Sky, Dish to hold 51% of pay-TV market

Tuesday, July 19, 2011

Mexican satellite TV providers Sky and Dish are set to account for 51% of the country's pay-TV market by the end of this year, local press reported.

Estimates are based on the fact that for the first time in the country, DTH satellite systems equal the number of cable TV subscribers.

Additionally, the DTH market will see the entrance of two new operators, Spanish giant Telefónica (NYSE: TEF) and Mexican telco Axtel (BMV: AXTELCPO), which have already been awarded concessions.

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Mexico has more than 5mn DTH subscribers, similar to the cable TV market. Growth has been attributed mainly to aggressive offers aimed at the low-income segment.

National cable industry association Canitec's director, Alejandro Navarrete, was quoted as saying that this trend is not unique to Mexico, but is seen throughout Latin America. One of the reasons is that DTH can rapidly cover a country or entire region, while cable TV requires sustained investments to gradually deploy networks.