mobile-first: millennials in latin america · who is fti consulting? 3,620+ professionals 430+...
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Mobile-First: Millennials in Latin America
Presented by Daniel Punt, FTI Consulting, Inc.
May 16, 2018
Who is FTI Consulting?
3,620+Professionals
430+Partners
$1.9BMarket Cap.(1)
81Cities
30Countries
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
Experts with Impact
Latin American Market Fundamentals
3Sources: PwC
186M
67M
93%
An evolving Latin American economy will contribute to increased digital streaming
50%+
417M
Population with bank accounts
Mobile Internet Connections (2017)
Broadband Households (2017)
Size of Middle Class
Of Internet Users w/ Smartphone
0
100
200
300
400
500
600
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mil
lio
ns
Connectivity in Latin America
Smartphone Penetration in Latin America Continues to Grow
4Sources: PwC
Latin American smartphone penetration is expected to surge past 70% in the coming years
-
10
20
30
40
50
60
70
80
90
Argentina Brazil Chile Colombia Mexico Peru Venezuela LatinAmerica
Pe
rce
nt
Smartphone Penetration
2017 2021
Mobile Data in Latin America is Getting Faster, Resulting in Increased Mobile Viewership
5Sources: PwC, GSMA
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016 2017 2018 2019 2020
Percentage of Smartphone Connections
2G 3G 4G
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Mil
lio
ns
of M
ega
byt
es
Data Consumption - Smartphone Video in Latin America
Video is the primary driver of increased mobile data consumption
Video Consumption Trends in Latin America
6Sources: PwC, FTI Analysis
Latin American consumers are rapidly adopting streaming platforms, while traditional TV grows more slowly
0%
10%
20%
30%
40%
50%
2013 2014 2015 2016 2017 2018 2019 2020 2021
Ho
use
ho
lds
Latin American Viewership Trends
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
Share of Weekly TV Video Viewing by Millennials
TV Desktop Tablet Laptop Other Smartphone
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
Share of Weekly TV Video Viewing by Millennials
TV Desktop Tablet Laptop Other Smartphone
LatAm Millennials: Increasingly Mobile
7Source: Ericsson ConsumerLab
3X Smartphone Viewership
Growth Since 2012
2X Smartphone Viewership
Growth Since 2012
Mobile video consumption in Latin America has increased dramatically since 2012, with consumption increasing up to 3x in some countries
Brazil Mexico
405MMonthly LA Uniques
LatAm Users
Short-form driven
Ad-supported
Entertainment Apps In Latin America
8
9MLatAm Subscribers
Similar to premium pay TV
Movies and full TV series
60KLatAm Subscribers
Similar to Netflix
Tied to free shipping on Amazon
Competitors to Netflix
Begun creating original content
Sources: FTI Analysis, Broadband TV News, Statista
1.6M
0.5M
0.5M
6.4M
Example Multi-Platform “Influencer” Talent
9
Werevertumorro
Mexican YouTube channel
Average monthly views: 46.4M
YouTube Subscribers: 14.5M
Facebook Likes: 22.5M
Twitter Followers: 8.4M
Marialejandra Marrero
Venezuelan YouTube channel
Total Views: 724M
YouTube Subscribers: 8.5M
Facebook Likes: 1.7M
Twitter Followers: 1.0M
Observational humor
Scripted mini-series
Music video parodies
Observational humor
Fan interaction
Daily vlogs
Global Spend on Scripted Video Content
10Sources: PwC, FTI Analysis
$8 $10 $11 $13 $14
$8 $9 $10
$10 $11 $16
$19 $20 $23
$25
$0
$5
$10
$15
$20
$25
$30
2018 2019 2020 2021 2022
English Language Video Content (USD Billions)
OTT TV
$0.1 $0.2 $0.3 $0.4 $0.5 $0.4 $0.4 $0.4$0.5 $0.5$0.5
$0.6 $0.7$0.9
$1.0
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
2018 2019 2020 2021 2022
Spanish Language Video Content (USD Billions)
OTT TV
Industry Impact of Mobile Video Adoption
11
OTT ServicesTV
Companies
Production Companies
TalentConsumers
Opportunities to enter and grow – but heavy competition
Opportunity for content innovation
▪ Shorter
▪ Premium
▪ Interactive
Increased competition
Opportunity with ATSC 3.0?
Possible need to pivot and/or consolidate
More platforms for content
More demand for premium content
More competition on pro-sumer end
Disruption to TV model
Increased opportunity
New entry points (influencer market)
More content
More options
More mobility
Favorable news Moderate news Unfavorable news
Contact Information
12
Daniel G. Punt
Managing Director
Los Angeles, CA
+1 310 651 9066
1840 Century Park East | Suite 400
Los Angeles, CA 90067
www.fticonsulting.com