According to UK-based Digital TV Research, the Latin American market for AVODs, which stands for Advertising Supported Video On Demand, free services such as Youtube, where the user has free access to one or more streaming content accompanied by advertisements, will overtake the SVODs market in the next five years.
The latter, which is soaring in both Africa and the Middle East, will continue to be the main source of OTT revenues in Latin America, reaching $10.1 billion in 2029, but will be surpassed by AVOD revenues.
Let’s go in order: the OTT sector, Over the top television, mode of distribution of television content from the Internet, is estimated to generate revenues of $17 billion in Latin America by 2029, which is $7 billion more than today, of which $2.8 billion will come from SVOD subscriptions, while $3.5 billion will be derived from AVOD platforms.
“We expect that Netflix, Disney+, Paramount+ and HBO Max will all launch hybrid AVoD/SVoD tiers in the region in the near term, one for Spanish-speaking Latin America and another for Brazil. These four platforms will be responsible for more than half of the region’s OTT revenues by 2029,” said Simon Murray, an analyst at the British company.
Locally, Brazilian streamer Globoplay will generate revenues of $1.6 billion by 2029, of which $1 billion will come from the AVOD market and $600 million from its SVOD service.
Photo Credits: Pxhere
