Broadband Connectivity & Technology Solutions Poised to Boost Video Services in Latin America

30 August 2016
  • The climate of video services in Latin America is changing as a young, dynamic middle class emerges and is proving to have a growing appetite for entertainment services.
  • The current content culture and demand of choice by audiences are forcing service providers to invest in broadband infrastructure, improvements of Wi-Fi connectivity, and quality of service.
  • Barbara Bessolo sees future trends in the region to continue to include an appetite for premium content and next-generation immersive experiences including 4K Ultra High Definition (UHD), High Dynamic Range (HDR), and Virtual Reality (VR) as Technicolor continues to figure out how to deliver this emerging generation of content to this emerging market of audiences.
bessolo

Barbara Bessolo, President of Technicolor’s Connected Home Division in Latin America

The emergence of a younger and more affluent middle class in many parts of Latin America is resulting in an appetite for entertainment – and a greater willingness to pay for it. 

This is one of the dynamics that helps explain why Over-The-Top (OTT) video is having such a profound impact on video service providers in the region. OTT TV and video revenues in Latin America will reach $3.59 billion in 2021, according Digital TV Research’s new Latin America OTT TV & Video Forecasts report. It represents more than 300 percent growth over the $1.15 billion that the market racked up in 2015.

Simon Murray, Principal Analyst at Digital TV Research notes that 2015 and 2016 are seminal years for Latin American OTT TV and video. “Several high profile platform launches from some very well-positioned companies have already take place – with more still to come,” Murray said.

The surge in OTT also is driving broadband services in Latin America. These and other factors are creating a paradigm shift for video services providers.

We recently had the opportunity to discuss the challenges and opportunities in the region with Barbara Bessolo, President of Technicolor’s Connected Home Division in Latin America. Here is what she had to say:

Q:  We’re seeing that the growth in video services is driving demand for broadband infrastructures around the world.  How have you seen video services evolve in your region (Latin America)?

Bessolo:  It is very interesting in Latin America over the past couple of years because we do see an increased need for broadband speed.  As you know, Latin America is a very heterogeneous continent – with 33 countries, two main languages.  There are a lot of changes that are being driven because of political situations – which obviously are driving dramatic economic changes.

That said, there is a very young, dynamic middle class with access to disposable income that is actually being spent on entertainment.  This is contributing to growing demand for broadband services to the home.  In other words, we are seeing that the population of Latin America is willing to pay for these kinds of services.  Related to this, we see a vibrant competition being introduced by new OTT players.  All of these forces are not only contributing to demand for broadband to the home, but also Wi-Fi and other services that help households access and experience the content they desire.  And that is where we are positioning Technicolor in Latin America.

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Q:  Which OTT Players are really making a difference in the region?  Is it global players like Netflix or homegrown regional service providers that are entering the field?

Bessolo:  That’s a very interesting question.  We don’t see many regional, homegrown software OTT players at this point.  Obviously, you can go to web portals and download local content in each of the countries.  But we are seeing that Netflix is coming to the region with international content – and it is coming big time.  It has rapidly become a very important player for Latin America.  It has not been without effort however.  There was quite a bit of controversy initially as they entered different countries because of licenses and prices; and the OTT provider was also looking for ways to make sure it was not going to be hacked.

But now we are seeing they have quite a robust position in the Latin American market, and as a result, we’re seeing that our customers – the network service providers – are thinking carefully about their options.  Many, instead of going against Netflix, are trying to integrate Netflix into their own solutions.  This provided new opportunities for Technicolor to work with our regional customers.  We not only have our own line of hardware – but also software – which we are offering as well as we see service providers integrate their services with OTT providers like Netflix.

Q:  Is the interest in broadband throughout the region causing service providers – whether they are cable, satellite, or telcos – to invest in improvements for broadband connectivity?

Bessolo:  Yes, absolutely.  A couple of years ago, I think they were still in denial.  Now everybody has embraced the competition in terms of quality of service.  The young middle class – the 13 through 15 year-olds – are not going to watch linear TV in a traditional manner, they are more likely to go to laptops or tablets to browse content – most likely through OTT.

Q:  You talked a little earlier about Wi-Fi connectivity.  Are you seeing that market rise and not just to support traditional forms of communication and web surfing, but also to access more robust broadband-intensive video services?

Bessolo:  Yes.  We’re seeing Wi-Fi integrated in everything. As a result, we’re seeing a lot of interest from consumers and service providers to find ways of engaging in Wi-Fi troubleshooting in the home. There is demand for making it very easy for the end consumer can access the content they want without incident to prevent consumer frustration, and reduce customer service phone calls and installation times.  There absolutely is a big demand for Wi-Fi and whoever can provide the leading edge on Wi-Fi technologies and troubleshooting at the consumer level has a big advantage with their customers.

Q:  What do you see as the major opportunities in the region and for Technicolor?

Bessolo:  In the long run, there is definitely a lot of opportunity around 4K, HDR, and new compression initiatives like HEVC.  Everybody is also talking about virtual reality, and we’re engaged with many customers about how to deliver all of these experiences to the home.

With regards to VR and other immersive experiences, I think nobody quite knows how it will be delivered to the home and how to make it an interactive experience with the family. For gaming, it’s quite clear:  you don’t have to have an interaction with the whole family.  But how do you make virtual reality an interactive experience when you’re watching a football game or a full movie?

Price and interaction with the rest of the family are the main two points we are trying to solve. We are engaging with our customers to find out how we can help them get there.

  • The climate of video services in Latin America is changing as a young, dynamic middle class emerges and is proving to have a growing appetite for entertainment services.
  • The current content culture and demand of choice by audiences are forcing service providers to invest in broadband infrastructure, improvements of Wi-Fi connectivity, and quality of service.
  • Barbara Bessolo sees future trends in the region to continue to include an appetite for premium content and next-generation immersive experiences including 4K Ultra High Definition (UHD), High Dynamic Range (HDR), and Virtual Reality (VR) as Technicolor continues to figure out how to deliver this emerging generation of content to this emerging market of audiences.
bessolo

Barbara Bessolo, President of Technicolor’s Connected Home Division in Latin America

The emergence of a younger and more affluent middle class in many parts of Latin America is resulting in an appetite for entertainment – and a greater willingness to pay for it. 

This is one of the dynamics that helps explain why Over-The-Top (OTT) video is having such a profound impact on video service providers in the region. OTT TV and video revenues in Latin America will reach $3.59 billion in 2021, according Digital TV Research’s new Latin America OTT TV & Video Forecasts report. It represents more than 300 percent growth over the $1.15 billion that the market racked up in 2015.

Simon Murray, Principal Analyst at Digital TV Research notes that 2015 and 2016 are seminal years for Latin American OTT TV and video. “Several high profile platform launches from some very well-positioned companies have already take place – with more still to come,” Murray said.

The surge in OTT also is driving broadband services in Latin America. These and other factors are creating a paradigm shift for video services providers.

We recently had the opportunity to discuss the challenges and opportunities in the region with Barbara Bessolo, President of Technicolor’s Connected Home Division in Latin America. Here is what she had to say:

Q:  We’re seeing that the growth in video services is driving demand for broadband infrastructures around the world.  How have you seen video services evolve in your region (Latin America)?

Bessolo:  It is very interesting in Latin America over the past couple of years because we do see an increased need for broadband speed.  As you know, Latin America is a very heterogeneous continent – with 33 countries, two main languages.  There are a lot of changes that are being driven because of political situations – which obviously are driving dramatic economic changes.

That said, there is a very young, dynamic middle class with access to disposable income that is actually being spent on entertainment.  This is contributing to growing demand for broadband services to the home.  In other words, we are seeing that the population of Latin America is willing to pay for these kinds of services.  Related to this, we see a vibrant competition being introduced by new OTT players.  All of these forces are not only contributing to demand for broadband to the home, but also Wi-Fi and other services that help households access and experience the content they desire.  And that is where we are positioning Technicolor in Latin America.

Subscribe today…

don’t get left out of our news and analysis

Subscribe

Q:  Which OTT Players are really making a difference in the region?  Is it global players like Netflix or homegrown regional service providers that are entering the field?

Bessolo:  That’s a very interesting question.  We don’t see many regional, homegrown software OTT players at this point.  Obviously, you can go to web portals and download local content in each of the countries.  But we are seeing that Netflix is coming to the region with international content – and it is coming big time.  It has rapidly become a very important player for Latin America.  It has not been without effort however.  There was quite a bit of controversy initially as they entered different countries because of licenses and prices; and the OTT provider was also looking for ways to make sure it was not going to be hacked.

But now we are seeing they have quite a robust position in the Latin American market, and as a result, we’re seeing that our customers – the network service providers – are thinking carefully about their options.  Many, instead of going against Netflix, are trying to integrate Netflix into their own solutions.  This provided new opportunities for Technicolor to work with our regional customers.  We not only have our own line of hardware – but also software – which we are offering as well as we see service providers integrate their services with OTT providers like Netflix.

Q:  Is the interest in broadband throughout the region causing service providers – whether they are cable, satellite, or telcos – to invest in improvements for broadband connectivity?

Bessolo:  Yes, absolutely.  A couple of years ago, I think they were still in denial.  Now everybody has embraced the competition in terms of quality of service.  The young middle class – the 13 through 15 year-olds – are not going to watch linear TV in a traditional manner, they are more likely to go to laptops or tablets to browse content – most likely through OTT.

Q:  You talked a little earlier about Wi-Fi connectivity.  Are you seeing that market rise and not just to support traditional forms of communication and web surfing, but also to access more robust broadband-intensive video services?

Bessolo:  Yes.  We’re seeing Wi-Fi integrated in everything. As a result, we’re seeing a lot of interest from consumers and service providers to find ways of engaging in Wi-Fi troubleshooting in the home. There is demand for making it very easy for the end consumer can access the content they want without incident to prevent consumer frustration, and reduce customer service phone calls and installation times.  There absolutely is a big demand for Wi-Fi and whoever can provide the leading edge on Wi-Fi technologies and troubleshooting at the consumer level has a big advantage with their customers.

Q:  What do you see as the major opportunities in the region and for Technicolor?

Bessolo:  In the long run, there is definitely a lot of opportunity around 4K, HDR, and new compression initiatives like HEVC.  Everybody is also talking about virtual reality, and we’re engaged with many customers about how to deliver all of these experiences to the home.

With regards to VR and other immersive experiences, I think nobody quite knows how it will be delivered to the home and how to make it an interactive experience with the family. For gaming, it’s quite clear:  you don’t have to have an interaction with the whole family.  But how do you make virtual reality an interactive experience when you’re watching a football game or a full movie?

Price and interaction with the rest of the family are the main two points we are trying to solve. We are engaging with our customers to find out how we can help them get there.

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