Cord-cutting hasn't hit Argentina
Juan Fernandez Gonzalez | 11 July 2014
Over-the-top (OTT) platforms are becoming increasingly popular in Argentina following the global trend towards premium video consumption, but the rising number of OTT users isn't affecting traditional pay-TV platforms.
According to a report from consultancy firm Carrier y Asociados, Usuario Online 2014, Argentineans aren't yet cutting the cord, and there are no differences in OTT subscriptions between those who already pay for cable or satellite services and those who don't.
The growing OTT services in Argentina are being used as an online video shop thanks to the video-on-demand (VOD) features and not as a pay-TV substitute, says the report.
Currently, 11% of homes with broadband are also subscribing to an OTT platform, meaning 580,000 families are paying for services such as Netflix.
The American platform is the most popular in Argentina, gathering two out of three OTT subscribers in the country, mostly belonging to high income sectors. Families with medium and low incomes prefer other services like On Video or Arnet Play, which also offer more local content.
Among the most developed Latin American countries, Argentina shows the slowest penetration of new video technologies. Although Internet penetration figures are among the highest in the region, the connection quality and speed are low, thus likely having an impact on online video consumption.
According to the report, around 60% of Internet users consume online video, mostly from computers and laptops. PCs are used by 78% of online viewers, while 34% use a smart TV or traditional TV connected through other devices, 10% watch via smartphones and 6% use a tablet
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