Latin American Direct-to-Home Satellite Television Services Markets

The Latin American Direct-to-Home (DTH) satellite television services industry has made great strides and continues to show promise, despite the region's recent economic upheavals. Two companies, Sky and DIRECTV Latin America, battle for supremacy in this market; both have established a strong presence despite adopting different strategies. While Sky has focused on a few key country markets, DIRECTV Latin America has concentrated on building a broader customer base spread across 28 countries. Both companies have a nearly even spilt of the region's 1.6 million DTH subscribers and are battling mightily to expand their respective market share.

This Frost & Sullivan research examines the pay television (TV) services and companies in Latin America. In particular, it provides detailed forecasts of DTH subscribers and revenues for the whole region as well as for five individual countries. This study also provides an extensive overview of the competitive landscape for satellite, cable and wireless cable (MMDS) services.

DTH Providers Must Find Solutions to Prevailing Economic Difficulties

The economic turmoils that have gripped Latin America in recent years have dealt a serious blow to the overall pay TV industry. Cable and MMDS operators throughout the region are facing flat growth at best. Although many DTH service providers have exhibited considerable growth in subscriber numbers, rising operational and other costs have consistently blocked their path to profitability.

Clearly, DTH service providers must boost falling investor confidence and concentrate on country-specific programming if they are to achieve success. "DTH service providers must demonstrate a business plan that focuses on investor value and takes into consideration the unique aspects of each country's governmental, political, and regulatory situation," says the analyst.

Integration of Interactive Services Essential to Counter Threat from Improved Cable TV Systems

The introduction of new, high-quality digital cable TV systems poses a threat to DTH services. DTH providers must aim at establishing a mutually beneficial, long-term relationship with their customers. Enhancing basic DTH service packages with interactive capabilities is one way of giving greater value and earning customer loyalty. "The integration of interactive services is essential to remain competitive as more terrestrial service providers offer bundles of services - telephony, Internet access, and pay TV - in markets throughout Latin America," says the analyst.