Thursday, November 6, 2014

Pay TV, Netflix and HBO concerned – Digital Freedom

Businessmen pay TV meeting in Miami (USA) warned Thursday that the VOD model or stream launched by Netflix is a “threat “for incumbents in an industry that moves annually more than 27,000 million in Latin America.

 
 

Ariel Barlaro Dataxis Latin American vice president, told Efe stakes who gets a market in Latin America currently has 53.7 million pay-TV subscribers, either Cable or satellite TV, with the “threat” of new services such as Netflix, which will soon be supported by a television power HBO .

 
 

“This industry, in the United States and Latin America, today wondering how it will be in the future,” added Barlaro executive of the company organizing the forum NextTV Latin America, bringing together hundreds of entrepreneurs in Miami.

 
 

He called over the top (OTT) as Neflix offer “a direct solution of entertainment” at a lower price, but depend on the “quality of internet you can have the user,” said David Guerra, vice president of Emerging Markets Communications (EMC), a global provider of terrestrial and satellite communications.

 
 

War told EFE that the new entrant has generated the suspicion of cable operators .


 
 

The transformation of this industry, Barlaro explained, “all links” with the United States to Latin America as the region has already taken the “programming, business model and US format.”


 
 

The millionaire business may be owned, according to the expert, “incumbents, new services such as Netflix and others will surely go to Latin America, directly or studies or media groups.”


 
 

Barlaro assured that both regions face the same dilemma, but while in the US the market for pay television was saturated, reaching 90% penetration in 2013, Latin America has been a “boom” in recent years to exceed 20% penetration in 2008 to 40% this year, with projections reaching 55% in 2018.

 
 

He added that US services like Netflix are causing disconnects for operators pay TV, while in Latin America has been “compensated” because the region does not have the levels of US penetration, and cable and satellite are “flourishing”.

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“Netflix is ​​becoming practically the fifth operator in Latin America,” he warned, however, the expert.


 
 

This American film and television platform online reached Latin America in 2011 and now has 3.3 million subscribers , according to this year’s Latin American Dataxis specialized in business company television.

 
 

In Latin America, Mexico’s America Movil and DirecTV US takes almost half of the market, with 14.3 and 12.3 million subscribers respectively and followed Mexico’s Televisa, with 8.4; Argentina’s Cablevision, with 3.5 million; and Spanish Telefonica, with 3 million.

 
 

The alerts in this industry jumped in mid-October when the American HBO announced that from 2015 would open US direct subscription to the end user, bypassing the traditional TV operators pay.


 
 

In the forum on Thursday, executives of television channels and cable operators were very cautious, after the announcement of HBO generate controversy in the industry.


 
 

The increasing competition, mainly from Netflix, Hulu and Amazon.com , and changes in consumer trends led HBO to dump their products online and bet on the market Video Streaming (broadcast).

 
 

“This convergence is ultimately for the benefit of the end user, that has awakened to the cable companies” to improve their services if they want to retain subscribers, Guerra said.

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