2 Table of Contents 1. Argentina 1.1 Free-to-Air market Households with TV sets and FTA reception Chart 1. Households with TV sets (millions) and penetration over total households (%). Argentina, Chart 2. Households with FTA (millions) and penetration over total households with TV sets (%). Argentina, FTA revenues Chart 3. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Argentina, Distribution strategies of main broadcasters El Trece Table 1. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of El Trece. Argentina, Telefe Table 2. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Telefe. Argentina, TV Pública Digital Table 3. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of TV Pública. Argentina, Canal 9 Table 4. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 9. Argentina, América TV Table 5. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of América TV. Argentina, Brazil 2.1. Free-to-Air market Households with TV sets and FTA reception Chart 4. Households with TV sets (millions) and penetration over total households (%). Brazil, Chart 5. Households with FTA (millions) and penetration over total households with TV sets (%). Brazil,
3 FTA revenues Chart 6. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Brazil, Distribution strategies of main broadcasters Rede Globo Table 6. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Rede Globo. Brazil, Rede Record Table 7. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Rede Record. Brazil, Rede Bandeirantes Table 8. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Band. Brazil, RedeTV! Table 9. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, 3D, catch-up TV and international distribution strategies of RedeTV! Brazil, SBT Table 10. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of SBT. Brazil, Chile 3.1. Free-to-Air market Households with TV sets and FTA reception Chart 7. Households with TV sets (millions) and penetration over total households (%). Chile, Chart 8. Households with FTA (millions) and penetration over total households with TV sets (%). Chile, FTA revenues Chart 9. FTA TV advertising expenditure and percentage over total ad spend (%). Chile, Distribution strategies of main broadcasters TVN (Televisión Nacional de Chile) Table 11. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of TVN. Chile, 2013.
4 Canal 13 Table 12. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 13. Chile, Chilevisión Table 13. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Chilevisión. Chile, Mega Table 14. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Mega. Chile, Colombia 4.1. Free-to-Air market Households with TV sets and FTA reception Chart 10. Households with TV sets (millions) and penetration over total households (%). Colombia, Chart 11. Households with FTA (millions) and penetration over total households with TV sets (%). Colombia, FTA revenues Chart 12. FTA TV advertising expenditure and percentage over total ad spend (%). Colombia, Distribution strategies of main broadcasters Caracol TV Table 15. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Caracol TV. Colombia, RCN Televisión Table 16. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of RCN Televisión. Colombia, Mexico 5.1. Free-to-Air market Households with TV sets and FTA reception Chart 13. Households with TV sets (millions) and penetration over total households (%). Mexico, Chart 14. Households with FTA (millions) and penetration over total households with TV sets (%). Mexico, FTA revenues Chart 15. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Mexico,
5 5.2. Distribution strategies of main broadcasters Canal de las Estrellas Table 17. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal de las Estrellas. Mexico, Canal 5 Table 18. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 5. Mexico, Gala TV Table 19. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Gala TV. Mexico, Azteca Trece Table 20. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Azteca Trece. Mexico, Azteca 7 Table 21. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Azteca 7. Mexico, Peru 6.1. Free-to-Air market Households with TV sets and FTA reception Chart 16. Households with TV sets (millions) and penetration over total households (%). Peru, Chart 17. Households with FTA (millions) and penetration over total households with TV sets (%). Peru, FTA revenues Chart 18. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Peru, Distribution strategies of main broadcasters América Televisión Table 22. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of América Televisión. Peru, ATV (Andina de Televisión) Table 23. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of ATV. Peru, Frecuencia Latina Table 24. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Frecuencia Latina. Peru, 2013.
6 Panamericana Televisión Table 25. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Panamericana. Peru, Conclusions 7.1. Households with TV sets and FTA reception Chart 19. Households with TV sets (millions) and penetration over total households (%). Latin America, Chart 20. Households with TV sets. Market share per country (%). Latin America, Chart 21. Households with FTA (millions) and penetration over total households with TV sets (%). Latin America, Chart 22. Households with FTA. Market share per country (%). Latin America, FTA revenues Chart 23. FTA TV advertising expenditure. Market share per country (%). Latin America, Distribution strategies of Latin American broadcasters Table 26. FTA TV broadcasters actively implementing DTT, HD, Pay-TV, mobile TV, online simulcast, catch-up TV, international distribution and social networking strategies. Latin America, 2013.
7 Study Structure and Methodology This report is entitled New strategies for FTA broadcasting in Latin America, and was completed in May It offers a detailed analysis of the progress that FTA TV stations are making towards adapting their traditional broadcast operations to meet changing expectations placed on them by regulators, the advent of digital HD broadcasting technology and new generations of viewers demanding anywhere, anytime and anyhow access to audiovisual content. The work is organized around six country-specific chapters covering Argentina, Brazil, Chile, Colombia, Mexico and Peru. The top 25 FTA broadcasters operating throughout these key Latin American markets were analyzed, while a final chapter was used to provide total regional figures and our conclusions. Each country-specific chapter was subdivided into two main sections. The first one analyzes the historical ( ) and projected ( ) size of the FTA TV market in each country. Additionally, it includes annual advertising revenues collectively generated by FTA broadcasters between 2008 and The second section of each country chapter offers a detailed description of the work that the main broadcasters with nationwide analog coverage are carrying out in terms of: migrating towards digital terrestrial television (DTT) broadcasting; expanding their distribution over local pay-tv systems; simulcasting mobile TV channels using 1-Seg technology; migrating their full programming schedule to native HD production and transmission; deploying a catch-up TV strategy; offering a live online simulcast of their digital feeds; expanding their international distribution; and complementing their broadcast and VOD strategies with social networking activities. The criterion used to select the top FTA broadcasters in each country was the annual audience ratings recorded by the main stations with nationwide coverage in Historical figures used in this report were extracted from Dataxis Global Database. Forecasts were made in April 2013, and are also partly available in Dataxis Global Database. Unless specified, all financial figures (including advertising expenditure) were expressed in United States Dollars in order to provide a unified regional criterion.
8 Executive Summary At the end of 2012, over 130 million households in Latin America s seven largest TV markets had at least one TV set. Of those, households relying only on free-to-air (FTA) TV reception still accounted for 62.7% (or 81.6 million households). This figure also included households with illegal pay-tv access or underreported pay-tv subscriptions. However, as legal pay-tv services continued to enjoy high demand, Dataxis forecast that FTA TV and pirated connections would diminish markedly by 2018, accounting for less than one-third of TV homes in the region. Annual advertising revenue generated by FTA broadcasters in six countries analyzed (Argentina, Brazil, Chile, Colombia, Mexico and Peru) totaled USD 15.8 billion. Compared with 2011, this represented a decrease of 9.3%, which was mainly explained by the devaluation of the Brazilian Real and the Mexican Peso in Brazilian broadcasters had obtained the largest share of such revenue: over 61% of total TV ad spend. Broadcasters from Latin America s two other large TV markets, Mexico and Argentina, had respectively obtained 18.1% and 10.9% of regional FTA TV ad spend. As of May 2013, 100% of the top-25 FTA TV stations across the six countries analyzed had begun broadcasting a digital terrestrial television (DTT) version of their analog TV networks. In most cases, digital broadcasts were still officially treated as experimental, given that analog transmissions had not yet been switched off in any country. Over 90% of the FTA stations surveyed were broadcasting at least a portion of their programming schedule in native HD quality. Only two broadcasters had not yet launched any native HD content transmissions: América TV in Argentina and Panamericana Televisión in Peru. While several of the networks were making significant progress towards simulcasting 100% of their weekly programming grid in native HD broadcasting, only one station (Brazil s RedeTV!) had actually managed to achieve this. RedeTV! was also Latin America s only FTA broadcaster to be already offering a 3DTV version of its main channel a world first in the FTA TV industry. Whereas the SD version of all of the FTA digital TV channels analyzed was being carried by at least one and, in most markets, several pay-tv operators, the HD version of three different networks was still not included in the channel lineup of any pay-tv service providers. As of May 2013, 56% of the broadcasters profiled across the six countries analyzed were actively simulcasting a mobile TV version of their DTT channels using the 1-Seg standard.
9 Of the 21 broadcasters that were simulcasting their live FTA feeds over the Internet, 20 were offering the service free of charge to domestic viewers, and 18 were also offering the live streaming service free of charge to users accessing it from a foreign country. Only one of the 25 broadcasters surveyed (Canal 9 of Argentina) did not have a catchup TV strategy in place to allow viewers to watch past episodes (or even highlights) from the network s recent programming schedule. Of the 24 Latin American broadcasters that had deployed a catch-up TV platform, two (Globo in Brazil and Caracol in Colombia) were charging for the service, while all remaining VOD offerings were free of charge. A select group of Latin American FTA broadcasters had begun to strike deals with smart TV, tablet and smartphone manufacturers, and to commission the development of software and applications that were allowing their TV programming to be accessible anywhere and anytime over those devices. Broadcasters leading this market included Globo and SBT in Brazil, TVN in Chile, Canal 13 in Argentina, América Televisión in Peru and Caracol TV in Colombia. Argentina and Colombia were the only two FTA TV markets where all of the broadcasters analyzed had an international distribution strategy in place. Televisa was the only major Latin American FTA TV broadcaster analyzed that did not have an institutional social networking presence on services such as Facebook, Twitter or YouTube. However, this did not mean that viewers of Televisa s FTA TV channels were not able to share their views and experiences over social networking sites, as the broadcaster had instead created a wide range of Facebook pages and Twitter accounts that were specifically designed for individual soap operas and other popular TV programs.
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