In Brazil, like in Latin America (LatAm), the DTH is leading the digital boom. Most Latin American territories are experiencing a surge in digital TV take-up, according to a new report from Digital TV Research. According to most global experts and research, the PayTV revenues globally will climb to over USD 200 billion in 2017, up by USD 23 billion on 2011 but up by only USD 2 billion (1 percent) on 2016, according to a study by Digital TV Research. Similar reports indicate that the DTH (DBS) revenues will overtake cable TV revenues in 2015. However, the total global market for paid video is expected to hit USD 371 billion by 2016.
Cable TV is still the king of PayTV but customers and markets are clearly moving beyond: with mobile and internet downloaded content, along with IPTV, taking a sizeable chunk of the customer’s wallet.
The PayTV services reached 14.3 million households in Brazil in May earlier this year, an increase of 2.41 percent over the previous month, with 336,400 additions, according to a report from the National Telecommunications Agency (Anatel), but competition is increasing from Broadband and Telecom players here, just as it is across the world.
The trends are obvious. The Mexican Federal Telecommunications Commission has confirmed that, by the end of 2011, the DTT investment had reached USD 70.9 million, an 81.5% increase year-by-year. Argentina will meet the original schedule for implementation of DTT and complete the analogue switch-off in 2019.
GROWTH & OPPORTUNITY
Undeniably, the market is growing, and so are options for the end-consumers. People are watching TV not just on Television, but on their computers and mobile phones. The younger generation, a big part of the population in LatAm, is accelerating the trend of watching video on mobile devices, like phones and tablets.
The future for PayTV industry is like a coin: one side is opportunity and the other side is challenge. Focusing on the opportunity, the potential for service providers to grow their sub base is phenomenal. More homes are getting TV, be it by cable or digital.
The next major scope for players is to expand operations to multi-city and have centrally managed operations. Both ways to grow will yield historically unparalleled scope for growth.
PayTV players, however, cannot be oblivious to the other side of the coin – the challenge. They have to gear up to compete with new players entering the market, be it Telecom companies or/and the Broadband service providers.
Traditional PayTV players have to gear up and adjust to changing dynamics, including the paradigm shift of delivery of content over the Internet, flexible packaging and pricing to compete with such players and integrating with various provisioning and mediation systems that are future-ready.
The future lies in not just changing and increasing delivery channels, making video available in an agnostic seamless manner to all gadget (TV, Mobile phone, Computer, Tablet). The future is for players who go beyond cable and digital TV to provide and enable Dual Play and Triple Play.
Customers expect their services (TV, Internet and/or Phone) to be provided by one service provider, and it is here that PayTV has to make its biggest leap of faith. Ironically, there is great scope for collaboration with the competition.
The biggest transition in terms of infrastructure, technology and systems will be the ability to meter and rate usage to minimize revenue leakage. The PayTV players of the future need to have one billing solution for multiple services.
Give them, bill them is the mantra. The future is calling… are you ready?
Dheeraj Pulluru is a consultant with SURE! (a Magnaquest product). SURE! is an internationally acclaimed player in comprehensive end-to-end Subscription Business Solutions for PayTV, Broadband and Cloud Computing businesses – through deployment of Metered Billing, CRM, Service Fulfillment, Value-Added Services, and Managed Services.