Mexico OTT TV & Video Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico OTT TV & Video Market Analysis
The Mexican OTT TV and video market is expected to grow at a CAGR of 4.5% over the forecast period. Mexico has been witnessing a rapid development of convergence services of the internet and mobile devices, owing to the development of IT and media technologies and the spike in M&A activity over the past decade. The growth of the internet ecosystem consisting of cheap, powerful devices, communities of web entrepreneurs, and faster internet connections are factors that aid the increasing adoption of the OTT market in the country.
- The shifting consumer preference toward online content due to the increasing proliferation of high-speed internet in Mexico provides an impetus for market growth. Substantial investment flows by video streaming media companies, like Netflix, Amazon Prime, and Hotstar, led to an increase in the number of Pay-Tv subscribers.
- Mexico has become a prime focus for many subscription OTT services because of its improving digital infrastructure and the growing need for indoor entertainment during the coronavirus pandemic. Netflix is one of the most used platforms in the region. Its international competitors, Amazon Prime Video, Disney+, HBO Max, and Apple TV+, as well as local streaming services owned by major TV networks or telecom companies, Claro Video, Blim TV, and Globoplay, have an increasing demand in the region.
- The proliferation of streaming services and the fracturing of content libraries will ultimately force consumers to decide which platforms they value the most, which will create a unique opportunity for cheaper and free ad-supported platforms to gain market share among price-conscious consumers.
- The COVID-19 pandemic increased the time spent on video streaming apps, leading to a rise in growth opportunities for the region's OTT market. For instance, according to WarnerMedia, on average, Mexicans spent 244 minutes watching pay-TV between March 23 and 29, 2020, which is 28 minutes more than the average of 216 minutes between January 1 and March 15, 2020.
- Along with the impact on production, the pandemic took a toll on the consumer demand for display-integrated devices, likely exacerbated by the lockdown. Uncertainty regarding the possible length of the lockdown made it difficult to anticipate how and when a resurgence in the display industry would occur.
Mexico OTT TV & Video Market Trends
This section covers the major market trends shaping the Mexico OTT TV & Video Market according to our research experts:
OTT industry is expected to register a significant growth in the market
- The increasing penetration of high-speed Internet connectivity, wireless data plans, and the rapid availability of public Wi-Fi increased the demand for OTT in Mexico in different applications, including health, finance, e-commerce, education, and others.
- A massive increase in OTT uptake in Latin America is expected over the next five years, with regional revenues expected to increase significantly. Regional service providers, like Telefonica with its Movistar Play brand and Millicom Group with Tigo Star, capture a large share of the region's video market, thereby becoming leaders in quad-play solutions.
- However, the competition for revenues became fierce as global players like Netflix moved in. Amazon Video is becoming a key competitor for Netflix in the region in catching up on the local content.
- Moreover, to encourage and increase the presence of national content on video-on-demand platforms, Brazil's Ministry of Culture offers tax discounts to include Brazilian content. These tax reductions will depend on the number of Brazilian videos added to the catalogs. This will be an incentive for companies to lower their taxes and help the Brazilian movie and film production companies grow simultaneously.
SVOD is expected to witness significant growth opportunities in the forecasted period.
- The main factor responsible for the surge in the popularity of SVOD streaming platforms, like Netflix, Amazon Prime Video, Hulu, HBO, and Disney+, is that the user gets unlimited access to original and high-quality content on the go. This trend is also gaining popularity in emerging countries like India. Both Disney and Apple launched streaming services in recent years as more companies look to compete with Netflix in video streaming wars.
- Further, the growth of fiber infrastructure and 5G networks capable of handling the massive increase in digital traffic caused by increasing mobile use of media offerings is anticipated to powerfully drive the digitalization level of video production processes. Moreover, Apple's bundling of access for its hardware consumers will help ensure that subscriber numbers are high from the start. Instead, the limitations of their impact on traditional TV will be a function of the pace at which SVOD services increase spending on programming.
- In terms of regional penetration, the demand depends on various factors such as internet accessibility, low-cost internet, network infrastructure, preference for regional content, smartphone penetration, competitor brands' dominance, regulations related to allowed media, and spending preferences. With SVoD penetration in Mexico still startling low, there is a massive opportunity for expansion.
- In July 2022, ViX+, the premium tier Spanish-language streaming platform from TelevisaUnivision, launched in the US, Mexico, and Spanish-speaking Latin America. The platform kicks off with more than 10,000 hours of film, TV, and sport, offering more than 70 original series and films in the first year, and will carry live football league and tournament games, including the Champions League. In Mexico and Latin America, members can view live TV channels, including Distrito Comedia, while Mexico subscribers will additionally get Las Estrellas, Canal 5, TUDN, and Nu9ve.
Mexico OTT TV & Video Industry Overview
The Mexico OTT TV and video market is fragmented and has some major players who adopt various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others, to strengthen their position in the market. Some major players include Netflix, Amazon Prime Video, Moviestar Play, Claro Video, and Blim.
- May 2022: OTTera, a white-label OTT and FAST Channel service, confirmed a partnership with TV Azteca to deliver TV Azteca's Pay TV channels to Samsung TV Plus in Mexico. This strategic alliance with OTTera is expected to provide a greater distribution of the TV Azteca channel portfolio with Samsung and, in the near future, with other smart TV producers in Mexico and LATAM.
Mexico OTT TV & Video Market Leaders
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Netflix
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Amazon Prime Video
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Blim
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Movistar Play
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Claro Video
*Disclaimer: Major Players sorted in no particular order
Mexico OTT TV & Video Market News
- March 2022: TelevisaUnivision's new streaming service ViX, which brings the world's largest offering of Spanish-language entertainment, news, and sports content, became available to all users in the United States, Mexico, and most Spanish-speaking Latin America. ViX users can stream original programming and top live sports and news free of charge in the first broadcast-quality ad-supported offering for Mexico.
Mexico OTT TV & Video Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Value Chain Analysis
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products and Services
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Impact of Covid-19 on the Market
- 4.5 Base Indicator Analysis (Including Internet penetration, smart phones, and other streaming devices)
- 4.6 Video Business Models in Mexico (TV Everywhere, Transactional, Subscription, Free, Hybrid)
- 4.7 Stakeholders in the Video and OTT Market in Mexico (Cable Operators, Programmers, Independent Platforms etc.)
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 High Penetration of Smart TVs and the Presence of Major OTT Providers
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5.2 Market Restraints
- 5.2.1 Payment for Premium OTT Take-up
- 5.2.2 Challenges and Costs of Licensing Premium Quality Content
6. MARKET SEGMENTATION
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6.1 By Source
- 6.1.1 SVOD
- 6.1.2 TVOD
- 6.1.2.1 Rental
- 6.1.2.2 Download to Own (DTO)
- 6.1.3 AVOD
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles (Major OTT providers operating in the region)
- 7.1.1 Netflix
- 7.1.2 Amazon Prime Video
- 7.1.3 Blim
- 7.1.4 Movistar Play
- 7.1.5 Claro Video
- 7.1.6 Crackle
- 7.1.7 HBO
- 7.1.8 Disney+
- 7.1.9 Apple TV+
8. Mexico OTT Market Outlook
Mexico OTT TV & Video Industry Segmentation
OTT services are touted to be a major disrupter in the field of media and entertainment, as they bypass traditional methods, such as cable, broadcast, and satellite platforms, to directly offer services to customers through the internet.
| By Source | SVOD | |
| TVOD | Rental | |
| Download to Own (DTO) | ||
| AVOD |
Mexico OTT TV & Video Market Research FAQs
What is the current Mexico OTT TV and Video Market size?
The Mexico OTT TV and Video Market is projected to register a CAGR of 4.5% during the forecast period (2024-2029)
Who are the key players in Mexico OTT TV and Video Market?
Netflix, Amazon Prime Video, Blim, Movistar Play and Claro Video are the major companies operating in the Mexico OTT TV and Video Market.
What years does this Mexico OTT TV and Video Market cover?
The report covers the Mexico OTT TV and Video Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico OTT TV and Video Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico OTT TV and Video Industry Report
Statistics for the 2024 Mexico OTT TV and Video market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico OTT TV and Video analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
