The penetration of pay-TV will grow in Latin America this year according to latest report by Consejo Latinoamericano de Publicidad en TV Paga (LAMAC).
Over the last three years this growth reached a 52% with a total penetration of 35%, meaning that there are some 42.5 million homes with pay-TV options in this region.
In particular in Mexican pay-TV arena has been growing 34% over the last two years so reaching more than 10 million subscribers. Brazil over the last two years has seen a growth of 53%, meaning 28.6% of homes have this type of TV service. Chile experienced a growth of 22% in the time period and currently 55.6% of the country's homes already have pay-TV.
These growths are due to the increasing number of pay-TV low cost offerings such as DTH enabling pay-TV penetration to percolate through to all social classes, according to 'Todo TV News'.
According to LAMAC's president Gary McBride, the behaviour of pay-TV in this region shows countries such as Brazil, Mexico and Chile are reaching similar levels of penetration to those of Colombia and Argentina's where nearly 80% of the homes already have a pay-TV system.
"As a result of such rapid growth in the penetration of pay TV households in all Latin American countries, advertisers and advertising agencies will no doubt have to reassess the distribution of their advertising budgets to be consistent with these changes. Pay TV should be more relevant in its guidelines and the investment mix it handles," stated Gary McBride.
Sources: Universos Ibope 2009 to 2011 for Argentina, Brasil, Chile and Colombia,except Mexico and total figures for LATAM, which were estimated by LAMAC.