Traditional TV & Home Video - Mexico

In Mexico, revenue in the Traditional TV & Home Video market market is projected to reach US$6.92bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.21%, leading to a projected market volume of US$7.35bn by 2029.
The average revenue per user (ARPU) in Mexico is anticipated to amount to US$71.83.
In a global context, the majority of revenue will be generated the United States, which is estimated at US$146.60bn in 2024.
The number of TV viewers in Mexico is expected to reach 101.2m users by 2029.
User penetration in the Traditional TV & Home Video market market in Mexico is projected to be at 74.4% in 2024.
Furthermore, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in Mexico is also expected to amount to US$71.83 in 2024.
In Mexico, the traditional TV and home video market is experiencing a shift as audiences increasingly favor streaming platforms over conventional broadcasting.

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 Mexico has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Mexico have shifted towards on-demand streaming services and digital content consumption. With the increasing availability of high-speed internet and affordable smartphones, more and more consumers are opting for online video streaming platforms such as Netflix and Amazon Prime Video. This trend is further fueled by the convenience and flexibility offered by these platforms, allowing users to watch their favorite shows and movies anytime, anywhere. Additionally, the younger generation in Mexico, who are more tech-savvy and accustomed to digital content, are driving the demand for streaming services. In addition to the rise of streaming services, the Traditional TV & Home Video market in Mexico is also influenced by local special circumstances. Mexico has a strong tradition of telenovelas, which are highly popular and have a dedicated fan base. These soap operas are broadcasted on traditional TV channels and continue to attract a large audience. Furthermore, live sports events, especially soccer matches, are a major driver for traditional TV viewership in Mexico. The passion for soccer in the country leads to high demand for live broadcasts, which are often available only on traditional TV channels. The underlying macroeconomic factors in Mexico also contribute to the development of the Traditional TV & Home Video market. The country has witnessed steady economic growth in recent years, resulting in an increase in disposable income. This allows consumers to spend more on entertainment, including TV and home video. Additionally, the growing middle class in Mexico has led to an expansion of the consumer base for the Traditional TV & Home Video market. Overall, the Traditional TV & Home Video market in Mexico is evolving to meet the changing customer preferences and local special circumstances. While streaming services are gaining popularity, traditional TV channels continue to cater to the demand for telenovelas and live sports events. The underlying macroeconomic factors support the growth of the market by providing consumers with the means to spend on entertainment. As technology continues to advance and internet access becomes more widespread, it is expected that the Traditional TV & Home Video market in Mexico will continue to adapt and thrive.

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.