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New white label model further pushes sat-TV in Brazil

Quarterly Television Monitoring Service
Published: 2014-04-27

At end-2013, subscribers to pay TV service in Brazil reached over 18m – representing an 11.4% growth from the previous year. The largest contributor to this growth is satellite TV with over 11m subscribers. Although the growth actually slowed down in 2013 – 13% increase YoY (versus 40.9% growth between 2011 and 2012) – satellite TV is expected to remain the most popular platform reach 16m users by 2018 (25% TV household penetration). Satellite TV has been the most popular pay TV platform since late-2011 when it surpassed the CaTV base thanks to the entry of new players such as Embratel and Telefonica do Brasil (Vivo brand). Sky Brazil, owned by the US-based DirecTV group, is the largest satellite TV operator with 5.4m subscribers and the second largest among the nation’s pay TV operators. Although at a slower pace, the Cable TV market continues to grow, attracting 6.9m subscriber in 2013 – almost a 9% YoY growth. Net Serviços is the main CaTV player as well as the largest pay TV operator in Brazil with over 6m base.

The IPTV subscriber base remains small as a result of the influence of different factors. First of all, Brazil was late to join the IPTV bandwagon due to regulatory hurdles that prohibited fixed line providers to offer pay TV services until late 2011. Additionally, there are only two players — Telefonica do Brasil and Oi so far — with limited service coverage even in main cities such as Sao Paolo and Rio de Janiero. IPTV is expected to experience sluggish and subdued growth as satellite TV continues to expand its reach. Additionally, some carriers adopted a new sort of white label reselling model, according to which they offer their satellite TV packages to regional ISPs. Satellite TV provider Unotel, for instance, managed to forge 100 partnerships covering 490 municipalities and is planning to launch in June. Another satellite provider, Algar Telecom, is following the same strategy.

Published: 2014-04-27





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