The trajectory for broadcasting and streaming in Latin America
Latin American countries have witnessed radical changes when it comes to content consumption. Between 2019 and 2023, the video streaming sector grew by 22.87%. As the first of the digitally native generations, Millennials have significantly changed the content consumption landscape by expecting speed and quality, while Gen Z audiences have come to expect more immersive experiences.
These forces will continue to drive the adoption of Free Ad-supported Streaming TV (FAST) in the region, with the support of targeted intuitive advertising, high-quality programming, and a wide variety of content options to choose from.
Digitization
As per the GlobalWebIndex, a major part of the Latin American population is now consuming content through online media. Further, over 90% of the people in the region own smartphones, and over 70% own personal computers, with the highest penetration being amongst Gen Z. Such adoption has helped disrupt the traditional media market, prompting over 60% of the audience to avail video streaming services.
The effect of the pandemic on LATAM TV
Since internet penetration was already rising in the region, the pandemic acted as a catalyst in creating room for more online content consumption. CTV penetration is paving the way for increased FAST adoption. The LATAM-focused Amagi’s FAST report states that CTVs have entered more and more living rooms in the region, with Brazil at an impressive 94% and Mexico trailing at 93%. FAST is slowly yet steadily following suit, becoming more prominent across Brazil, Mexico, Columbia, Argentina, Peru, and Chile.
What FAST brings for broadcasters
Free-ad-supported streaming TV is witnessing some of the fastest adoption rates throughout North America, Europe and major South East Asian economies. Since over 45% of the Latin American population already consumes digital video content, FAST is a great opportunity for broadcasters in the region to garner a larger audience without the increasing burden of convincing customers to pay a subscription fee.
With a vast majority of the adult internet consumers are already consuming content through AVOD (ad-supported video-on-demand) sources, FAST presents a unique opportunity to target a willing audience.
The new-age ad landscape
Research has shown that almost 37% of internet users in LATAM region prefer ad-supported content. Since FAST is capable of delivering dynamic ads, the relevance can help broadcasters improve ad impressions and conversion for brands. This helps draw more ad revenue and improve ad viewing duration.
FAST allows broadcasters to automate their ad space sales, providing dynamic ad-insertion and giving them control of their advertisement inventory, and resulting in higher revenue.
The Latin American region is ripe for introducing FAST channels. A report by Insider Intelligence surveyed internet users between the ages of 18-50 in Argentina, Brazil, Columbia and Mexico to identify content consumption trends. The report found that over 70% of the surveyed population was already consuming content through AVOD channels. Since a market for FAST already exists, audience migration is not a major challenge.
Market players
As major content distributors such as Pluto TV enter the LATAM TV market with their vast content libraries, traditional consumers are likely to begin migrating to the FAST channels as well. Another prominent player is DistroTV which recently launched its Spanish language bundle for its audiences in the US as well as Latin America.
Why choose FAST?
Price factor
The Latin American population is a price-conscious audience, requiring affordable content services to be offered. Therefore, the price factor is a major advantage of FAST solutions. Since streaming services draw a large audience in the region, FAST presents a cost-effective solution to consumers to watch high-quality content.
Diversity
FAST allows content creators of all sizes throughout the world to reach diverse audiences. Moreover, the use of closed captions and translations is already in wide use throughout the FAST landscape. Therefore, broadcasters in the LatAm region can easily deliver endless hours of content created in a myriad of languages.
Free ad-supported streaming TV presents a unique opportunity to target a willing audience and monetize an already existing rich catalog of recorded content. You can easily create and distribute a rich variety of thematic channels of telenovelas, games, soccer flashback, and so on, and build a smooth cloud path journey for your broadcast facilities.
What Amagi brings for FAST in Latin America
Amagi is one of the fastest-growing SaaS media tech companies in the world, with over a decade’s experience in enabling top broadcasters and content owners to create, distribute, and monetize content across platforms. We manage over 2000 channel deliveries across 50+ different platforms. Our end-to-end cloud playout and ad tech solutions also allow broadcasters and content owners to monetize content and optimize their business strategy by tracking data on viewership and ad impressions.
Check out Amagi Global FAST Report to understand what content genres are the favorite among Latin American audiences and get a peek into their FAST channel consumption patterns.
Free ad-supported streaming TV platforms are slowly becoming the go-to universe for relishing news, lifestyle programming, and a whole slew of niche and mainstream content not available elsewhere for Spanish-speaking audiences. If you seek to leverage the advantages of FAST in LATAM, contact us.
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