Latin America is set to become a major market for OTT video over the next decade, generating USD 8 billion in annual revenue by 2025, according to new research from TDG. The OTT market will account for 25 percent of all video viewed in Latin America in ten years' time, said the report, with growth driven by the dramatic improvement in broadband availability over the past decade. Consumers between the ages of 18-34 will account for almost two-thirds (65 percent) of all OTT viewing in ten years’ time, said TDG, creating tremendous opportunities for OTT vendors such as Netflix, which has recently invested heavily in original Spanish-language content specifically designed for this emerging market. “The fact that Netflix is expanding its efforts in the region should send a strong message to others that the potential of OTT in Latin America is real and the time for entry is now," said the report.
However, the report also cautioned that OTT video in Latin America still has to overcome a number of inhibiting forces, such as poor penetration of fixed broadband, widespread poverty and the dominance of legacy free-to-air broadcasters.