Written by

MDC Newsroom

30 Nov, 2020 3 minutes

Mexico is expected to surpass Brazil as the largest OTT market in Latin America by 2022, with revenues ranging from $698 million in 2019 to nearly $1.5 billion by 2024.

Mexico will overtake Brazil as the largest OTT market in Latin America by 2022.

PWC

To understand its growth, we should look at the adoption of Internet use at the national level, which continues to grow according to the National Institute of Statistics and Geography (INEGI). There are 80.6 million Internet users, representing 70.1% of the population aged six years or over. This figure reveals an increase of 4.3% points compared to those registered in 2018 (65.8%).

Internet access in Mexico will maintain a moderate growth of 2.6%, driven by increased access to the Internet, especially on mobile devices. In 2019 alone, 28.4 million megabytes (MB) are consumed, an increase of more than 100% since 2015, when consumption stood at 12.8 trillion MB.

It is estimated that the country has 86.5 million cell phone users and that nine out of ten cell phone users have a Smartphone.

48.3 million Smartphone users installed applications on their phones. Of these, 86.4% installed instant messaging applications, 80.8% to access social networks, and 69.6% installed applications to access audio and video content.

The content industry in Mexico

According to a survey published on October 26, 2020 by the Federal Institute of Telecommunications, about 28% of fixed Internet users have an Over-The-Top (OTT) account – such as Netflix, Blim, Amazon Prime Video, Claro Video, etc.

The PWC firm, in its Global Entertainment & Media Outlook report, points out that between 2019 and 2024, it is estimated that the Entertainment and Media industry in Mexico will have a compound annual growth (CAGR) of 2.27%. The Mexican market for OTT video services could generate revenues of 881 million dollars by the end of 2020, an increase of 26% compared to 2019.

For content providers and CDNs, the density of Mexican networks and the presence of an IXP in McAllen is an extremely viable option to reach their edge markets without the regulatory hassle and costly implementation of establishing a PoP inside of Mexico. For ISPs, content providers, and CDNs, starting at the border is the smartest way to enter Mexico.

MEX-IX peaks over 130G and sets a new record for peering with Mexico

MEX-IX peaks over 130G and sets a new record for peering with Mexico

Read the full report

Success stories include Limelight, Akamai, G-Core Labs, Cloudflare – among others. These CDNs are successfully covering most of Mexico and are offloading Dallas with a point of presence in McAllen and within Mexico.

Important facts about these CDNs:

Akamai

Delivers 15% -30% of Internet traffic wordlwide

Cloudflare

More than 20 million domains in its network around the globe

G-Core Labs

With +50 Tbps of network traffic capacity

Limelight

Is responsible for more +40 Tbps of network traffic capacity

These CDNs deliver content from the following platforms: Xbox, PlayStation, Nintendo, Fox, Spotify, Slack, Uber, Adobe, Universal, Disney +, and many others.

The MEX-IX enables service providers to operate more efficiently by offering improved end-to-end network performance, less latency, and greater reliability while reducing IP Transit costs.

The high density of Mexican operators with their own network at MDC McAllen makes this exchange point work as if it were within Mexico; creating an exceptional opportunity for IP service providers and content providers to exchange traffic with Mexico easily and efficiently. In addition, the platform invites Mexican operators to peer among themselves to improve their local performance.

Schedule a meeting with our Peering coordinator, we will be happy to discuss the historical data of the OTT market in Mexico and how the MEX-IX can be a fantastic option for the expected traffic.

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