Traditional TV & Home Video - Chile

In Chile, revenue in the Traditional TV & Home Video market market is projected to reach US$2.03bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.80%, resulting in a projected market volume of US$2.11bn by 2029.
The average revenue per user (ARPU) in Chile is expected to amount to US$129.40.
In global comparison, most revenue will be generated the United States, which is projected to reach US$146.60bn in 2024.
The number of TV Viewers in Chile is expected to amount to 16.2m users by 2029.
User penetration in the Traditional TV & Home Video market market in Chile is expected to be at 79.8% in 2024.
The average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Chile is projected to amount to US$129.40 in 2024.
In Chile, the decline of traditional TV viewership is prompting media companies to pivot towards streaming services to capture a more digitally-focused audience.

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 Chile has been experiencing significant growth in recent years.

Customer preferences: Chilean consumers have shown a strong preference for traditional TV and home video content. Despite the rise of digital streaming platforms, many Chileans still enjoy the experience of watching their favorite shows and movies on traditional television sets or through physical media such as DVDs and Blu-ray discs. This preference can be attributed to several factors, including the cultural significance of television in Chilean society and the perceived higher quality of content on traditional platforms.

Trends in the market: One of the key trends in the Traditional TV & Home Video market in Chile is the increasing demand for high-definition content. As the availability of HD televisions and home theater systems grows, consumers are seeking out content that can fully utilize these technologies. This has led to a rise in the production and distribution of HD content, both in terms of television programming and home video releases. Additionally, there has been a noticeable shift towards digital distribution channels, with more consumers opting to purchase or rent movies and TV shows online rather than through physical media.

Local special circumstances: Chile has a strong tradition of producing high-quality television content, with many popular shows and telenovelas being exported to other Latin American countries. This has created a demand for traditional TV and home video products in Chile and has contributed to the growth of the market. Furthermore, the relatively high cost of internet access in Chile compared to other countries in the region has also played a role in the continued popularity of traditional TV and home video. Many Chileans still rely on traditional television and physical media as their primary source of entertainment due to limited access to affordable and reliable internet connections.

Underlying macroeconomic factors: Chile has experienced steady economic growth in recent years, which has contributed to increased consumer spending power. As a result, more Chileans are able to afford traditional TV sets, home theater systems, and physical media. Additionally, the government has implemented policies to promote the local production of television content, which has further stimulated the market. The stability of the Chilean economy and the relatively high levels of disposable income have created a favorable environment for the Traditional TV & Home Video market to thrive. In conclusion, the Traditional TV & Home Video market in Chile is experiencing growth due to customer preferences for traditional platforms, increasing demand for high-definition content, local special circumstances such as the strong tradition of television production and limited access to affordable internet, and underlying macroeconomic factors such as steady economic growth and government support for the industry.

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.