Brazilian regulators are predicting that 80% of households will have a pay-TV service within 10 years, representing a threefold-plus increase in penetration in that country. That means big opportunity for operators like Telefonica and Oi.
Today, just 24% of Brazil’s 55 million homes have pay TV, according to telecommunications regulator Anatel, meaning that the region's largest economy lags in adoption compared to places like Mexico (40% penetration) or Colombia (31%). America Movil’s Net Servicos de Comunicacao unit and DirecTV's Sky Brasil dominate the market, between them sharing 85% of the subscriptions, Anatel said.
However, an expanding economy and legislation that has opened up the pay-TV market to more competition from phone operators and others is expected to fuel the TV frenzy. Anatel is working on approval for 600 new requests for broadcast licences.
Applicants include Telefonica Brasil, which is planning to take full control of cableco TVA. Oi meanwhile is a triple-play provider that is planning an IPTV service to go with its existing satellite offering.