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Television Face Close-up by Martin Howard

According to research from Futuresource Consulting, consumer spending on video and TV entertainment in Mexico reached USD 4.2 billion in 2013, recording a 9% growth. The company is also optimistic and expects more growth this year, enabling the market to reach USD 4.5 billion in 2014.

The company’s senior market analyst Joanna Wright commented, “2013 was an extremely strong year for pay-TV in Mexico – growing by almost two million subscribers (+14%), with consumer spend reaching USD 2.9 billion and a further 10% growth expected in 2014.” She later added, “This has been driven by an increase across all platforms, as digital cable grew by 790,000, satellite homes 630,000 and IPTV 60,000.”

The Mexican government takes pride in its creative industries as they contribute to the country’s economic development, producing over 500 billion USD annually. The industries also provide numerous job opportunities while making use of state-of-the-art technology before introducing them to parallel industries.

A 2011 ProMexico report called the Roadmap for the Creative Industries predicted this growth earlier. According to the document, the film subsector will grow due to the increase and implementation of 3D titles whereas online and mobile device games will display the highest growth. Meanwhile, the music market will improve due to more digital distribution. Combined, this subsector was expected to grow at 4% between 2009 and 2013.

As for television, TV advertising was expected to be slow since it is recovering and adapting to the new, very young consumers. Despite falling at a rate of 11.9% by 2009, the subsector was expected to recover by 2013. On the other hand, the internet was expected to thrive thanks to higher download speeds, richer content, and better upload speeds. As a result, the subsector’s global market forecasts predicted a growth of 9.2% until 2013.

Unfortunately, while the packaged video market is a significant Mexican sector that has held up well so far, it’s starting to suffer. It recorded its first two-digit decline last year. One of the reasons behind this is Blu-ray’s enhanced performance, which led to a 15% growth rate by 2013 and the title of the fifth largest market globally.

Digital video also performed extremely well in the past year, growing by 91% to USD 86 million. Come 2018, the industry is expected to double its worth to reach USD 360 million, especially due to the high demand for subscription video on demand services (SVOD).

Wright says, “SVOD accounted for 66% of overall digital spend in 2013 and with 70% growth expected in 2014. Key drivers of this growth were the introduction of Netflix in 2011 and new entrants to the market in 2013 helping further raise awareness of the service. As the broadband infrastructure improves, SVoD services have the potential to generate significant consumer spend in Mexico.”

The predicted numbers can either go higher or down depending on the changes the Mexican telecom reforms will create. However, even then, due to the increased competitiveness in the market, the creative industries will thrive.


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