Mobile-First: Millennials in. Latin America. Presented by Daniel Punt, FTI Consulting, Inc. May 16, 2018. Page 2. Who is
Mobile-First: Millennials in Latin America Presented by Daniel Punt, FTI Consulting, Inc.
May 16, 2018
Who is FTI Consulting? Experts with Impact
3,620+
430+
$1.9B
Professionals
Partners
Market Cap.(1)
81
30
Cities
Countries
Advisor to 97 of the world’s top 100 law firms
56 of Fortune Global 100 corporations are clients
Advisor to world’s top 10 bank holding companies
Latin American Market Fundamentals An evolving Latin American economy will contribute to increased digital streaming Population with bank accounts
186M
Size of Middle Class
67M
Broadband Households (2017)
417M
Mobile Internet Connections (2017)
93%
Of Internet Users w/ Smartphone
Connectivity in Latin America 600 500 400
Millions
50%+
300 200 100 0 2012
Sources: PwC
2013
2014
2015
2016
2017
2018
2019
2020
2021 3
Smartphone Penetration in Latin America Continues to Grow Latin American smartphone penetration is expected to surge past 70% in the coming years
Smartphone Penetration 90 80 70 Percent
60 50 40 30
20 10 Argentina
Brazil
Chile
Colombia 2017
Sources: PwC
Mexico
Peru
Venezuela
Latin America
2021 4
Mobile Data in Latin America is Getting Faster, Resulting in Increased Mobile Viewership Video is the primary driver of increased mobile data consumption
Data Consumption - Smartphone Video in Latin America
Percentage of Smartphone Connections
16,000,000
100%
14,000,000 Millions of Megabytes
80%
60%
40%
12,000,000 10,000,000
20%
8,000,000 6,000,000
4,000,000 2,000,000 0
0% 2012
2013
2014
2015 2G
Sources: PwC, GSMA
2016 3G
2017
2018
2019
2020
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
4G
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Video Consumption Trends in Latin America Latin American consumers are rapidly adopting streaming platforms, while traditional TV grows more slowly
Latin American Viewership Trends 50%
Households
40%
30%
20%
10%
0%
2013 Sources: PwC, FTI Analysis
2014
2015
2016
2017
2018
2019
2020
2021 6
LatAm Millennials: Increasingly Mobile Mobile video consumption in Latin America has increased dramatically since 2012, with consumption increasing up to 3x in some countries
Brazil
Mexico
Share of Weekly TV Video Viewing by Millennials
Share of Weekly TV Video Viewing by Millennials
100%
3X Smartphone Viewership Growth Since 2012
80% 60%
100% 80% 60%
40%
40%
20%
20%
0%
2X Smartphone Viewership Growth Since 2012
0% 2012 TV
2013 Desktop
Tablet
2014 Laptop
2015 Other
Source: Ericsson ConsumerLab
2016
Smartphone
2012 TV
2013 Desktop
Tablet
2014 Laptop
2015 Other
2016
Smartphone
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Entertainment Apps In Latin America 6.4M 1.6M 0.5M
405M
9M
60K
Monthly LA Uniques LatAm Users Short-form driven Ad-supported
LatAm Subscribers Similar to premium pay TV
LatAm Subscribers Similar to Netflix
Movies and full TV series
Sources: FTI Analysis, Broadband TV News, Statista
Tied to free shipping on Amazon
0.5M Competitors to Netflix Begun creating original content
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Example Multi-Platform “Influencer” Talent Observational humor Fan interaction Daily vlogs
Observational humor Scripted miniseries Music video parodies
Werevertumorro
Marialejandra Marrero
Mexican YouTube channel
Venezuelan YouTube channel
Average monthly views: 46.4M
Total Views: 724M
YouTube Subscribers: 14.5M
YouTube Subscribers: 8.5M
Facebook Likes: 22.5M
Facebook Likes: 1.7M
Twitter Followers: 8.4M
Twitter Followers: 1.0M 9
Global Spend on Scripted Video Content
Spanish Language Video Content (USD Billions)
English Language Video Content (USD Billions) $30 $23
$25
$20
$16
$10 $5
$8
$8
$10
$9
$11
$10
$10
$2.00 $1.60
$20
$19
$15
$25 $11
$1.20 $0.80
$13
$14
$0
$0.40 $0.00
2018
2019
2020 OTT
Sources: PwC, FTI Analysis
TV
2021
2022
$0.9 $0.6
$0.7
$0.4 $0.1
$0.4 $0.2
$0.4
2018
2019
$0.5
OTT
$1.0
$0.5
$0.5
$0.3
$0.4
$0.5
2020
2021
2022
TV
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Industry Impact of Mobile Video Adoption Consumers More content More options More mobility
TV Companies
OTT Services
Production Companies
Talent
Opportunities to enter and grow – but heavy competition
Increased competition
More platforms for content
Increased opportunity
Opportunity with ATSC 3.0?
Opportunity for content innovation ▪ Shorter ▪ Premium ▪ Interactive
Possible need to pivot and/or consolidate
More demand for premium content
New entry points (influencer market)
Favorable news
Moderate news
More competition on pro-sumer end Disruption to TV model
Unfavorable news
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Contact Information
[email protected] +1 310 651 9066
Daniel G. Punt Managing Director Los Angeles, CA
1840 Century Park East | Suite 400 Los Angeles, CA 90067 www.fticonsulting.com
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