributing to 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.