Latin America’s Streaming Surge: Broadcasters Thrive as Streamers Seek Growth

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In 2025, the worldwide television industry stands at a crucial crossroads. Today, during a Content Americas conference in Miami, Ampere analyst Fred Black delivered an extensive analysis of the present scenario and the projected course for the broadcasting and streaming sector, emphasizing particularly on Latin America.

Below, we look at the five most compelling takeaways from Black’s presentation.

1. The Post-Pandemic Shift in TV Production

TV season orders worldwide have experienced considerable ups and downs during recent years. As reported by Black, “Emerging from pandemic-related disruptions into 2022, streaming platforms were aggressively pursuing subscriber growth. This led to a significant surge in 2022. However, in 2023, as streaming shifted from expansion to consolidation and profitability, combined with the Hollywood strikes, there was a drop of approximately 10%.”

The trajectory persisted into the year 2024, as the quantity of series commissioned once again reached the numbers seen in 2021. This change signifies the business world’s move towards a controlled growth strategy, emphasizing sustainability and profitability over rapid expansion.

2. The Revenue Equation: Streaming vs. Linear TV

A major factor influencing the industry’s future development is the balance between streaming income and the decrease in traditional TV broadcasting. Black emphasized, “By 2025, we stand to lose $8 billion worldwide from linear revenues, but we anticipate earning an additional $16 billion from streaming services, resulting in a modest growth rate.” This optimistic view is more prominent in regions outside of North America, where there’s greater potential for growth. The industry’s capacity to adapt to these shifts will be vital in preserving its growth path during a period of significant upheaval.

3. Latin America’s Upcoming Streaming Boom

The streaming industry in Latin America appears particularly well-positioned for substantial expansion compared to many other regions. Black pointed out that there’s still considerable revenue growth expected from Subscription OTT in Latin America over the next five years, while the decrease in linear TV viewership is likely to be minimal. This region’s relatively steady linear TV market, exemplified by Brazil’s broadcasting giant Globo which remains Latin America’s leading content producer and distributor, along with the potential for substantial growth in subscription-based streaming services, makes it a significant player on the global streaming stage.

4. The Evolution of Content Spend

Black’s talk offered insights into the upcoming trends of content investment. In essence, he predicted that streaming platforms, whether subscription or free, will experience significant growth over the next few years, while other categories may either remain steady or decrease. This growth will primarily occur in regions outside the U.S., where production costs are lower and markets are less competitive. Interestingly, there’s been a drop in scripted commissions during the last two years, particularly for costly genres such as science fiction and fantasy. These types of productions are now predominantly reserved for U.S. and occasionally European projects.

5. The Role of IP in Scripted Commissions

The dominance of intellectual property (IP) has been a key factor in content creation for quite some time, and its significance continues to grow, especially in the realm of scripted programming acquisitions. Black noted, “In North America, approximately 40% of significant streaming originals are derived from original IP, while internationally, this figure is converging around 60-70%. This pattern is particularly noticeable in Latin America, where established IP plays a vital role due to the region’s high growth potential.” Streaming platforms are increasingly focused on establishing franchises that keep viewers tied to their service, making commissioning based on IP a strategic imperative.

2021 looks poised for continuous development and tactical transformations within the Latin American television sector. As Black put it, “The ratio of linear and Video-on-Demand (VoD) productions is tilting towards VoD. Yet, the streaming content will increasingly mimic traditional linear content – with unscripted content that appeals to advertisers, performs well locally, and features formatted reality; while in scripted content, there’s a greater emphasis on catering to a global audience and developing franchises.” The industry’s adaptability to these transitions will be crucial for its prosperity in the upcoming years.

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2025-01-21 18:19