Traditional TV & Home Video - South America

In South America, revenue in the Traditional TV & Home Video market market is projected to reach US$21.69bn in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 2.23%, resulting in a projected market volume of US$24.22bn by 2029.
The average revenue per user (ARPU) in South America is expected to amount to US$69.36.
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 South America is expected to amount to 325.7m users by 2029.
User penetration in the Traditional TV & Home Video market market in South America is expected to be at 75.7% in 2024.
Additionally, the average revenue per TV user (ARPU) in the Traditional TV & Home Video market market in South America is projected to amount to US$69.36 in 2024.
In South America, traditional TV and home video markets are increasingly challenged by the rise of streaming services, prompting shifts in viewing habits and advertising strategies.

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 South America is experiencing significant growth and development. Customer preferences in South America are shifting towards digital streaming services and online platforms for entertainment. This is driven by the increasing availability of high-speed internet connections and the growing popularity of smartphones and other digital devices. Customers are seeking convenience and flexibility, as they can now access a wide range of content anytime and anywhere. Furthermore, the younger generation in South America is more inclined towards digital platforms, as they are more tech-savvy and prefer on-demand content. Trends in the market show that traditional TV and home video services are facing stiff competition from digital streaming platforms such as Netflix, Amazon Prime Video, and local platforms like GloboPlay and Televisa. These platforms offer a vast library of movies, TV shows, and original content, catering to a diverse range of preferences. They also provide personalized recommendations and the ability to watch content on multiple devices, making them highly appealing to customers. Local special circumstances in South America also contribute to the growth of the Traditional TV & Home Video market. For example, in countries like Brazil and Argentina, where telenovelas (soap operas) have a huge following, streaming platforms are increasingly investing in producing original content to cater to this demand. Additionally, the availability of local content in native languages attracts a larger audience, especially in countries with a strong cultural identity. Underlying macroeconomic factors also play a role in the development of the Traditional TV & Home Video market in South America. The increasing disposable income and improving living standards in the region have led to a rise in consumer spending on entertainment. This, coupled with the affordability and accessibility of digital streaming services, has contributed to the growth of the market. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital platforms as people spent more time at home and sought entertainment options. In conclusion, the Traditional TV & Home Video market in South America is evolving rapidly due to changing customer preferences, the rise of digital streaming platforms, local special circumstances, and underlying macroeconomic factors. As more customers embrace digital entertainment options, traditional TV and home video services will need to adapt and innovate to remain competitive in this evolving market.

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.