The survey "The impact of DTH in Latin America," of Convergencia Research, forecasts that DTH technology will be the main access to subscription TV in the region next year, above CATV. Out of a total of 15 countries analyzed (Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Paraguay, Dominican Republic, Uruguay and Venezuela), Argentina and Uruguay are distinguished by not presenting multiple DTH providers, among other features (see details below).

In 2012, DTH represented 45% of pay TV subscribers in Latin America (25 million), while CATV reached 53% (29.7 million). In a span of five years, satellite technology doubled in size: by 2007 it added 6.4 million subscriptions (22%), and CATV enjoyed a 72% share of total connections (20.8 million). Of the new 28 million pay TV households registered between 2007 and 2012, about 60%  have contracted DTH.

If this economic growth in Latin America continues, Convergencia Research estimates that by 2017, 90.9 million households will have subscription television services, 56% of them, through DTH.

Models for unmet demand. DTH growth is a result of competition between  the intra- and inter-platform generated by commercial strategies aimed at the base of the social pyramid. This, added to the entry of traditional telecommunications operators to pay TV, who opted for satellite technology and bet on grid models with less number of channels (40) for values ​​between 20% and 30% lower than basic CATV plans. With the new proposal generated models that capture the unmet demand whose main barrier was the cost or coverage area.

Inparallel, traditional providers of DTH as Sky or DirecTV diversified proposals to compete in new segments. Depending on the country, prepaid DTH was also a good option to increase the base of potential subscribers with less ability to pay for the service.

With the growth of DTH as a platform, new players entered the segment, among  are state operators of Ecuador, Bolivia and Venezuela. Moreover, generated wholesale models like Tu Ves and Telefónica Media Networks; and cases of operators with multiple platforms, as Vivo live in Brazil (DTH and IPTV), Claro Brazil (DTH and CATV) and Interin Venezuela (CATV and DTH). To this one must add changes to regulations that propose technological neutrality, as in the case of Colombia.

Among the 15 countries analyzed, only two currently have a competitive DTH environment.

The Argentine case. Argentina only has one major DTH operator (DirecTV) and other nascent (the platform InTV, linked to the association Red Intercable: was launched in 2010 and with the full implementation of the Media Law has to re-adapt, has a small base of subscribers). DirecTV’s DTH has had extraordinary growth from 8% to 18 % of market share in the past seven years, and continues moving into new social sectors through prepayment systems, without demonstrating its aggressive competition within intra- and inter-platforms in other countries.

In Argentina there are about 800 operators that offer wired subscription TV (CATV) services serving the Interior. While in large urban centers the market is dominate by: MSO Cablevisión, Supercanal and Telecentro.

The possible entry of DTH operators or the possibility that operators use multiple platforms could generate price competition as well as decentralize the market (43% in the hands of Grupo Clarin, 2012). However, the country is undergoing a process of change, following the Supreme Court's declaration of constitutionality of the Law on Audiovisual Communication Services, ruled in late October. On the other hand, Grupo Clarín last week proposed a division of six companies, to adapt to the amount of allowable licenses, although this process could take up to four months for approval.

Due to a difficult implementation of the Media Law since its enactment in 2009, only a few licenses have been delivered, mostly to cooperatives that needed to regularize their situation. Despite the fact that the new law established the possibility for a DTH license, there are no interested parties.

Uruguay. This country -along with Argentina- is one of the country’s registering the highest subscription TV penetration, with a strange configuration regarding business ownership and technology platforms. On the one hand, CATV operators form a mix with broadcasters and media groups, which can be seen in the  Map of Media & Telecommunications in Uruguay, developed by Convergencialatina-; on the other hand, is the only country where CATV operators can provide broadband services. As for DTH, the only company is DirecTV and there is a second national license for satellite TV but restricted to rural areas (Ñande Tanga). It is the only country among those studied which shows this type of license limited to specific geographic characteristics.

Claro had tried to enter this market, but the license it obtained in 2008 was revoked by the Ministry of Industry a year later, and confirmed by executive decree in May 2013.

In turn, there are two very different facts between Montevideo and the rest of the country. The capital is characterized by a large number of operators (six), but without price competition because four of them are linked in a very complex web between broadcast TV, cable and content provision. In the Interior, 40% of the business is run by small cable companies, but operators in Montevideo end up conquering 20% of the market under different alliances.

What might alter this situation is the enactment of the Audiovisual Communications Services, which imposes limits on licenses, will be voted by the House of Representatives in November.