Multiplay households to reach 144.5m in Americas by year-end 2016

19 May 2016

Pyramid Research expects multiplay penetration of households in the Americas to reach 46.3% by year-end 2016, with Latin America accounting for 37.2% of the total multiplay households 

According to a new report by Pyramid Research, the number of households subscribing to multiplay services in the Americas will reach 144.5 million in 2016, representing a multiplay penetration of households of 46.3%, well above the global average of 24.7%. There are, however, strong differences across the region: in North America, multiplay service penetration will reach 63.7% by year-end 2016, in Latin America, it will stay just below the 33% mark. Despite its low level of development, Latin America is poised for strong growth with multiplay service penetration projected to reach 39.1% by year-end 2020. Growth will be mainly driven by the increasing demand for multiplay service bundles in countries such as Brazil, Mexico, Colombia and Argentina. “Although we observe a general growth opportunity for multiplay services in Latin America, countries within the region are at different stages of maturity. In Brazil, operators such as Claro and Vivo are already pushing fixed-mobile convergence and quad-play offers, while in Colombia and Argentina, quad-play bundles are still non-existent,” says Marcelo Kawanami, senior analyst at Pyramid Research.

Fiber-optics driving multiplay service growth

The deployment of FTTH/B services in some Latin American countries, such as Brazil, Mexico, Colombia and Argentina will allow telecom operators to roll out IPTV services and advanced OTT media platforms, improving their position in the residential market and adding pressure on cable operators offering triple-play services. “IPTV is an attractive service to bundle with FTTH/B broadband as the customer can enjoy the advantage of higher bandwidths through the consumption of content,” says Kawanami.

From traditional bundles to smart living solutions

The report analyzes the different strategies adopted by service providers in the Americas to attract new multiplay users:  While in Latin America telcos and cable operators tend to rely on aggressive price discounts, in North America, the trend is to focus on developing innovative value-added services beyond the traditional telco-pay-TV sphere in order to improve customer’s perception of value. “Smart living and connect-home solutions are already being offered as part of residential service bundles in multiplay service markets in the US and Canada. By positioning these services as value-added, operators can increase the customer perception of value beyond the traditional telecom and media services proposition, increasing customer loyalty,” says Kawanami.

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All information in this text is based on the Pyramid Research report 'Multiplay in the Americas: Value-Added Services Increasingly Integral to the Multiplay Value Proposition' published in March 2016

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