Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Tuesday, January 21, 2020

Mobile video: Integration with digital players and the generation of own content move operators

For mobile operators, who seek to enter the game content, the almost obligatory step of generating original content is added to make their profitable systems, with aggregation as a key point. The video streaming component stomps as a component of Movistar network traffic: it constitutes 48%, compared to the 40% it represented in 2018.

The on demand ecosystem is centered on a user who demands fast and quality episode delivery, and who, in turn, access content on multiple screens and with less and less attention time. For mobile operators, who seek to enter the game content, the almost obligatory step of generating original content is added to make their profitable systems, with aggregation as a key point.

The outlook is no longer uncertain for these actors, who already see clear commercial uses in a world that until a few years ago was foreign to them.

Flow had more than 1.5 million unique users in December 2019, with 2.4 million registered devices, Martin Heine, Marketing Director of Telecom Argentina confirmed to Convergencia. Each user accesses Flow through almost 3 devices on average. Apart from Flow Box, the most used device to access the content platform is the cell phone (79%), followed by the computer (49%) and the tablet (19%).

Flow's strategy around content is based on agreements with international and national producers, as well as the incorporation of new verticals associated with music (in 2020 Flow Music XP will stream the Lollapalooza festival) and esports. The operator has been involved in the co-production of a total of 16 series since the launch of the platform and added the offer of packages of gigas to use Flow in mobility: double profit (platform + data) for Cablevisión.

Movistar Play, with 250,000 active clients since its launch in March 2019, is Telefónica's commitment in terms of content platforms, although they cannot yet offer it to users outside its client portfolio. Unlike Flow or DirectvGO, you can hire it without having a paid TV service. The platform “still represents little on mobile,” explained Hernán La Rosa, Mobile Connectivity manager of the Products and Services Development area at Movistar. The basic package includes some air channels and exclusive content after an alliance with Amazon Prime and HBO, which are offered free of charge, although they plan to charge them later. 

The video streaming component stomps as a component of Movistar network traffic. It constitutes 48%, compared to 40% that it represented in 2018. YouTube, Instagram and Facebook dominate the traffic, with an outstanding growth of Instagram highlighted in the last year, over the rest of apps. 

In the case of Claro, video streaming represents 70% of network traffic. The company plans to integrate OTTs to its Claro Video platform, among new TV and video products, as Alejandro Quiroga, director of Regulatory and Institutional Affairs of Claro for Argentina, Paraguay and Uruguay, entrusted to Convergencia. The consumption of movies is what is most used in the mobile (Claro Video also has series and karaoke). For next year they plan to add content in gaming, a product that is considered a driver of customer service.

 

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