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Mexico OTT TV and Video Market Size (2024 - 2029)

The Mexican OTT TV and video market is experiencing growth driven by the increasing adoption of online content, facilitated by the expansion of high-speed internet and the proliferation of affordable devices. The development of digital infrastructure and the rising demand for indoor entertainment, particularly during the pandemic, have made Mexico a key focus for subscription OTT services. This market expansion is further supported by significant investments from major streaming companies, which have contributed to a rise in Pay-TV subscriptions. The competitive landscape, characterized by a variety of local and international streaming platforms, is prompting consumers to prioritize their preferred services, creating opportunities for cost-effective and ad-supported platforms to capture market share.

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Market Size of Mexico OTT TV and Video Industry

CAGR
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

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*Disclaimer: Major Players sorted in no particular order

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 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
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Mexico OTT TV and Video Market Size Summary

The Mexican OTT TV and video market is experiencing significant growth, driven by the rapid development of internet and mobile device convergence services. This growth is supported by advancements in IT and media technologies, as well as increased merger and acquisition activities. The expanding internet ecosystem, characterized by affordable and powerful devices, vibrant web entrepreneur communities, and faster internet connections, is facilitating the rising adoption of OTT services in Mexico. The shift in consumer preference towards online content, fueled by the proliferation of high-speed internet, is further propelling market expansion. Major video streaming companies like Netflix, Amazon Prime, and Hotstar are investing heavily in the region, contributing to the increase in Pay-TV subscribers. The COVID-19 pandemic has also played a role in boosting the OTT market, as it led to a surge in video streaming app usage and heightened demand for indoor entertainment.

The market landscape is becoming increasingly competitive, with both international and local streaming services vying for market share. Platforms such as Netflix, Amazon Prime Video, Disney+, HBO Max, and Apple TV+ are gaining traction, alongside local services like Claro Video, Blim TV, and Globoplay. The fragmentation of content libraries is prompting consumers to choose their preferred platforms, creating opportunities for cheaper, ad-supported services to attract price-sensitive users. The growth of fiber infrastructure and 5G networks is expected to enhance digitalization in video production processes, further driving market growth. Despite the competitive environment, there remains a substantial opportunity for expansion in the SVOD segment, given its relatively low penetration in Mexico. Strategic partnerships, such as OTTera's collaboration with TV Azteca, and new service launches, like TelevisaUnivision's ViX, are indicative of the dynamic nature of the market, as key players employ various strategies to strengthen their market positions.

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Mexico OTT TV and Video Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Value Chain Analysis

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products and Services

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Impact of Covid-19 on the Market

    5. 1.5 Base Indicator Analysis (Including Internet penetration, smart phones, and other streaming devices)

    6. 1.6 Video Business Models in Mexico (TV Everywhere, Transactional, Subscription, Free, Hybrid)

    7. 1.7 Stakeholders in the Video and OTT Market in Mexico (Cable Operators, Programmers, Independent Platforms etc.)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Source

      1. 2.1.1 SVOD

      2. 2.1.2 TVOD

        1. 2.1.2.1 Rental

        2. 2.1.2.2 Download to Own (DTO)

      3. 2.1.3 AVOD

Mexico OTT TV and Video Market Size FAQs

The Mexico OTT TV and Video Market is projected to register a CAGR of 4.5% during the forecast period (2024-2029)

Netflix, Amazon Prime Video, Blim, Movistar Play and Claro Video are the major companies operating in the Mexico OTT TV and Video Market.

Mexico OTT TV and Video Report Snapshots

Mexico OTT TV and Video Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)