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Significant Digital TV Growth in Latin America

New research from Informa Telecoms & Media shows that digital TV will make significant growth progress in Latin America over the next five years. Digital TV households will more than treble in that time -- from 12.2 million at present to 37.1 million by 2014.

Informa discovered that while Brazil and Mexico now combine to account for half of the region's digital subscribers, this will drop to 45 percent in 2014 -- as other countries see their services start to take off.

Adam Thomas at Informa said "While the global economic situation is bound to have some impact, Latin America's economies now appear more robust than they were in the 1990s. We therefore see a positive outlook for the region's TV sector."

Major players such as Telmex and Telefonica continue to invest, which contributes to the upbeat sentiment.

The Informa research found that deregulation in the telecoms sector has encouraged cable TV operators to invest in network improvements, or face the risk of getting left behind. This has created a cable sector that is much better positioned to compete in terms of content and functionality.

Consolidation in the satellite sector has also started to pay off for DirecTV and the renewed confidence in DTH is illustrated by new entrants looking for a piece of the market.

The battle for dominance of triple-play between Telefonica and Telmex is affecting all sectors of the broadcast TV market.

According to Thomas, the two giants are exploiting opportunities created by the lack of investment from the pay-TV incumbents. They are investing heavily to increase their presence across several platforms, including satellite, cable and potentially IPTV.

The fully-updated Pay-TV research report is published by Informa. It analyzes the region's top 20 markets -- including Brazil, Mexico, Argentina, Chile, Venezuela, Peru, Puerto Rico -- as well as the U.S. and Canada.

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