An Overview of the Growth of Connected TV & FAST Channels in Latin American Countries
Free Ad-Supported Streaming Television (FAST) has emerged as a transformative force in how users consume content. Industry experts have been claiming the rising growth and adoption of FAST channels; the studies also add more proof to their statements.
The recent report published by Amagi Global FAST Report Edition #8 has highlighted the patterns of significant growth rates and adoption of FAST in Latin America (LATAM).
Factors Influencing FAST’s Rise in LATAM:
Free Ad-supported Streaming Television (FAST) is revolutionising video consumption worldwide, offering a compelling alternative to Subscription Video On Demand (SVOD), Premium Video On Demand (PVOD), and other traditional models.
By Jan 2023, there were more than 230+ FAST Channels, including 20 LATAM channels, 17 African channels, and 17 Indian channels. The number is expected to grow faster due to this adoption.
The growth of FAST Channels is evident in LATAM, confirmed by the Amagi Consumer Survey and Amagi ANALYTICS findings. Let’s delve deeper into the elements spurring FAST’s growth.
The main reason for adopting FAST for many households is its cost-effectiveness.
Research by Magnite indicates that 71% of LATAM’s existing pay-TV subscribers are open to transitioning to an ad-driven streaming model, accepting advertisements in exchange for complimentary content.
Improved and Easy Availability:
The adoption of devices like Connected TVs (CTVs) and smartphones is skyrocketing in LATAM.
The data extracted from the collaborative survey by Comscore and IAB Argentina unveils that CTVs have reached a vast audience of over 150 million, capturing an impressive 41% of the combined populace in nations like Chile, Colombia, Mexico, Peru, and Uruguay. CTVs are also the preferred streaming device in countries like Brazil, Mexico, and Argentina, with nearly 97% of households possessing one.
Additionally, by 2025, it’s projected that around 73% of LATAM’s population will use smartphones, amplifying the reach of FAST.
These statistics are promising for content developers, streaming platforms, and advertisers. The data suggests that a growing segment of LATAM’s populace will be increasingly receptive to tailored advertisements.
Notably, a significant 88% of viewers of ad-supported streams are more likely to buy from brands they regularly interact with across various devices.
Wide Range of Choices:
Diversity in content is something LATAM viewers highly value. Fortunately, FAST delivers on this front. Feedback from an overwhelming 96% of ad-supported streaming viewers indicates that streaming platforms provide a more range of entertainment and programming than traditional cable TV.
Highlights of Year-on-Year Growth of FAST Analytics Insights
The FAST landscape in LATAM has witnessed the following:
- FAST Channels experienced 150% growth in ad impressions.
- A substantial 45% increase in channel deliveries highlights the expanding footprint of this platform in the region.
- 7% growth in Hours of Viewing
Country-Specific Metrics with Hours of Viewing
- Peru: An overwhelming 1,829% growth in Hours of Viewing (HOV).
- Chile: A commendable 948% surge in HOV.
- Colombia: A noteworthy 744% increase in HOV.
- Argentina: A two-pronged success with a 405% growth in HOV and a 657% escalation in ad impressions.
- Mexico: A balanced 14% growth in HOV coupled with a 238% rise in ad impressions.
Channel Deliveries: A Country-wise Breakdown
The distribution of channel deliveries further elucidates the FAST landscape:
- Brazil leads with 54%, followed by Mexico and Colombia at 43%.
- Argentina is close behind at 42%, with Peru and Chile at 35% and 33% respectively.
Understanding the Audience Preferences
Diving into genre preferences offers a window into the audience’s psyche:
- Movies and Series: Experienced a 50% increase in viewing hours and a 47% ascent in ad impressions.
- Lifestyle: A prominent second, accounting for 30% of ad impressions and 19% of viewing hours.
- Music: Holding its ground with a 9% share in viewing hours and 5% in ad impressions. It is also noted that Samsung exclusively launched music-based FAST channels like HITS Mexicanos and Danger TV in Samsung TV Plus.
Connected TVs Fueling LATAM’s FAST Revolution
Connected TVs (CTVs) have been a significant part of FAST’s rise across LATAM.
In analysing Brazil and Mexico, in this space, the CTV penetration rates are higher:
- Among respondents who tuned into TV at least once in the past week, Brazil recorded a CTV adoption rate of 94%.
- Mexico closely followed with a 93% rate.
- To contextualise these figures, the US, a mature FAST market, sits at a CTV adoption rate of 80.6%.
The Streaming Preference Tilt: SVOD vs. FAST
While Subscription Video on Demand (SVOD) remains dominant, with 61% preference in Brazil and 68% in Mexico, there’s a noticeable shift towards FAST.
The US, for comparison, has 72% of its households leaning towards SVOD. Yet, when diving into FAST adoption, The US stands tall with a 42% rate.
Although still early in their FAST journeys, Brazil and Mexico showcase promising trajectories.
Financial Challenges in Testing Times: Choices during Economic Downturns
When economic tides turn, spending habits undergo scrutiny. Through the lens of the survey, in Brazil and Mexico:
- 34-43% chose to discontinue their TV subscriptions as an immediate cost-cutting measure.
- Cell phone services were the next on the chopping block, with 21-30% opting for discontinuation.
- Travel expenses were curtailed by 24-26% of respondents.
On the contrary, US households displayed different priorities:
- A significant 48% chose to cut back on travel first.
- TV subscriptions followed at 33%.
- Cellphone services saw a reduction from 13% of households.
With the economy on the brink, this also significantly contributes to the rising adoption of FAST Channels.
To conclude, the data-driven insights from the report are undeniable: LATAM is on the ridge of a FAST revolution.
With technological strides intersecting with shifting viewer propensities, LATAM is poised to etch its mark on the global FAST narrative.
For stakeholders, be it industry veterans, budding content creators, or advertisers, LATAM is a goldmine of opportunities ripe for exploration.
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
Holding an Engineering degree, Ragul's career took an unconventional turn when he discovered his passion for writing, leading him to begin his journey as a content writer.
His career has been exclusively dedicated to the growth and development of startups, where he has played a pivotal role. His unique blend of technical knowledge and creative prowess has enabled him to drive innovation and success in every venture he has been a part of.