Pay TV channels distribution in Latam and North America

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1 Pay TV channels distribution in Latam and North America Presenter: Camille Dupont Senior Analyst Americas at Dataxis FREE WEBINAR November 8, 2017

2 Before to start: Ask your questions online Recording and presentation will be on Dataxis website Please, give us your feedback, with only 5 questions 2

3 Presentation of the TV Tracker module Analysis of the offer of pay TV channels in 11 countries of the Americas Public sources or numbers estimated according to an adequate methodology Module available in the database for TV channels offered by television operators 12 tracked topics in Argentina, Brazil, Chile, Columbia, Ecuador, Mexico, Peru, Uruguay and Venezuela (85% of the total number of subscribers in the continent) 3 tracked topics in Canada and the United States Calculation of the potential reach of several premium channels available in the 11 countries mentioned 3

4 Agenda 1 Pay TV channels offer in Latin America by topic 2 The most widely distributed channels in Latin America 3 The biggest content groups in Latin America 4 Kids, Movies & Fictions and Sports channels offer in the United States and Canada 5 The Latino audience in the United States 6 Analysis of Premium channels in Latin America 7 Analysis of Premium channels in the United States and Canada 4

5 Pay TV channels offer by topic and by country in Latin America We are tracking more than 1,500 channels spread over 12 topics Movies & Fictions topic has the biggest offer The distribution of the channels by topic follows the same logic in all the countries studied Channels' repartition by genre and countries Column1 Argentina Brazil Chile Colombia Ecuador Mexico Peru Uruguay Venezuela Total Documentary Educational Generalist Home & Shopping International Kids Lifestyle Movies & Fictions Music News Religious Sports Total Networks by genre in Latam Documentary 7.2% Music 7.3% Kids 7.9% Lifestyle 5.7% Sports 10.4% Religious 3.4% News 2.7% Educational 1.9% Home & Shopping 0.3% Generalist 11.7% Movies & Fictions 21.3% International 20.3% 5

6 The most important channels in Latin America topic by topic For each genre we found the local channel with the farthest reaching in the region. As expected, they are all located in Mexico or Brazil, which are the countries with the largest markets. Biggest network by thematic Thematic Biggest Network Country Generalist TV Brasil Brazil Religious Rede Vida Brazil Educational Futura Brazil Documentary National Geographic Mexico Movies & Fictions Fox, Sony Entertainment Mexico Sports Fox Sports Mexico Music PlayTV Brazil Kids Discovery Kids Brazil News Globo Brazil Home & Shopping Polishop Brazil Lifestyle GNT Brazil International Telemundo Internacional Mexico 6

7 Channels with the best distribution in Latin America Adding the potential subscribers of the channels disseminated in all the countries of the region, we see that the first 20 reach a high level of penetration. The most represented topics are Documentary, Movies & Fictions, Kids and Sports. Top 20 of networks with best diffusion in the region Network Group Genre Penetration over total Pay TV subs Country with the biggest distribution National Geographic Fox Networks Group Documentary 97% Mexico Fox Fox Networks Group Movies&Fictions 96% Mexico Discovery Channel Discovery Networks Documentary 95% Brazil Sony Entertainment Television Sony Pictures Television Movies&Fictions 93% Mexico Discovery Kids Discovery Networks Kids 92% Brazil Disney Channel Disney Networks Kids 90% Brazil Warner Channel Turner Networks Movies&Fictions 89% Mexico Space Turner Networks Movies&Fictions 89% Mexico E! NBC Universal Generalist 88% Mexico Fox Life Fox Networks Group Lifestyle 86% Mexico Fox Sports Fox Networks Group Sports 84% Mexico Nickelodeon Viacom International Networks Kids 84% Mexico Discovery Home & Health Discovery Networks Movies&Fictions 82% Mexico TNT Turner Networks Movies&Fictions 82% Brazil History Channel A&E Television Networks Documentary 81% Mexico ESPN Disney Networks Sports 79% Mexico FX Fox Networks Group Movies&Fictions 79% Brazil Cartoon Network Latam Turner Networks Kids 79% Brazil Disney XD Disney Networks Kids 78% Mexico Universal Channel NBC Universal Movies&Fictions 78% Brazil 7

8 The largest content groups in Latin America The list presents the top 10 of content groups with better reach. Globo Group has a smaller portfolio of channels than the others but these channels have a very important base of subscribers Top 10 of groups with best diffusion Q217 Group Total Biggest Networks Networks 1 Turner Networks 158 Space, Cartoon Network, TNT 2 Fox Networks Group 103 Fox, Fox Sports, National Geographic 3 Discovery Networks 81 Discovery Kids, Discovery Channel, Investigation discovery 4 Disney Networks 58 Disney XD 5 Televisa Group 67 Distrito Comedia 6 Globo Group 18 Futura, Canal Brasil, Globo TV 7 Viacom International Networks 81 Nickelodeon, MTV, Comedy central 8 NBC Universal 44 E!, Universal channel, Telemundo internacional 9 A&E Television Networks 36 A&E, History Channel, Lifetime 10 AMC Networks 55 El Gourmet, AMC, Film & Arts 8

9 Kids, Movies & Fictions and Sports channels offer in the United States and Canada For each topic, there are channels with very high penetration over the total of pay TV subscribers. The levels of penetration in Canada and the United States are similar to those of Latin American channels that have diffusion throughout the continent (eg National Geographic). Networks by thematic and best penetration rate USA Best network's penetration Biggest Network Canada Best network's penetration Biggest Network Kids 13 95% Disney Channel 10 85% Treehouse Movies & Fictions 21 94% A&E 12 82% A&E Sports 24 88% ESPN % TSN, TSN 3, TSN 4, TSN 5 9

10 The Latino audience in the United-States Most of the major pay TV operators (Comcast, Charter, Verizon...) offer plans directed to a Spanish-speaking audience. They include most of the "classical" channels in English and specific channels in Spanish. The channels of Latino plans have a penetration of up to 8% over all pay TV subscribers. Networks by thematic and best penetration rate - Latino Pac Latino Pack Number of networks available Best network's penetration Biggest Network Kids 12 8% Disney XD Movies & Fictions 17 8% Galavisión USA Sports 22 8% Fox Deportes, ESPN Deportes Several channels in Spanish have a very high global penetration because they do not appear only in the Latino packages but also in the classical offer of operators. For example Galavisión reaches 68% of the total pay TV subscribers in the country Penetration of networks in spanish over total subscribers Networks in spanish Best network's Biggest Network penetration Kids 3% Disney XD en español Movies & Fictions 68% Galavisión USA Sports 45% Univisión Deportes Network 10

11 An analysis of Premium channels in Latin America HBO Premium packages are available in the 9 countries that we follow The penetration of total subscribers is 8.4%, with significant disparities between countries Chile has the highest penetration and Brazil, which is a key market, has the least important penetration. Fox Premium and Telecine have a more exclusive positioning since less than 3% of subscribers subscribe to the package. By way of comparison, Netflix concentrates almost twice as many subscribers as HBO, with a global penetration of 15.7% and a strong presence in the most important markets (Brazil and Mexico) Premium Channels in Latin America % Total Penetration + Telecine 15,7% 8,4% 2,7% 11

12 An analysis of Premium channels in United-States and Canada The penetration of the HBO package is much higher than in Latin America: it is as an accessible Premium. However, Netflix has even more subscribers. Starz, Showtime and Epix are more exclusive but still have a relatively high penetration. In contrast, NFL Sunday Ticket is only accessible via DirecTV. In Canada, HBO has an important reach, greater than Netflix. However, the other channels are more exclusive MILLIONS USA Total potential subs in M Penetration % % % % 2.10% 2.09 HBO Starz Showtime Epix NFL Sunday Ticket 50.2% Netflix 60% 50% 40% 30% 20% 10% 0% Canada Total potential subs in M Penetration MILLIONS % 32.4% % % HBO The Movie Network Super Channel Netflix 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 12

13 Conclusions In Latin America, the distribution of channels by topic in each country is globally homogenous. The topic Movies & Fictions is the most represented. The total offer of pay TV channels varies from one country to another (120 in Brazil, more than 200 in Argentina) due to diverse causes (language, national context, geographical proximity to another country, etc.) In Latin America, the biggest channels achieve a level of penetration of more than 90%, as in the United States. In Canada they are lower rates, due to a more flexible offer of pay TV operators. The first 4 content groups which are present in Latin America (Turner, Fox Discovery and Disney) are from the United States. They have channels of various topics. In the United States, TV operators tend to segment their channel offerings for the Latino audience. The channels of the Latino packages can reach a penetration of 8%. In the United States, subscription to Premium channels is much less exclusive than in Latin America. HBO is the Premium offer with the highest penetration in all the analysed territories 13

14 Thank you for your attention Free Webinar - November 8th 2017 More information : Camille Dupont dataxis.com 14

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