Mexico is one of the Latin American paradises for the entertainment industry on its various fronts. Being the tenth most populous country in the world, with 74.3 million internet users and 18.3 million connected homes, it has become the king of audio streaming, a dominant SVDO market and the leader of the gaming industry in Latam.
According to a study by Digital TV Research, in five years there will be 48.24 million SVOD subscribers in Latin America, more than double the 21.14 million registered at the end of 2017. By then, Mexico will represent 36 percent of the SVOD subscriptions of the region, with Brazil in second place contributing an additional 27 percent.
What will be reflected in regional revenues for OTT platforms that will reach 6.43 billion dollars a year at the end of the planned period. Specifically, in Mexico, the PWC consultant reported that revenues from OTT platforms in Mexico would grow 11.2 percent per year.
Netflix has become the preferred platform for Mexicans to consume streaming content by having a presence in 80.8 percent of the market, but the trend does not stop in a single-player, currently 73 percent of Mexican homes have at least one screen Smart, which opens up the possibility of consuming content from other content providers such as Disney + or Amazon Video in a short time.
The CIU firm believes that in the future the competition between Amazon Prime Video and Netflix among others, including Blim owned by Televisa, with 2.7 percent of the market; HBO Go with 1.5 percent, offered by the American cable network HBO; and Fox Premium, recently acquired by Disney, with 0.2 percent of subscribers, will increase steadily.
As for the consumption of OTT audio, Mexico also takes the lead. According to the consultant The CIU, as of the third quarter of 2018, 14.4 million OTT Audio subscriptions were counted. These are used by 57.2 percent of Internet users in the country, which means that the number of users of these platforms amounts to 47.3 million people.
We recommend you read: Growth of OTT in Mexico
One of the most revealing data is the position that Mexico occupies in the gaming market. With the site number 12 worldwide and above Brazil, Mexico is the country with the most profitable gamer market in Latin America, as indicated by the NewZoo consultancy specializing in the field of video games.
According to The Competitive Intelligence Unit (CIU), the market value of the video game industry in Mexico reached 27 thousand 32 million pesos in 2018, which represented an increase of 9.1 percent.
Don’t forget to read: Mexico leads the Gaming market in Latin America
More information about the connected Mexican market
Mexico is the tenth most populous in the world, with a GDP of 2.4 trillion dollars, of which telecommunications represent 3.4 percent. The northern half of the country has higher incomes and purchasing power, however the adoption of internet use at the national level is increasing in a general way, that indicates the National Survey on Availability and Use of Information Technologies in Households, carried out by The National Institute of Statistics and Geography (INEGI) in its section Internet users in Mexico according to connection equipment, 2018:
- 68.9 million smartphone users (92.7 percent)
- 24.2 million laptop users (32.6 percent)
- 23.8 million desktop users (32.0 percent)
- 13.2 million Tablet users (17.8 percent)
- 12.3 million Television users with access to a connected device (16.6 percent)
- 5.1 million video game console users (6.9 percent)
Unit noted that in the first quarter of 2019, each mobile user consumed an average of 2,066 megabytes (MB) per month, 99.3 percent more than reported in the same period last year.
Bringing content directly to Mexico is the most profitable option
In some parts of the world, companies turn to IXPs to connect to a wide range of networks from a single point and thus exchange local traffic quickly and easily. However, although the infrastructure is growing, in Mexico, it is not yet common to see these types of practices that facilitate the mass delivery of content.
Peering reduces overall IP transit costs and offers improved end-to-end network performance, speed, and reliability. IXPs will take a critical role in advancing the digital economy in which content providers demand increasing levels of interconnection to improve performance.
Once established, an IXP creates a local environment with dynamic copies of a wide range of services, such as domain name servers, root servers, time servers, and web and content caches. These localized services reduce bandwidth requirements, decrease latency, and increase the reliability of Internet access for local users.
Don’t forget to read: The most important FAQs about peering in Mexico
The peering is multi-beneficial for Mexico, reduces the cost of traffic exchange, produces fast connections locally, which is cheaper than interconnecting outside the country or in another city. Local services respond to faster-shorter distance between users.
It is the perfect companion of a cross-connection. Having both options can further improve network performance, if peering sessions fail, transit services through cross-connections will provide backup connectivity to peer networks – and vice versa. Having both connections means greater redundancy.
Operators have visibility into how much traffic is flowing over their port and where it is going, which avoids the frustration of oversold IP traffic routes.
Mexico needs to peering with content providers and other networks and vice-versa because as we have mentioned, this country represents a potential market for the entertainment industry.