LATIN AMERICA
BROADCAST MARKET REPORT
2022
• STATE OF TECHNOLOGIES IN LATIN AMERICA 2021-2022 • PERSPECTIVES FROM INDUSTRY AND ACADEMY • RANKING TOP 50 BROADCAST INTEGRATORS • DEVELOPMENT – BROADCAST EVOLUTION IN LATIN AMERICA • LATIN AMERICAN ECONOMIES, A GRADUAL RECOVERY • BROADCAST 2022 TECHNOLOGY TRENDS, GROWTH AND OPPORTUNITIES
© Latin Press, Inc., 2022 All rights reserved. The total or partial reproduction of this work is not permitted, nor its incorporation into a computer system, nor its transmission in any form or by any means (electronic, mechanical, photocopying, recording or others) without the prior written authorization of the copyright holders. The infringement of said rights may constitute a crime against intellectual property. Original title: Broadcast Latin American Market Report 2022 1st edition: August 2022 Research and writing: Andrea Ochoa Restrepo Editorial Direction: Duván Chaverra Layout: Juan David Fernández Montoya Graphics: Juan David Fernandez Montoya Photos Cover: Pixabay
Content index Top 50 Broadcast integrators in Latin America: how is it done?............................................................. 5 Introduction........................................................................................................................................................6 Chapter 1: State of technologies in Latin America, 2021-2022.................................................................10 Main segments served (Sectors where the end user purchases more broadcast equipment or services) in 2021....................................................................................................................................................................11 Imports by region................................................................................................................................................12 Top Broadcast brands in 2021.............................................................................................................................13 Broadcast solutions most deployed in Latin America in 2021............................................................................14
Chapter 2: Industry outlook............................................................................................................ 19 Mexico.................................................................................................................................................................20 Central America and the Caribbean ..................................................................................................................21 Andean Region....................................................................................................................................................22 Southern Cone....................................................................................................................................................25 Consultant Perspectives......................................................................................................................................29
Chapter 3: Ranking Top 50 Broadcast integrators........................................................................ 36 Mexico.................................................................................................................................................................37 Central America..................................................................................................................................................39 Andean Region....................................................................................................................................................41 Southern Cone....................................................................................................................................................42
Chapter 4: Development - Evolution of Broadcast and its relationship with other technological services in Latin America..................................................................................................................................43 Broadcasting and streaming in Latin America....................................................................................................47 Investment and expenditure in production.........................................................................................................48 Broadcast and other services impacting the market in Latin American countries..............................................49
Chapter 5: Rising freight and cargo rates, why and what are the forecasts? .........................................63 High freight rates overshadow economic recovery ...........................................................................................65
Chapter 6: Broadcast 2022 technology trends, growth and opportunitiess............................... 67 Podcasts, the format that continues to grow and strengthen user confidence..................................................68 Digitization of platforms and the incorporation of new technologies ...............................................................70 Broadcasting in 5G band....................................................................................................................................73 OTT services........................................................................................................................................................74 Augmented reality..............................................................................................................................................75
Chapter 7: Latin American economies, a gradual recovery.......................................................... 76 Volatility in financial markets...............................................................................................................................79 Impact on trade and value chains.......................................................................................................................80 Balance of financial flows to the region..............................................................................................................82 Evolution of GDP in Latin America......................................................................................................................83 Future outlook.....................................................................................................................................................84 Inflation expectations 2022.................................................................................................................................87 Country-by-country macroeconomic analysis.....................................................................................................88 Index of references ................................................................................................................................ 106
LATIN AMERICA BROADCAST MARKET REPORT 2022
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TOP 50 BROADCAST INTEGRATORS IN LATIN AMERICA: HOW IS IT DONE? TvyVideo presents, for the first time, the Ranking Top 50 Broadcast integrators in Latin America, in order to highlight in 2022 the work of these integrators in the region for the growth of the industry. This ranking was born as an initiative that has also been successfully carried out by other international economic media, which, through information collected, highlight the most important companies in the region or the countries to which they belong. In this opportunity we consulted several sectors, including manufacturers, distributors, in addition to the bulk of our readers (consultants, technicians, end users, operators, among others) throughout our Latin American region, who, in the end, were responsible for legitimizing this work and contribute
to the recognition of these companies. Methodology For the election, a complete compilation of information was made in order to consolidate a list of 50 of the most outstanding integrators in Latin America, divided into four sub-regions (Mexico, Central America, Andean Region and Southern Cone). For this point were taken into account the recommendations of experts, who identified the companies with greater positioning within the Broadcast industry, as well as a detailed monitoring by the journalistic team of TvyVideo relying on consultants, experts and professionals with extensive knowledge of the industry.
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INTRODUCTION The world economic outlook continued to weaken during the last two years, the crisis has triggered a contraction in international trade, and in turn, has led to strong (high) price fluctuations as a consequence of volatility in the financial markets, which has translated into lower profitability and higher risk aversion. Thus, investment has been losing dynamism in the world despite liquidity and low interest rates. This is directly related to the current level of uncertainty. These disparities and asymmetries affect not only the dynamics of short-term growth, but also the capacity to sustain medium-term growth. According to the estimates of the International Monetary Fund (IMF), published in April 2022, “the group of advanced economies is the only one that in 2022 would summarize the growth trajectory registered before the pandemic, and even exceed it. The other groups of countries will remain, in the medium term (until 2025), on a much lower growth trajectory than projected before the pandemic, underscoring the lasting nature of the damage to growth that the pandemic inflicted on these economies.” With regard to the current outlook, this industry also faces major obstacles, mainly due to the economic and social circumstances in several Latin American
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countries. However, as will be seen in this report, entrepreneurs have been able to sustain and move forward with their businesses, adapting to a new normality and facing the harsh measures imposed by governments to try to contain the pandemic, also facing the volatility of markets, the decline in demand, the fall in trade, capital flows, economic deficit, financial instability and investment risks due to the current situation. The Economic Commission for Latin America and the Caribbean, published in 2021, the estimates of growth “the group of developed economies would have grown by 5.2% in 2021. The United States is estimated to have grown by 6.0% and the eurozone by 5.2%, while Japan is estimated to have grown by 2.4% and the United Kingdom by around 6.8%.In the group of emerging and developing economies estimated to have grown by 6.4% this year, China, with 8.0% growth, and India, with 9.5%, stand out. On the other hand, the dynamism would have been lower in some emerging sub-regions, such as the Middle East and North Africa (whose growth was 4.1%) and Sub-Saharan Africa (3.7%)”. On the other hand, the International Monetary Fund expects global growth to moderate from 5.9% in 2021 to 4.4% in 2022; that is, half a percentage point lower in 2022 than projected in the October edition of the World Economic Outlook (WEO), lar-
gely because of the cut in the projections for the two largest economies. Trade volume growth is projected to be accompanied by market-weighted GDP growth of 5.3% in 2021 and 4.1% in 2022 (instead of the 5.1% and 3.8% previously forecast). GDP growth has been driven by a determined monetary and fiscal policy and by the resumption of economic activity in countries that have been able to distribute COVID-19 vaccines on a large scale. Growth dynamics in 2021
were led by domestic demand. Private consumption was a key driver, contributing about half of second-quarter growth. The commission stated that “there was also a notable rebound in investment, in a context of recovering demand and a higher level of construction activity. On the other hand, although exports grew significantly, the net external sector (exports minus imports) made a negative contribution to output growth, due to the sharp increase in imports”.
VOLUME OF WORLD MERCHANDISE TRADE 2015Q1 - 2022Q4 Index, 2015=100 125 120 115 110 105 100 95 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4
90
Merchandise trade volume current forecast
Trend 2011 - 2019 previous forecast
Source: WTO and UNCTAD for trade volume data; WTO for forecasts.
LATIN AMERICA BROADCAST MARKET REPORT 2022
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Notably, the Broadcast 2022 Latin American Integrators Market Study analyzes how this economic outlook would impact the industry, country by country, from the perspective of entrepreneurs who are part of this Top 50 made by TVyVideo. In addition, it addresses key industry information, such as import figures executed by companies in each country, the most used equipment brands in the region, the segments with the highest investment in Broadcast, including sales figures of several of the companies, along with detailed. Contact data on the companies that are part of the 2022 ranking are also found in this report. Readers will also learn a complete overview of integrators in Latin America, as well as comments and recommendations on technology trends and investment opportunities. The new report brings with it a deeper analysis of the current situation and future prospects of a key
industry for the region. In addition, for 2022, the market study includes new chapters: - Key aspects of the industry: analysis of integrators’ brands and imports. - Perspectives of integrators and experts consulted. - Top 50 ranking of Broadcast integrators. - Rising freight and cargo prices: What is the reason for this, and what are the forecasts? - Development - Evolution of Broadcast and its relationship with other technological services in Latin America. - Latin American economies are gradually recovering. Technology trends, growth and opportunities. In addition, the document develops other key aspects of the industry raised from the market growth during the last year, originated by the evolution of the market, top brands in broadcast equipment used during the last year, broadcasting solutions in Latin America and equipment imports during 2021.
REGION SEGMENTS IN RELATION TO THE END USER ALL LATIN AMERICA 2,90% 4,62% 6,18% 34,90% 22,30%
CORPORATE GOVERNMENT AND EDUCATION COMMERCIAL TOURISM HEALTH RESIDENTIAL
29,10%
Source: Survey conducted on the online platform among Broadcast Integrators between March 18, 2022 and May 20, 2022.
TARGET AUDIENCE • Broadcast industry integrators • Broadcast equipment manufacturers and distributors • Market analysts and researchers • Government and financial institutions • Investors • End users with projects that include Broadcast services
LATIN AMERICA BROADCAST MARKET REPORT 2022
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CHAPTER 1
STATE OF TECHNOLOGIES IN LATIN AMERICA 2021-2022 For the year evaluated (2021), it is evident that the proportion of the Corporate, Government and Education and Commercial segments reached by Broadcast teams (end users) maintain a growth trend in the range of 10 points, that is, in percentages of project participation in relation to the end user, said participation is evident from 25 to 35% throughout Latin America. However, the percentages of participation in project care decrease significantly, for the Residential and Health segments.
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SEGMENTS BY REGION IN RELATION TO THE END USER ANDEAN REGION
MEXICO AND CENTRAL AMERICA 5.16%
8.70%
5.16% 8.70%
36.80%
20.28%
30.43%
13.04%
17.39%
21.74%
32.60%
SOUTHERN CONE
ALL LATIN AMERICA
25%
2.90% 4.62% 6.18%
34.90%
41.67% 22.30%
33.33%
GOVERNMENT AND EDUCATION
29.10%
CORPORATE
COMMERCIAL
HEALTH
TOURISM
RESIDENTIAL
Source: Survey conducted on the online platform among Broadcast Integrators between March 18, 2022 and May 20, 2022.
LATIN AMERICA BROADCAST MARKET REPORT 2022
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ORIGIN OF IMPORTS OF BROADCATS EQUIPMENT IN 2021
MEXICO & CENTRAL AMERICA CHINA UNITED STATES MEXICO
30.00% 50.00%
20.00%
8.00%
ANDEAN REGION
15.45%
CHINA UNITED STATES MEXICO JAPAN
49.55%
27.00%
12.00%
SOUTHERN CONE CHINA UNITED STATES MEXICO
27.00%
61.00%
Source: Survey conducted among Broadcast integrators between March 20 and May 20, 2022
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Broadcast Technology Trends 2022 REMOTE PRODUCTION
4,5 4
IP CONNECTIVITY
3,5
5G BAND TRANSMISSION
3 2,5
OTT
2
INTEGRATION WITH AUGMENTED REALITY SYSTEM
1,5 1
DHR
0,5 0
REMI REMOTE PRODUCTION
IP CONNECTIVITY
5G BAND TRANSMISSION
OTT
INTEGRATION WITH AUGMENTED REALITY SYSTEM
DHR
REMI
LATIN AMERICA BROADCAST MARKET REPORT 2022
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Origin of imports of Boadcats equipment in 2021 IMPORTS OF INTEGRATORS IN BROADCAST EQUIPMENT - CENTRAL AMERICA 2021- 2022 COUNTRY
DATE
COMPANY
MAIN ORIGINS
VALOR EN USD
PanamaJ
an 2021-
Data Serve
China, United States, Colon Zone, Vietnam, Mexico, Hong Kong, Taiwan, Panama, Guatemala, Korea
$ 83.799.656
SoniVision$
China, Hong Kong, United States, Panama, Taiwan, Mexico, Malaysia, Costa Rica, Germany
Mar 2022
181.778.513 C
CIF
IF
IMPORTS OF INTEGRATORS IN BROADCAST EQUIPMENT - ANDEAN REGION 2021- 2022 COUNTRY ColombiaJ
DATE
COMPANY
an 2021-
NYL
China, Vietnam, Mexico, United States, Israel, Taiwan, Thailand, Australia, India
$ 322.113.865
FOB
Video Broadcast
China, United States
$ 710.944.357
FOB
Mar 2022
MAIN ORIGINS
VALOR EN USD
IMPORTS OF INTEGRATORS IN BROADCAST EQUIPMENT - SOUTHERN CONE 2021- 2022 COUNTRY Chile
DATE
COMPANY
MAIN ORIGINS
VALOR EN USD
Jan 2021
Videocorp
China, Vietnam, Mexico, United States, Brazil, Finland, Taiwan, Thailand, Italy
$ 1.017.381.550
Mar 2022
CIF
FOB (Free on Board) CIF (Cost, Insurance and Freight) *Source: Descartes Datamyne with official information
At the same time, foreign trade has presented strong shocks in terms of imports and exports, which is proportionally related to the drop in imports in broadcast systems. However, with the reactivation of capital flows, supply and demand may increase, which would allow a growth in
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imports for companies. Note: For these tables, only the import data of equipment for broadcast were taken into account. The complete list of tariff codes analyzed for this chapter can be consulted in the Reference Index on page 109.
THE MOST USED BROADCAST BRANDS IN LATIN AMERICA IN 2021
CAMERA SYSTEM SOLUTIONS SONY PANASONIC JVC CANON AVID TELESTRAM HITACHI BLACKMAGIC
3.12% 4.69% 4.69% 6.25% 7.81% 54.69%
7.81% 10.94%
3.69%
LIGHTNING DEXEL LITEPANELS DESISTI FRESNEL KINO FLO DRACAST NEEWER MARK II ARRI BESCOR FLUOTEC
5.69% 5.69%
21.38%
6.69% 6.69% 17.38%
6.69% 8.70% 8.70%
8.70%
3.67% 5.67%
STRUCTURED CABLING BELDEN FURUKAWA PANDUIT CANARE AMP LEVITON HUBBEL NEXT
5.67% 6.67% 6.67%
45%
12.33% 14.33%
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THE MOST USED BROADCAST BRANDS IN LATIN AMERICA IN 2021 9.28%
SOLUTIONS FOR FILE-BASED WORKFLOWS SONY MASSTECH EVS SPECTRA LOGIC ROSS SAP HARMONIC
21.29%
9.28% 11.28%
20.29% 13.29% 15.29%
OUTDOOR 4K/HD MOBILES SONY BLACKMAGIC SAMSUNG CANON FOR-A GRASS
7.09%
STUDY SYSTEMS IP SONY AEQ NEWTEC SHURE HARMONIC ROSS
9.09% 9.09%
38.36%
10.09%
27.28%
Source: Survey conducted among Broadcast integrators between March 20 and May 20, 2022
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6.33% 8.33% 9.33% 45.67% 13.67%
16.67%
THE MOST USED BROADCAST BRANDS IN LATIN AMERICA IN 2021
SOFTWARE PLATFORMS IOS LINUX AEQ WINAMP VMIX ANDROID
10,00% 11,00%
28%
12,00%
15,00%
24%
22.22%
MICROPHONES SHURE RODE AUDIO-TECHNICA
48.15% 29.63%
LATIN AMERICA BROADCAST MARKET REPORT 2022
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THE MOST USED BROADCAST BRANDS IN LATIN AMERICA IN 2021
BRANDS USED IN THE MOST OUTSTANDING PROJECT 2021 SONY LIBEC AJA CANON AVID TELESTREAM ROSS
8.14% 8.14% 37.06%
9.14% 10.24% 10.24%
17.14%
6.00%
AUDIO AND RADIO SYSTEMS SONY AVID APOGEE SENHEISER AUDIOTECHNICA AUDIO ELECTROVOICE
7.50% 8.00% 40.50% 12.50%
25.50%
Source: Survey conducted among Broadcast integrators between March 20 and May 20, 2022
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CHAPTER 2
INDUSTRY INTEGRATORS OUTLOOK
LATIN AMERICA BROADCAST MARKET REPORT 2022
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Mexico
Comtelsat
Viewhaus
• Describe the services your company provides: Media & Entertainment Solutions Integrator.
• Describe the services your company provides: AV integration, Professional Video equipment sales, service and support.
Israel Gómez Director Mexico
• Number of employees your company has: 50. • Year company was founded: 1997. • Do you have any certifications? Which ones? ISO. • In which cities / countries do you have a presence? México. • Share with us an approximate sales figure (in dollars) in 2021. USD $20.000.000. • Share with us details of the most outstanding project of the last year. Operations managed by ESPN and Fox Sports. • What are the most common applications in the Broadcast solutions you implement? Liveproduction.
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Juan Carlos Medina Director Mexico
• Number of employees your company has: 38. • Year company was founded: 2003. • Do you have certifications? Which ones? AVIXA, PSNI. From multiple manufacturers such as Extron, Biamp, Sony, Shure, Sharp, Canon, Kramer, QSC. • In which cities / countries do you have a presence? Guadalajara, CDMX, San Luis Potosi. • Share with us an approximate sales figure (in dollars) in 2021. USD $4.000.000.
THE PERSPECTIVES OF INTEGRATORS
Central America
Video México Carlos Herrera Director Mexico
• Describe the services your company provides: Audiovisual Production Services, Live Event Transmission, Institutional Video Production, TV Commercials, Live Event Production, CCTV, Closed Circuit TV, Streaming, Solutions for audio and video transmission. • Year the company was founded 1989. • In which cities/countries do you have a presence? Mexico: CDMX, Queretaro, Monterrey, Cancun, Guadalajara, Leon, Celaya. • Share with us an approximate sales figure (in dollars) in 2021. USD $400.000. • Share details of the most outstanding project of the last year. RedBull God Level, Hay Festival.
Broadband Solutions, S. A. Yanira Guillen General Manager Guatemala
• Describe the services your company provides: Official representative of Sony Professional for Guatemala and integrator of TV sets, photography, professional video, virtual, real-time transmission, etc. • Number of employees your company has: 10. • Year the company was founded: The company started in 1980 under the name of Aerolux and in 2001 it renewed its name to Broadband Solutions, S.A. • Do you have certifications? Which? Certificates from Sony and other prestigious manufacturers. • In which cities/countries do you have a presence? Guatemala. • Share with us an approximate sales figure (in dollars) in 2021. USD $1.500.000. • Share details of the most outstanding project of the last year. Renovation of Broadcast studio systems - ALBAVISION Group. • What applications are the most common in the Broadcast solutions that you implement? Studio systems, switchers, lighting, replays systems, LATIN AMERICA BROADCAST MARKET REPORT 2022
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Andean region
servers, cabling, etc. • Cuéntenos sus perspectivas de crecimiento para 2022. Tell us your growth prospects for 2022.
Asucap Tv San Jorge
Ricardo Jaime Director Contenidos Digitales Colombia • Describe the services your company provides: Community Television, Internet ISP, Local TV Channel, advertising. • Number of employees your company has: 50. • Year the company was founded: 1991. • Share details of the most outstanding project of the last year. Expansion of fiber optic network, creation of OTT. • What applications are the most common in the Broadcast solutions that you implement? LIVEU, VMix, Adobe. • Tell us about your growth prospects for 2022. Increase our user database, consolidate the company’s digital transformation process (online billing, accounting, news production system, OTT, etc.)
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THE PERSPECTIVES OF INTEGRATORS
Lifecom
Javier Gaitán Director Colombia • Describe the services your company provides: Audiovisual production, live broadcasts, animation. • In which cities/countries do you have a presence? Colombia, and strategic allies in America and Europe. • Year the company was founded. 2008. • Share with us an approximate sales figure (in dollars) in 2021. USD $500.000. • Share details of the most outstanding project of the last year. ANA Animated Short Film using the virtual production technique. four awards at international festivals. • What applications are the most common in the Broadcast solutions that you implement? OBS, Wirecast, streamyard, V mix. • Tell us about your growth prospects for 2022. Position ourselves in virtual reality.
Advicom CIA. LTDA Paul Rojas President Ecuador
• Describe the services your company provides: ADVICOM Cia. Ltda. is an Ecuadorian company, dedicated since 1998 to integrating, marketing, installing and providing technical maintenance services to Systems, Networks and Professional Equipment for AM, FM and TV Broadcasting Stations, Radiocommunications, Wireless, Data Links, Audio & Video Professional, Video and Audio over IP, OTT, M2M, IoT, Logical and Electronic Security, Fiber Optic and Satellites, Telemetry and Telecommunications in General. Construction and/or rental of infrastructures (booths, energy and towers), with qualified personnel and adequate instrumentation. We carry out engineering studies for ARCOTEL, as well as supply and install systems under the “TURNKEY” modality. • Year the company was founded. 1998. • Do you have certifications? Which? YES. SATELLITE (ITU). MANUFACTURERS: NAUTEL, IDC, HISPASAT, RYMSA, SAF. • In which cities/countries do you have a presence? Quito, Guayaquil, Cuenca and Ambato. • Share with us an approximate sales figure (in dollars) in 2021. USD $ 1.500.000. • Share details of the most outstanding project of the last year. Educational OTT platform.
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THE PERSPECTIVES OF INTEGRATORS
• What applications are the most common in the Broadcast solutions that you implement? RF transmission system: AM, FM, TV. • Tell us your growth prospects for 2022. New FM frequency concessions for community radio stations.
Telvicom S.A. Carlos Anciburo Director-Gerente Peru
• Describe the services your company provides: We are an engineering services company dedicated to the Integration of Broadcast Systems for Digital Television. • Number of employees your company has: 28. • Year the company was founded: 1998. • Do you have certifications? Which? Dun & Bradstreet SIAL Certification No. 93-419-3546.
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Southern Cone BMSS TECH, S.A. Bernardo Gonzáles Director Panama
• Describe the services your company provides: Sales, service and integration of audiovisual and broadcast solutions. • Year in which the company was founded. 2016. • Share with us an approximate sales figure (in dollars) in 2021. USD $120.000.00. • Share with us details of the most outstanding project of the last year. We did not have any outstanding projects, it was a year of supplying equipment to customers. • What are the most common applications in the Broadcast solutions you implement? Supply of equipment such as switches, cameras, cables. • Tell us about your growth prospects for 2022. We expect to grow by 30% compared to 2021.
Sistemas de Video Comunicación SA Domingo Simonetta President Argentina
• Describe the services your company provides: Professional video, audio, film, IT systems. • Number of employees your company has: 30. • Year the company was founded. 1985. • In which cities/countries do you have a presence? Argentina, Uruguay and Paraguay. • Share with us an approximate sales figure (in dollars) in 2021. USD $12.000.000. • What applications are the most common in the Broadcast solutions that you implement? Video projects, live audio, lighting and film. • Tell us about your growth prospects for 2022. Plans are for 20% growth.
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Viditec S.A
VideoSwitch SRL
• Describe the services your company provides: Integrator and broadcast sales and service for Sony.
• Describe the services your company provides: VideoSwitch is dedicated to the design, development, manufacture and integration of professional video and audio equipment for cable channels, air channels, production companies and companies related to generation, distribution, processing and broadcasting.
Javier Clerici Technical supervisor Argentina • Number of employees your company has: 100. • Year the company was founded. 1982. • Do you have certifications? Which? Extron, Newtek, Avixa.
Manuel Gutierrez Casares Marketing Analyst Argentina
• Number of employees your company has: 18. • Year the company was founded. 1989. • Do you have certifications? Which? We are in the process of certification of ISO-9001: 2015 standards.
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THE PERSPECTIVES OF INTEGRATORS
Tecsys do Brasil Industrial Ltda
Carlos Henrique Ferreira Export Manager Brasil • Describe the services your company provides: Broadcast equipment such as IRDs, Encoders, Multiplexers, Remultiplexers, ISDBT TV Transmitters, we are specialists in ISDBT solutions. • Number of employees your company has: 129. • Year the company was founded. 2000. • Do you have certifications? Which? ISO 9001, Anatel. • In which cities/countries do you have a presence? All Brazil, Argentina, Uruguay, Paraguay, Peru, Bolivia, Colombia, Ecuador.
• Share with us an approximate sales figure (in dollars) in 2021. USD $500.000.00. • Share details of the most outstanding project of the last year. TV Accion Paraguay System of Re Multiplexers with Satellite Reception. • What applications are the most common in the Broadcast solutions that you implement? Solutions in ISDBT. • Tell us your growth prospects for 2022. 30% growth.
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Other regions
Aeq-kroma
Gustavo Robles Paredes Sales Manager Spain • Describe the services your company provides: Audio and video technology equipment for professional radio and television applications. • Number of employees your company has: 102. • Year the company was founded. 1979. • Do you have certifications? Which? r&d, ce, fcc, etc. • In which cities/countries do you have a presence? With offices in Madrid, Mexico City, Barcelona, Miami and New Delhi with dealers, we have a presence in 105 countries. • Share details of the most outstanding project of the last year. 998 radio studios on digital console aeq capitol in the national radio of India.
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• What applications are the most common in the Broadcast solutions that you implement? Mixing tables, audio encoders, intercom systems, and video monitors. Equipment of an OBVan in 4K for sporting events. • In which cities/countries do you have a presence? Presence in different Latin American countries. • What applications are the most common in the Broadcast solutions that you implement? OBVan and TV Forums. • Tell us about your growth prospects for 2022. We plan to grow between 5 and 10%.
CONSULTANT PERSPECTIVES
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“THE EVOLUTION AND GROWTH OF THE SECTOR IS NOT ONLY IN UNDERSTANDING HOW THE MARKET, OR POLICIES, OR FINANCING MOVE, BUT IN CREATION”.
Germán Franco
Director Centro Ático Pontificia Universidad Javeriana Colombia
• WHAT IS YOUR PERCEPTION OF THE INDUS-
TRY AT THE PRESENT TIME IN LATIN AMERICA? I think there are several issues that set the context. The pandemic had two consequences: the audiovisual content industry had a decline; creators and scriptwriters went bankrupt, small companies disappeared, companies such as children’s content producers, video game companies for entertainment were the ones that suffered economically with the pandemic. Another consequence is the growth trend of the content creation industry due to the bankruptcy of
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small companies. It is worth noting that it is not an industry of large production companies. On the other hand, an optimistic trend or consequence is that today, society values its own content and is willing to consume it; there is an important niche there. It is also important to highlight that the evolution of the market allows us to say that we have gone from a century of several brands, with mass media and now there is micro-segmentation. Now, the industry is not monopolized, it is not only in the United States. Now, it will have continuity. However, we must understand that in Latin America there are difficulties because we have no notion of territory and there is no high-level cultural content. In addition, the evolution and growth of the sector is not only in understanding how the market moves, or policies, or financing, but also in creation. An industry is strong when there are diverse creators who generate content for different platforms. This, then, takes back a positive perception and generates opportunity for the importance of content, which allows a faster recovery for the sector. Specialized content would open up markets, since animation
CONSULTING EXPERTS formats are gaining strength, for example. In a broader panorama, in terms of market opportunities, Latin America has been powerful, Mexico, Brazil, Venezuela, have set the trend in productions designed for melodrama. Perhaps a not so optimistic scenario is given by the weight that trans-media discourses are having, the expansion, because it generates large investments in tools that do not correspond. It is necessary for the region to understand other ways of perceiving the human role, learn to implement the platforms and to know when to use them. • HOW INFORMED ARE USERS, SOCIETY AND
INDUSTRY ABOUT NEW TECHNOLOGIES IN THE BROADCAST MARKET? Poorly informed, because they have the wrong interests with digital transformation. We are convinced that the machine has transformative power. Technology companies convince us that machines will make our lives better. Therefore, we must recognize that the strength is in content and creation, we have been bad at selling this idea. On the other hand, it is an industry that believes that there is a technological revolution, this can help us, but we must think about the user, the projects, the navigator. The investment is currently made for platforms and tools, leaving aside investment in content. Also, we need to improve information, self-regulation of the state, of the universities. The technology discourse generates noise because we do not ask ourselves the right questions, we have to make sense of the platforms we use. We cannot think only about industrial automation or platforms governed by algorithms. We can’t just give people what they want. The platforms condition the format. We have a responsibility to question ourselves.
In addition, it is necessary that brands in the process not only worry about advertising, but also think about the content. • HOW SHOULD ACADEMIA CONTRIBUTE TO THE
INDUSTRY, WHAT NEEDS TO BE DISCUSSED, AND HOW CAN THIS HELP THE INDUSTRY? Universities try to train professionals for the industry. The challenge is to train specialized professionals. We are standardized, we are being very timid. From another point of view, there are absences in animation, in creative design, in content management, this is what we have to work on. Another role that should be fundamental for the academy is to be able to help society understand these issues. We are not doing important research in the sector; today, this is done by private companies. In the case of Colombia, there is an inbreeding of publications with little critical spirit where the evolution of formats and the economy of the creative industries are discussed and analyzed. Faced with this, and with the arrival of the Orange Economy policy, the universities remained silent, we lacked research capacity. The work of universities is to criticize, study, debate, we have the obligation to propose to citizens, to do research and disseminate information. Today, policies are not nourished by research directed by the academy. We must return to the production of content, to debate, to the spaces that finance market research. Universities must influence public policies that promote the independence of content, as well as of the market. For this, it is necessary to articulate with other actors. In relation to this, it is a disorganized sector, the associations follow different paths, there are no interlocutors to manage a policy without fragmentation.
LATIN AMERICA BROADCAST MARKET REPORT 2022
31
CONSULTING EXPERTS • WHAT IS THE PANORAMA IN COLOMBIA
COMPARED TO OTHER COUNTRIES? In the last decade in Colombia, we do not have so many creators, products, financing strategies, subsidies, types of products and specialized content. In terms of ethnic and children’s content, we have had a lot of strength. Three decades ago, research was generated from the academy because there were public policies that promoted it. We have a lot of investment in technology, and we despise content. We invested almost 400,000 million USD in DTT, something that could be solved with the Internet. Likewise, we politicized information, monopolized productions, which reduces the richness of content diversity. In the same way, under the production stimu-
32
lus, what stories are we telling ourselves? What opportunities are there? We make more films, the stories are more diverse. The channels have taken up their own projects, and they are the ones that move production in the country. The industry must encourage the user to rethink and stand up to tell their own stories. It is also necessary to be able to access tax benefits for those who come from abroad to make films. We cannot divide ourselves between the cultural and the commercial. There has to be a balance and sustainability, and stop thinking that the market is local and visualize beyond, make new working models. We have to understand that brands are fundamental for decision-making and broaden content providers.
“TODAY INFORMATION IS AT YOUR FINGERTIPS. IT IS NO LONGER ONLY THE YOUNGER GENERATIONS THAT THEY CONSUME CONTENT THROUGH DIGITAL PLATFORMS”.
Gustavo Embon
Broadcast Operations Director Paramount Hub Latam Sur • WHAT IS YOUR PERCEPTION OF THE INDUSTRY AT THE PRESENT TIME IN LATIN AMERICA? From a purely technological aspect, the industry in Latin America is undergoing a moment of transformation, undoubtedly driven by the emergence of multiplatform, associated also with the need to adapt content to new devices. • HOW WOULD YOU DESCRIBE THE EVOLUTION OF THE INDUSTRY IN THE LAST 3 YEARS? As I mentioned before, in recent times the industry has undergone considerable changes in the tech-
nological field and in the way in which content is consumed, forcing us to adapt and implement technologies in line with the new business models. • DO YOU CONSIDER THAT BROADCAST CUSTOMERS AND USERS ARE INCREASINGLY BETTER INFORMED AND MORE KNOWLEDGEABLE ABOUT NEW TECHNOLOGIES IN THE MARKET? HOW CAN THIS AFFECT INTEGRATORS? Nowadays, information is at our fingertips. It is no longer only the younger generations who consume content through digital platforms. Currently, content is planned for multiscreen from its conception and all areas involved in the creation and distribution of these, we work to achieve an interaction between the different platforms of consumption, so that they can coexist and even complement and feed each other. • IN YOUR OPINION, IN WHICH LATIN AMERICAN COUNTRIES IS THE INDUSTRY GOING
LATIN AMERICA BROADCAST MARKET REPORT 2022
33
CONSULTING EXPERTS THROUGH A GOOD MOMENT? WHAT GLOBAL TRENDS ARE BEING KEY IN THE INDUSTRY IN RELATION TO CONNECTIVITY? Personally, I think Argentina and Chile are going through a good moment from the point of view of content production and distribution of locally generated signals. Nowadays, the requirement to be able to share content quickly and securely between our different distribution points globally is key, therefore, connectivity plays a fundamental role in the busi-
34
ness and the industry in general. In this sense, I believe that the resource of having content in the cloud has become one of the most relevant global trends in terms of connectivity. • WHAT ARE THE MAIN TECHNOLOGICAL TRENDS THAT WILL PREVAIL IN 2022? The consolidation of technologies that facilitate the distribution and transmission of content to make it available at anytime and anywhere in the world.
CHAPTER 3
LATIN AMERICA BROADCAST MARKET REPORT 2022
35
BROADCAST INTEGRATORS IN LATIN AMERICA
36
Mexico No.
Company
Contact
Website
Country
Recognition percentage
1
MEDIA PRO
Andrés Hernández 34 93 476 15 51 comunicacio@mediapro.tv
www.mediapro.tv
MEXICO
11,59%
2
COMTELSAT
Israel Gómez 5255 15797000 israelg@comtelsat.com.mx
comtelsat.com
MEXICO
10,43%
3
AMTEC
Andrés Martínez 52 55 5523-1418 ventas@amtec.com.mx
www.amtec.com.mx
MEXICO
10,02%
4
MAGNUM
David Camacho 52 55 5615 9262 dcamacho@magnumdigital.com.mx
magnumdigital.com.mx
MEXICO
9,13%
5
TELETEC
David Alexander 52 55 5000 9400 david@teletec.com.mx
www.teletec.com.mx
MEXICO
8,73%
6
SISTEMAS DIGITALES
Enrique Gutiérrez 52 55 5639 3510 e_gutierrez@sistemasdigitalesav.com.mx
www.sistemasdigitalesav.com.mx
MEXICO
6,48%
7
VIEWHAUS
Juan Carlos Medina 52 33 31239355 juancarlos@viewhaus.com.mx
www.viewhaus.com
MEXICO
6,48%
8
EXCELENCIA
Marco Rabadan 52 55 5523 0350 marco@excomunitec.com.mx
www.excomunitec.com.mx
MEXICO
6,27%
LATIN AMERICA BROADCAST MARKET REPORT 2022
37
México Mexico GRUPO ARTE Y TECNOLOGÍA - ARTEC
Jaime Tovar 52 55 5659 9060 jtovar@artec.com.mx
www.artec.com.mx
MEXICO
5,73%
10
SEAL TELECOM
Ignacio Lucero 55 11 3877 4000 luceroignacio@hotmail.com
www.sealtelecom.com.mx
MEXICO
5,25%
11
GRUPO AUDIO DISEÑO
Servando Chagoya 55 55300380 grupo@audiodiseno.com.mx
www.audiodiseno.com.mx
MEXICO
4,98%
12
COLOR CASSETTES
Ernesto Aguilar 52 55 1084 2300 eaguilar@colorcassettes.com.mx
www.colorcassettes.com.mx
MEXICO
4,70%
13
PUNTO TI
Aranzasú Gallardo 52 55 3874 0959 aranza@puntoti.com.mx
www.puntoti.com.mx
MEXICO
4,70%
14
SIMPLEMENTE
Rune Hansen 52 55 5584 2121 rune@simplemente.net
www.simplemente.net
MEXICO
3,34%
15
VARI
Hugo Patiño 91832700 hugo@varinter.com.mx
www.varinter.mx
MEXICO
2,18%
9
38
Central America No.
Company
Contact
Website
Country
Recognition percentage
1
COCATEL
Allen Maldonado 504 255 06 04 allen@cocatel.com
www.cocatel.com
HONDURAS
19,07%
2
SONIVISION
Enrique Somogyi 506 22 315685 info@sonivision.co.cr
sonivision.co.cr
COSTA RICA
14,26%
3
DATA SERVE
Verónica Militza 507 275 5850 ventasweb@dspma.com
www.dspma.com
PANAMA
10,71%
4
AVCOM
Camilo Aranguren 57 1 533 4739 caranguren@avcom.com.co
www.avcom.com.co
PANAMA
10,14%
5
COSTEL
Gullit Rodriguez 50377448592 ventas@costelsa.com
www.costelsa.com
EL SALVADOR
8,08%
6
MEDIAPRO
Andrés Hernández 34 93 476 15 51 comunicacio@mediapro.tv
www.mediapro.tv
CENTRAL AMERICA
9,45%
7
ATELSA
Allen Maldonado 504 9 992 3478 allen@cocatel.com
www.atelsa.com
GUATEMALA
6,53%
8
BROADCAST INTEGRATION SYSTEMS
Claudio Segura 506 83 079 0772 dispath@bis-cr.com
www.bis-cr.com
CENTRAL AMERICA
8,53%
9
BROADBAND SOLUTIONS
Yanira Guillen 502 57506884 yaniraguilleno@gmail.com yanira@broadbandsolutions.com.gt
www.broadbandsolutions.com.gt
GUATEMALA
7,73%
SEAL TELECOM
Ignacio Lucero 55 11 3877 4000 luceroignacio@hotmail.com
www.sealtelecom.com.mx
COSTA RICA / PANAMA
5,50%
10
LATIN AMERICA BROADCAST MARKET REPORT 2022
39
Región AndeanAndina Region No.
Company
Contact
Website
Country
Recognition percentage
1
SEEL
Carlos Fernández 57 1 252 3800 cifernandez@seel.com.co
www.seel.com.co
COLOMBIA
11,87%
2
TELVICOM
Carlos Anciburo 51 1 6189090 canciburo@telvicom.com
www.telvicom.com
PERU
11,75%
3
SONOTEC
Alberto Borja 1 305 454-1052 aborja@sonotecgroup.com
www.sonotecgroup.net
ECUADOR / BOLIVIA
11,52%
4
IRADIO
Yeiber Guerrero 57 1 434-3500 yguerrero@iradio.com.co
www.iradio.com.co
COLOMBIA
11,22%
5
AVCOM
Camilo Aranguren 57 1 533 4739 caranguren@avcom.com.co
www.avcom.com.co
COLOMBIA / VENEZUELA
10,87%
6
SEAL TELECOM
Ignacio Lucero 55 11 3877 4000 luceroignacio@hotmail.com
www.sealtelecom.com.mx
COLOMBIA / PERU
6,82%
7
MEDIA PRO
Daniel Álvarez 34 93 476 15 51 comunicacio@mediapro.tv
www.mediapro.tv
COLOMBIA / BOLIVIA / PERU
5,99
8
LA CURAÇAO
Carlos Cuadros 57 1 315-3441 carlos.cuadros@curacao.com.co
www.curacao.com.co
COLOMBIA
5,82%
40
Andean Region TELECUADOR
Humberto Yépez 593 2 2504862 hyepez@telecuador.net
www.telecuador.net
10
CORPORACIÓN VIDEO
58 2129930011 mail@corporacionvideo.com
www.corporacionvideo.com
11
ADVICOM
Alicia Maribel Veléz 593 2 243 2911 maribel.velez@advicom.ec
12
VIDEOELECT
13
9
ECUADOR
5,05%
VENEZUELA
4,17%
www.advicom.ec
ECUADOR
3,76%
Jesús Lozano 57 1 807 5625 jesus.lozano@videoelec.com
www.videoelec.com
COLOMBIA
3,70%
VCR
Hernán Suescún 57 1 7446629 suescun@vcr.com.co
www.vcr.com.co
COLOMBIA
2,59%
14
ERA ELECTRÓNICA
Hector Coche 304 497 9937 coche@eraelectronica.com
www.eraelectronica.com.co
COLOMBIA
2,47%
15
NYL
Román Becerra 57 1 6157283 cromanbecerra@nylelectronica.com
www.nylelectronica.com
COLOMBIA
2,41%
LATIN AMERICA BROADCAST MARKET REPORT 2022
41
Southern Cone No.
Company
Contact
Website
Country
Recognition percentage
CHILE
23,26%
1
VIDEOCORP
Alfonso Vergara 56 2 2431 61 00 avergarar@videocorp.cl
www.videocorp.com
2
VIDITEC
Maria Martha De Nucci 54 11 4122 1200 mmdenucci@viditec.com.ar
www.viditec.com
ARGENTINA
16,51%
3
MEDIA PRO
Daniel Álvarez 5411 5239 3333 comunicacio@mediapro.tv
www.mediapro.tv
ARGENTINA
11,20%
4
VIDEOSWITCH
Esteban Erize 54 11 4911 5551 ventas@videoswich.tv
www.videoswitch.tv
ARGENTINA
10,84%
5
SVC
Mariano Simonetta 54 11 5218 8000 msimonetta@svc.com.ar
www.svc.com.ar
ARGENTINA / URUGUAY / PARAGUAY
9,19%
www.bvstv.com
ARGENTINA / CHILE / URUGUAY / PARAGUAY
8,18%
CHILE
7,18%
Facundo Favelukes 54 11 4958 5638 facundo@bvstv.com
6
BVS
7
VGL
Álvaro Buzeta 562 2577 5900 contacto@vgl.cl
www.vgl.cl
8
OM SYSTEMS
Gustavo Spera 54 11 43085100 gspera@omsystems.com.ar
www.omsystems.com.ar
ARGENTINA
4,88%
9
SEAL TELECOM
Ignacio Lucero 55 11 3877 4000 luceroignacio@hotmail.com
www.sealtelecom.com.mx
ARGENTINA / CHILE
4,52%
VIDEOMEDIA
Hugo Fáez 56 2 3411718 hfaez@videomedia.cl
www.videomedia.cl
CHILE
4,24%
10
42
CHAPTER 4
DEVELOPMENT EVOLUTION OF BROADCAST AND ITS RELATIONSHIP WITH OTHER TECHNOLOGICAL SERVICES IN LATIN AMERICA In recent years, broadcast has been exposed as a solution and technological bet in the transmission of information through broadband broadcasting, and in turn has evidenced the increase and progress in the development of penetration, adoption and its effective use, which has allowed clear benefits of economic and social inclusion in the countries. According to data provided by the Inter-American Development Bank (IDB) there is “an increase in broadband penetration in Latin American and Caribbean (LAC) countries that are associated, on average, with an increase of 3.9% in gross domestic product (GDP) and 2.61% in productivity, as well as a net creation of more than 67,000 jobs”.
LATIN AMERICA BROADCAST MARKET REPORT 2022
43
The use of fiber optics advances unevenly Percentage of fiber optic connections over total fixed broadband connections 2018
2020
South Korea
83.9
Japan
80.8
Sweden
73.0
Spain
69.7
Portugal
52.5
Chile
32.8
OECD
29.2
France
27.6
Mexico
27.1
USA
16.5
Colombia
15.2
Italy
8.2
Germany
4.7
United Kingdom
3.9 0
20
Data from the second quarter of each year. OECD countries selected. Source: OECD
44
40
60
80
100
According to a study by Arthur D. Little and Ericsson, a 1 % growth in broadband penetration can produce an increase of up to 4.3 % in exports. Despite the importance that the implementation of this technology has taken on, currently 52% of the world’s population still does not have access to broadband. It is also true that, although it is essential to digitize financial services and Delaware, government, health and education, among others, this could lead to a widening of the digital divide if the problem of the lack of infrastructure is not solved first. The evolution of telecommunications, transmission equipment, broadcast systems and the need for their implementation have led to the creation of proposals that allow the acquisition of information in a more immediate and efficient way.
Proposals that have not been inherent in the world of production and post-production, since the way in which the message is transmitted is fundamental for the development of the markets. This, then, makes it possible to increase the demand for broadcast services and products. The global transmission equipment market was estimated at USD 4.43 billion in 2020. It is expected to reach a value of USD 6130 million by 2026, registering a Compound Annual Growth Rate (CAGR) of 5.66 % during 2021-2026. In relation to the market and more specifically, it is worth noting that in 2020, the global radio transmitter market size was US $715.6 million and is expected to reach US $739.3 million by the end of 2027, with a CAGR of 0.5 % during 2021-2027.
Digital competitiveness in Latin America 2020 Digital Competitiveness Index Score (100= most competitive)*
Position in the ranking
41
Chile
61,52
51
Brazil
52,10
54
Mexico
51,51
55
Peru
50,12
59
Argentina
61
Colombia
63
Venezuela
48,78 46,45 23,99
* Measures the ability of 63 economies to adopt and explore digital technologies. It evaluates three pillars: knowledge, technology and preparation for the future. Source: IMD World Digital Competitiveness Ranking
LATIN AMERICA BROADCAST MARKET REPORT 2022
45
According to the Mordor Intelligence report, “over the past few decades, consumer demand for better quality video and audio has resulted in products and broadcast equipment technology being rapidly upgraded. As content is produced in UHD and 4K formats, transmission in the same format to improve viewing quality has been driven to live IP production technology”. On the other hand, the study “BROADCAST EQUIPMENT MARKET: GROWTH, TRENDS, COVID-19 IMPACT AND FORECAST (2022 - 2027)” emphasized that bro-
adcasters are innovating through products to replace conventional SDI-based environments live production systems that offer system control and high efficiency “In addition, the growing popularity of high-efficiency video coding (HEVC) standards drives the demand for equipment, such as encoders, in the market. And also, the introduction of multichannel video encoders has enabled users to generate multiple different streams, resulting in reduced hardware”, the report stated. The study “IPTV systems, an imminent threat to the current broadcast media?” states how the TV over IP systems have shown a global growth, “developing digital video standards that allow improving the efficiency of transmission systems. Internet service providers or ISPs have been establishing a set of applications on the
same network infrastructure, thus providing a greater use and profitability to the network already deployed and creating the option to enter into competition with digital terrestrial TV and satellite television. In terms of supply and demand, the same study emphasizes that growth is linked to IPTV systems. “There are a series of applications and services that make this technology a more interactive tool for the user, such as television on demand, pay-per-view, personal video recorder, among others. It is of great importance to analyze the architecture and technology that facilitates the delivery of this service to users, this depends on providing customers with high quality signals and the reception of this service in the market. Faced with other factors contributing to the growth of the broadcast industry, it is necessary to address the growing use of smart devices, such as smartphones, tablets also, laptops and others. According to Pew Research Center, “the percentage of U.S. adults who own smartphones has doubled since 2011. In February 2021, 85% of U.S. adults said they owned a smartphone. This was a 4 % increase over February 2019. The adoption of these portable devices, along with high internet penetration, is showing high video consumption”.
Number of IoT devices in some Latin American countries from 2018 to 2023 500 415,7 400 342,7
247,1
224,6 200
100
178,2 138,2 81,9 23,3
0
Brazil
278,9
300
2018
105,6 31,1 2019
Rest of LAC*
203,6
Colombia
165,7 133,3
40,9
53,3
2020
2021
68,2
2022
86,4
2023
Source: Statistics. Note: the rest of LAC* correspond to countries such as Argentina, Bolivia, Chile, Peru, Uruguay, Paraguay.
46
Mexico
*
Transmission and streaming in Latin America In recent years, different sources document how the region has experienced a 103% increase in home internet connectivity, shifting audiences from traditional media sources to more modern media. Millennials and Generation Z consumers comprise more than 30% of all people in Latin America, with countries such as Brazil boasting a 20% Generation Z population. According to GlobalWebIndex, “a significant portion of the Latin American population is currently consuming content through digital media. Also, more than 90% of people in the region own smartphones and more than 70% own personal computers. This has helped to destabilize the traditional media market, driving more than 60% of the audience to
use video streaming services”. On the other hand, the Insider Intelligence report argues that the total number of OTT service users increased by 27.5%, to more than 117 million users in 2020. It noted that 87.8% of adult internet users consumed content through subscription service providers. The shift from broadcast equipment to softwareas-a-service (SaaS) also facilitates the evolution. SaaS-based infrastructure reduces the cost of infrastructure. In addition, the shift to pay-as-you-go model from broadcasters charging for equipment creates opportunities for the market.
How many Latin Americans pay for streaming? Number of platform subscriptions to video-on-demand (SVOD) platforms in 2020 and 2025 (in millions). Brazil
19.88
Mexico
14.91
Argentina
4.87
Colombia Peru
88% 98% 93%
3.90
82%
1.80
Others
78%
8.70
87%
* Forecasts ** Statista calculations based on source data, Source: Digital TV Research
LATIN AMERICA BROADCAST MARKET REPORT 2022
47
Investment and expenditure in production The IDB stated that in Latin America and the Caribbean in 2019 some US$5.7 billion were invested in audiovisual productions, driving the creation of more than 1.6 million direct and indirect jobs, according to a study by Olsberg SPI. The same entity expressed that countries with more developed audiovisual industries such as Brazil, Mexico, Argentina and, more recently, Colombia and Chile, “are exploring ways to strengthen audiovisual creation as an axis of attraction for global investments in a sector that moves billions of dollars and has an impact on such diverse branches of the economy as tourism and construction”. In the case of Uruguay, the Dominican Republic, Panama and Peru, among others, new centers are emerging that are seeking to position themselves as competitive locations for establishing film production services and audiovisual hubs”. Another important factor within the investment and expenditure is given by the consumption of audiovisual content, which makes it the capital of the digital economy. The region has established itself as an emerging area of a sector that has twenty years of stable growth: the entertainment industry and the
production of audiovisual content. Given these difficulties, the production of films and series, and their execution, plays a key role in boosting economic recovery in the short term; therefore, the allocation of budgets is fundamental. This is also due to the fact that, on average, 67% of production expenses have an indirect impact on other sectors. The Inter-American Development Bank stated that “subscription video on demand (SVOD) services, usually called streaming services, have consolidated Latin America and the Caribbean as a market that seeks to consume high quality local content. The entity added: “Large companies are investing in the production of original content for the Latin American market, thus adding their budgets to existing investment flows in the region”. In this regard, the IDB states: “for all of the above, investment in infrastructure for information and communication technologies (ICT) is considered a priority, governments should generate incentives and conditions in each country to promote investment in broadband infrastructure and adoption of transmission equipment”.
TV advertising revenue (millions) 475.4
500 450 400
421.2 388.4 348.7
350
289.2
300 250 200 150 100 50
21.7 23.6
25.5 28.1
18.1 21.6
31.1 36.3
17.8 25.9
0 1Q-2019 Private open TV Source: CNMC
48
2Q-2019
3Q-2019 Public open TV
4Q-2019 Pay TV
1T-2020
Broadcast and other services that impact the market in Latin American countries
Mexico According to Digital Tv’s analysis, “Mexico is the largest country in Latin America in terms of pay TV subscriber base. According to the IFT (Federal Telecommunications Institute), it grew by 300,000 subscribers -- 1.5 % -- during 2020 to reach 20.5 million as of December last year. Of these, 54.3% were received by satellite, 37.2% by cable and 8% by IPTV, which grew by 2% last year”. IFT’s most recent report states that in 2020, the percentage of users that reported contracting more than 100 pay TV channels increased from 20.9% to 26.8%. In 2020, 76.6% of 36.0 million households had a digital TV set.
Likewise, in that same year, the number of households that had a digital TV set increased by 1.4 million, this compared to 2019. This indicates that 96.1 % of households receive the digital TV signal and have a pay TV signal or decoder. Also, in 2020, 71.5 million people were free-toair TV signal users (61.2% of the total population aged six years and older). According to a study conducted by Prensario Zone, “of the free-to-air TV signal users, 45.8 million (64.1%) watch news programs, 38.4 million (53.7%) watch movies and 31.4 million (43.9%) watch soap operas”.
Cable TV subscriptions, OTT services in Mexico, in millions of connections 1Q16 - 4Q21 14
12
10
8
6
1Q16
3Q16
1Q17
3Q17
1Q18
3Q18
Pay TV (Cable)
1Q19
3Q19
1Q20
3Q20
1Q21
3Q21
OTT
LATIN AMERICA BROADCAST MARKET REPORT 2022
49
Costa Rica According to the publication of Plataformas.news “Costa Rican users are abandoning pay TV or subscription to opt for subscribing only to the Internet, not only to take advantage of the connection and the world of digital knowledge, but also streaming entertainment services such as Netflix, Disney+, Amazon Prime Video or HBO Max”. The country joins the trend of increasing Internet services to the detriment of pay TV. It is worth noting that until 2016 there were 185,488 more TV
subscribers, as indicated by the Superintendence of Telecommunications (Sutel). In 2020 there were 7,495 fewer subscriptions than the previous year, which translated into a decrease of 1%. From another point of view, in Costa Rica, within the service technology, TV through coaxial cable predominates (63%), followed by DTH (26%), and in last place, TV over IP and multipoint (11%).
Fixed Internet service grows in Costa Rica (number of subscribers 2016-2020 vs pay TV) 821.575
2016
636.087 831.907 744.041
2017
Pay TV Fixed Internet
883.883 834.784
2018 2019
874.088 904.714
2020
866.593 992.725 0
Source: Plataformas.news
50
100k 200k 300k 400k 500k 600k 700k 800k 900k 1000k
El Salvador Most of the advertising investment in El Salvador goes to broadcast TV, followed by radio and subscription TV. Digital media is still a smaller portion, but it is the fastest growing media. Independent national production of content is scarce in El Salvador, most of the content is produced by TV channels. The contents of subscription TV are mostly international and are acquired from regional wholesalers (about 90%). The contents of broadcast TV and subscription TV complement each other. According to the “Estudio sectorial de la competen-
cia en el sector de TV abierta en El Salvador”, “open and pay TV contents are complementary rather than competitive, since open TV channels are the ones that produce mostly national or local contents, while pay TV broadcasts mostly contents produced outside the country”. In the country, the relationship between freeto-air and pay TV is vertical. This is directed to the supply and demand of services, for this, to complete the content offer for subscribers, pay TV channels must broadcast the programming of free-to-air TV channels.
El Salvador Pay TV revenue
(MILLIONS OF DOLLARS, USD)
Tigo (Millicom)
25
Claro (América Móvil)
12
Sky (Televisa-AT&T) Universal Cable Others
2 1 4
Fuente: The Competitive Intelligence Unit.
LATIN AMERICA BROADCAST MARKET REPORT 2022
51
Panama So far, there are about 50% of households that have digital television in three regions. In the areas of Panama, Panama Oeste and Colon, there is 100% coverage of digital channels, which are already transmitting. There is no graph due to lack of data availability.
52
According to the government, “what is needed is that the people living in those areas, who still do not have a receiver with the UVT digital tuner, which is the standard format, acquire a receiver or a box with their respective antennas, so they can have the digital signal”.
Dominican Republic The Pay TV sector in the Dominican Republic has registered an increase in its subscriber base of 4.1% annually at the end of the second period of 2021, when it totaled 805 thousand users. The quarterly growth was 1%, according to the latest report published by the Dominican Telecommunications Institute (Indotel). The regulator’s study showed that the pay TV market is dominated by Claro. “The América Mó-
vil operator had 455 thousand clients at the end of Q2 2021, which represented a market share of 56.5%. The second-largest operator was Altice with 142 thousand users, 17.7% of the sector’s total. The rest of the companies did not even reach 5% of the market. In turn, Indotel revealed that the country had 9 million subscribers at the end of the second period of 2021, which marked an annual growth of 11.8%.
Pay TV subscribers in the Dominican Republic
751.641
789.501
812.398
801.870
789.066
789.601
2018
2019
2020
2021
689.869 589.562
403.716
2011
424.838
2012
464.924
2013
2014
2015
2016
2017
Source: The Competitive Intelligence Unit-CIU. Note: latest data available (2018).
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Guatemala Broadband penetration in the country is 42% in urban areas. The regulator does not provide data on broadband services, but according to a 2021 IDB report, only 64 % of the Guatemalan population has mobile broadband coverage. Adoption is among the lowest in Latin America and the Caribbean: fixed and mobile broadband penetration is 3% and 10%, respectively, far from the regional average of 11% and 66%. In addition, the IDB has a project underway for up to US$45 million to support digital transformation and access to connectivity in Guatemala.
The country’s spectrum has a total of 4,431 frequencies, of which 4,420 are for broadcasting, according to the technical parameters of the International Telecommunication Union (ITU). According to the article “Antenna Types and Operation” published in TES AMERICAS “1,543 frequencies are used for cable television transmission, and 1,183 for radio and television (UHF and VHF): 457 for television, 174 for AM radio and 552 for FM radio. The rest are fixed-point link frequencies, necessary to link data transmission between two antennas, but not necessarily involving broadcasting”.
Growth in the incorporation of fixed broadband and restricted TV 80% 71.6% 62.7%
60%
59.9%
58.3%
56.2%
52.0% 43.1%
44.1%
42.3%
40%
37.3% 31.5% 26.9%
20%
15.4%
20.6%
0% Guatemala
Argentina
Brazil
Fixed Broadband Source: The Competitive Intelligence Unit- CIU. Note: latest available data (2018).
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Chile
Colombia
Restricted TV
Mexico
Central America and Caribbean
Andean Region
Bolivia Despite the fact that 80% of the population has 4G coverage, less than half (49%) of the radio bases offering mobile telecommunications services are with 4G, while only 18% are with 3G and up to a third (33%) are with 2G. According to the Inter-American Development Bank, “the significant presence of radio bases with 2G and 3G technologies - which support lower speeds than 4G because they are older generation technologies, in many cases, may be due to the fact that the investment to replace 2G and 3G radio bases with 4G has to be accompanied by a much larger investment to deploy optical fiber to the radio base”.
This is because 2G and 3G radio bases that are too far away from the fiber optic backbone are often connected by links of lower capacity and deployment cost than fiber optics. The IDB states in the study “Digital connectivity in Bolivia: analysis, gaps and action plan” that despite “the efforts made to continue deploying fiber optics - from 2019 to 2020 the Fiber Optic Backbone Network has increased its extension by 9% (from 24,427 km to 26. 578 km) and to continue installing radio bases from 2019 to 2020 the amount has increased by 5 % (from 14,848 to 15,642) there is still a need to deploy digital connectivity infrastructure to connect the population that currently does not have access to quality and affordable broadband services”.
Mobile and broadband subscription price relative to salary (percentage) 40% 35% 30% 25% 20% 15% 10% 5% 0% Bolivia Fixed broadband affordability
ALC
OCDE Affordability of mobile band
Source: BID (2020)
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Colombia According to Kantar Ibope Media’s Target Group Index study, 69% of people say they listened to radio in the last 30 days; 52% did so via the internet. Of the people who listen to radio; 41 % listen via regular radio; 30 % on car radio; 28 % listen online via smartphone, and 12 % listen via computer or tablet. The Communications Regulatory Commission, in its latest Industry Report on the ICT and Postal sectors, noted that at the end of 2019 there were 1,588 registered radio stations in Colombia. According to the article “La radio, centenaria en Latam ‘’ published in TvyVideo magazine reference that
these “perceived $630 billion Colombian pesos in revenues throughout the year. Of these, 41.8% had a commercial purpose in their activity while 39.4% a vocation community and the remaining 18.8% were of public interest”. Likewise, the publication narrated that “commercial broadcasters concentrate most of the income, receiving $540 billion Colombian pesos for advertising in 2019. Likewise, it is important to note how this source of income has been showing a decreasing trend during the last years, decreasing by 21.7%, in real terms, between 2014 and 2019”.
CLARO
DIRECTV
UNE EPM
MOVISTAR
Source: Information reported by the operators through the Colombia TIC system
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ETB
HV TELEVISIÓN
OTHERS
2021-1S
2020-2S
2020-1S
2019-2S
2018-2S
2019-1S
2018-1S
2017-2S
2017-1S
2016-2S
2016-1S
2015-2S
2015-1S
2014-2S
2014-1S
Subscription television revenue by operator (2014-2021)
Ecuador As stated in the document, “Impact on productivity by the use of 5G technologies in Ecuador” “the use and benefits of mobile technology demonstrate the high demand for connectivity, which in the case of industries, will demand greater capacity, security and lower latency.
ge of 4.7 GB for OECD countries.
On the other hand, Ecuador has very low levels of technological adoption and innovation capacity, which could lead to gaps to take advantage of the potential of 5G”.
According to the GSA, “By September 2020, 101 mobile network operators have deployed 5G services in 44 countries. As of September 2020, about 440 5G devices were announced (77% support sub-6 GHz bands and 20% support millimeter bands; and only 15% of the total will be able to support both bands), of which 222 are commercially available”.
On the other hand, mobile data consumption in 2018 consumption was 490 MB per user; meanwhile, in 2019 it was 1025 MB per user, compared to an avera-
The above translates that mobile technology is not yet impacting to its full potential, one cause may be related to the costs associated with mobile broadband consumption.
Pay TV market share, by company 2021
12%
1% 2% DirecTV (AT&T) CNT TV
16%
Local Systems
42%
Setel S.A. Claro TV Satelital TV Cable
27%
Total 797 thousand
Source: BB Market Share
LATIN AMERICA BROADCAST MARKET REPORT 2022
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Venezuela According to the Office for Transparency, Venezuela, expressed through the article “COYUNTURA POR COVID-19 EXIGE GARANTIZAR ACCESO A INTERNET” that “the country faces the devastating effects of a Complex Humanitarian Emergency caused by the Great Corruption, overcoming the differences is much more challenging. According to the recent measurement of the Venezuelan Observatory of Public Services (Ovsp), only 34.2 % of households have a fixed connection to the network. Meanwhile, 54.8% of those surveyed in different regions of the country said they had service failures every day”. Disinvestment and lack of maintenance in the tele-
communications sector have led the country to have the worst coverage or speed indicators in Latin America. “This reality is compounded by hyperinflation and the low income of the majority of the population that depends on the public network, which limits their access to technological devices and prevents them from paying for the satellite service offered by private operators”, the observatory indicated. The increase in censorship, blockades and technical attacks against media and non-governmental organizations in the country are also obstacles to Internet access”, according to Freedom House. Likewise, the Venezuelan NGO, in a report, revealed that in 2020 the blocking of digital media increased by 133 %.
Global Pay TV & Online Video Subscription Markets (US$ Billions) $120 $100 $80 $60 $40 $20 0 2016 Cable
2017 Satellite
2018 Online Video
2019 Virtual Pay TV
Source: Omdia
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IPTV
1T-2020 DTT
Peru The Ministry of Transport and Communications (MTC) granted 523 new authorizations that will benefit more than 2,200,000 people with new FM radio stations. In addition, more than 840,000 Peruvians will benefit from TV stations in the VHF band, which will offer a greater variety of programming. According to the Red de Periodistas del Sur, “of the total number of authorizations, 339 will provide radio service and 184 are destined to broadcast television signals. The objective is to entertain and promote education, culture and national integration. 57.7% of the authorizations were for commercial purposes, 39.6% for educational purposes and
2.7% for community purposes”. In addition, there was a numerical growth with respect to the previous year. “The number of authorized broadcasting stations increased by 5.2 % with respect to 2020”, said the general director of Telecommunications Authorizations of the MTC, Miguel Hilario. The RED added: “In the VHF band, for the first time, 115 districts will have access to television favoring more than 364 thousand people. Likewise, for the first time, 67 districts will benefit from FM sound broadcasting service, which will favor more than 116 thousand people”.
1.714.213 1.791.979 1.878.891
Evolution of fixed internet connections by operating company June 2020 Connection March 2021 Connection
Wi-Net + Oficial Technologies
Fiberlux S.A.C.
Grupo Econocable
Wow Tel
11.706 14.669 15.711
Hugues de Perú S.R.L.
7.842
6.197 10.537 10.241
Grupo Entel
4.606 8.484 10.132
Grupo América Móvil
8.883 31.956 39.045
Telefónica del Perú
13.225 43.972 64.445
168.141 151.723 137.014
688.752 789.866 824.279
June 2021 Connection
The rest of Companies
Source: PUNKU - DPRC - OSIPTEL (Fecha de corte: 11/08/2021)
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Southern Cone
Argentina Television grows in share and investment, from 61% to 70% of the media mix in the first half of 2021. Cable TV gains 3 points of share in the SOI compared to the first semester of 2020. Open TV is the leader in SOI share in both periods. Cable TV occupies 23% and grows 3 points. 64% of the advertising is concentrated in the groups: Artear and Viacom, both with 32% of the share.
this is due to the first months of strict quarantine.
According to Adlatina, “of the cable groups, The Walt Disney Company and WarnerMedia have the highest percentage of investment. Television ignition grows 7% compared to the first half of 2020. Broadcast TV shows a 14% increase and Cable TV a 5% increase compared to the first half of 2020. In the second quarter of 2021 we start to see the recovery of the switch-on, showing similar values to the second quarter of 2019”.
Political content and journalistic investigations predominate among people with internet access. Another relevant topic is Movies and TV, with 32.2 % of reach, followed by news with 31.7 %. Thirty-one percent use audio streaming more than one hour per day: the most used platforms to listen to podcasts are Spotify (91 %) and YouTube (27 %).
This, then, is evidence that the first quarters of each year maintain low values of audience compared to the second half of each year, however the first quarter of 2020 is the one that shows the biggest drop,
AM radio grows 116 % compared to the first half of 2020 and occupies 44 % of the investment share. Radio ignition grows by 14 % and is driven by FM. For the first half of 2021, FM shows a growth of 25 % and AM, a drop of -3 % compared to the first half of 2020.
In the accumulated period of 2021, the investment is 274,917 million pesos, representing an increase of 29.7% compared to the same period of 2020. In May, Digital and Open TV concentrated 76.2% of SOI, with 48.2% and 28.1% respectively; in third place, radio, with 7.5%.
Argentina Restricted TV income MILLIONS OF DOLLARS Cablevisión (Clarín Group) - Telecom Argentina
132,347 83.662
DirecTV Supercanal (Grupo Uno)
25.002
Red Intercable Telecentro (Grupo Pierri)
34.108 20.935
Others 0 Source: The Competitive Intelligence Unit.
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74.460 33.626
67.250
100.875
134,500
Chile Free-to-air television in May 2021 presented a growth of 53.1 % versus the same month in 2020, with an SOI of 28.1 % versus 31.6 % in 2020. For the accumulated period January-May 2021, growth was 25.1 %, with an SOI of 27.8 % versus 28.8 % in 2020. Meanwhile, pay TV, in the same month, closed with a growth of 116.7 % versus May 2020, with an SOI of 7.0 % versus 5.6 %. The cumulative period of 2021 grew 60.8 % versus 2020, with an SOI of 7.1 % versus 5.7 % the previous year. In May 2021, the daily sector grew 52.1 % versus the same month in 2020, with a SOI of 4.8 % versus 5.5 % in 2020.
In the cumulative period January-April 2021, the variation was -21.4 % versus 2020, with an SOI of 4.2 % versus 7 % in 2020. While the magazine category closed with a variation of -67.3 % versus the same month in 2020, with an SOI of 0.05 % versus 0.3 % in 2020. In the accumulated period of 2021, the variation was -80.4 % versus 2020, with an SOI of 0.06 % versus 0.4 % of 2020. Radio obtained a growth of 69.8 % variation versus the same month in 2020, with an SOI of 7.5 % versus 7.6 % in 2020. In the accumulated January-May 2021, the variation was 13.8 % versus 2020, with an SOI of 7.2 % versus 8.2 % in 2020.
Chile Restricted TV income MILLIONS OF DOLLARS 59.550
VTR Movistar (Telefónica)
35.024
DirecTV (AT&T)
24.159
Claro (América Móvil) Grupo GTD
25.602 10.021
Others 0
27.439 15.285
30.571
45.856
61.142
Source: The Competitive Intelligence Unit.
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Uruguay In 2019, the audiovisual activity employed 9,879 people in the categories of film, series and program production, post-production, advertising agencies, cinemas and film distribution, radio and television. The average automation risk of these jobs is 49.7%, well below the overall average of 63.2%. According to the Centro de Estudios de la Realidad Económica y Social-CERES, “some jobs with lower risk are more exclusive to the activity, such as film and related directors and photographers, or radio, television and other media announcers and journalists”. Free-to-air television reaches a coverage of 90% of the population and absorbs half of the advertising investment. The three main business groups in turn capture 95% of this audience and of the advertising turnover of free-to-air television. They also invoice 46% of pay TV subscriptions, an activity in which
other national and foreign companies are involved. On the other hand, the UNESCO report “Media development in Uruguay: diagnosis, perspectives and challenges” argues that “Uruguay has been located from the beginning among the countries with the highest and fastest Internet penetration. Some public policies have had an impact on this, such as the Ceibal Plan, promoted by the government since 2007, which involves the provision of a computer to each student in elementary and middle school”. The report also points out that “the relatively cheap rates for home access of the state telephone company, which has a monopoly on wired Internet connections. Almost 65% of households have an Internet connection and more than half of Uruguayans connect daily, mainly to search for information, read news and access social networks”.
TV services for subscribers throughout the country 725.902
730.743
718.934
722.494
733.002
704.202
688.157
679.094 638.808
6-2016
12-2016
6-2017
Source: Communications Services Regulatory Unit - URSEC
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12-2017
6-2018
12-2018
6-2019
12-2019
6-2020
CHAPTER 5
RISING FREIGHT AND CARGO PRICES - WHAT’S THE REASON?
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Freight and cargo moved on different routes from Latin America (Percentage) 10.0% 5.0%
8.0% 2.3% -0.2%
0.0% -5.0%
2.2%
1.5% 0.2%
-6.0%
-10.0%
-20.0%
Variation exports
1.5% 1.0%
-2.5% -2.3%
-3.5%
-15.0%
7.0%
-11.8%
-6.0%
-9.9%
-9.80% -16.2%
Europe
Asia Freight Variation exports
North America Variation imports
-18.9% Middle East+India Inside Freight Variation imports
Latin America Comex
Source: Economic Commission for Latin America and the Caribbean (ECLAC) based on information from Drewry
The increase in product prices, the scarcity of raw materials and the high costs of container shipments are other concerns for industry integrators in terms of distribution and logistics. In addition, it is possible that the supply of some integrated systems, equipment, among others, may decrease. In relation to this, if there is an increase in demand in this scenario, the price increase would be much higher. Alessandro Nicita, economist at the UN trade agency (UNCTAD), explains that it is the strong recovery of exports in the world that is generating a real shock: “If trade were depressed, there would be no crisis”. According to Javier Diaz, president of Analdex, “this situation has generated a shortage of containers, defaults in itineraries and an accelerated increase in transportation costs. Thus, the average freight rates of 20-foot units from China to Latin America, for example, are now almost five times higher than the average of the last 12 years”. Before the pandemic, shipping a container from Asia to Latin America and vice versa cost an average of $2,000 USD and sometimes as much as $1,500 USD,
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and today it is hardly possible to get sea freight on that route for less than $8,000 USD. The Asia-Europe corridor, on the other hand, reaches rates in excess of $10,000 USD and up to $14,000 USD for a single voyage. This is in addition to the increase in freight rates from Asia to the Americas. According to data available from the Freight Baltic Index (FBX), freight rates have been increasing over the last year. Such is the case from the East Coast of North America to China/ East Asia (10% increase) while from the East Coast of North America to Northern Europe there is a decrease of 18%. Thus, the price volatility for freight rates is 2.3%. The prices for these areas remain at $10,519 USD, which is equivalent to an increase of 2 %. From another point, as shown by the SFCI index, which is the most used indicator to measure ocean freight rates and analyzes the costs of routes with China for 20-foot containers, this has gone from just over 700 points at this time in 2019, to more than 4,500 points at the end of August, i.e., a growth of almost 530%. This figure is higher on some routes.
(Annual) increase in prices relative to the Global Index container loading
Desde
03-Sep-2020
a
03-Sep-2021
$10.000 $7.500 $5.000 $2.500
01-Nov-20
01-Jan-21
01-Mar-21
01-May-21
01-Jul-21
01-Sep-21
Fuente: Freight Baltic Index (FBX).
Source: Freight Baltic Index (FBX). Note: The price increases (annual: September 2020 to September 2021) shown in the graph are related to the Global Container Freight Index (USD values).
High freight rates cast a shadow over economic recovery The United Nations Conference on Trade and Development (UNCTAD) warned that “global consumer prices will increase significantly by 2023 until supply chain disruptions, port constraints and port terminal deficiencies are addressed. Thus, the current increase in container freight rates, if sustained, could increase world import price levels by 11% and consumer price levels by 1.5% by 2023. “The current increase in freight rates will have a profound impact on trade and undermine socioeconomic recovery, especially in developing countries, until shipping operations return to normal,” said UNCTAD Secretary-General Rebeca Grynspan. “Getting back to normal would mean investing in new solutions, including infrastructure, freight tech-
nology and digitization, and trade facilitation measures,” she said. The impact of high freight rates will be greatest in Small Island Developing States (SIDS), which could see import prices rise by 24% and consumer prices by 7.5%. In the Least Developed Countries (LDCs), consumer price levels could increase by 2.2%. Supply chains will be affected by the rising costs of maritime trade. Low value-added goods produced in smaller economies, in particular, could suffer a serious erosion of their comparative advantages. A 10 percent increase in container freight rates, coupled with supply chain disruptions, is expected to lower industrial output in the United States and the euro area by more than 1 percent, while in China output is expected to decline by 0.2 percent.
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UNCTAD urges countries to consider a package of measures covering tangible and intangible infrastructure. Improving the quality of port infrastructure would reduce average global shipping costs by 4.1%, while costs would be reduced by 3.7% with trade facilitation measures and by 4.4% with improved liner shipping connectivity.
The what is forecast
ECLAC estimated that the value of regional exports of goods would grow by 25% during the current year, following a 10% drop in 2020, driven by a 17% growth in prices and 8% in quantities shipped out of the region. The UN agency stresses that the increase in exports of goods was mainly due to higher commodity prices, especially minerals, hydrocarbons and agroindustrial products, rather than an increase in the volume exported. It also indicates that regional exports of services continue to fail to recover from the drop they suffered due to the coronavirus pandemic. “In particular, regional dependence on tourism far exceeds the world average, so the uncertainty about the reopening of this sector negatively conditions the prospects of several economies, especially in the Caribbean,” ECLAC warns. “In sum, the recovery of regional trade in 2021 shows important weaknesses”. In relation to this last point, the agency calculates that the global average cost of container freight by sea has risen by more than 660 % from June 2019 to date.
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On the other hand, the value of regional imports of goods would register an increase of 32 % with an expansion of 20 % in volume and 12 % in prices. Looking ahead to 2022 forecasts, the agency projects growth in the value of regional exports and imports of 10 % and 9 %, respectively. The highest trade activity was recorded with China and at the regional level. The projected annual variation in regional exports to the Asian country is 35%, followed by 33% intra-regional, and a growth in shipments of 23% to the European Union and 19% to the United States.
CAPÍTULO 6
BROADCAST 2022 TECHNOLOGY TRENDS, GROWTH AND OPPORTUNITIES
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The implementation of new technologies has been immersed in various sectors and industries, which today is not indifferent in an industry where broadcast predominates. The incorporation of technology such as 5G and mobile communications have made the niche a migration towards IP connectivity, virtuality and has encouraged the adoption of other technological systems that enhance investment in the issue of equipment and, of course, end-user satisfaction. Latin America will have 81 million Video on Demand (SVOD) and OTT subscriptions by 2025; almost double the 42 million registered at the end of 2019. This growth comes despite the recession affecting most countries in the region, according to the Latin America TV and OTT video forecasts report published by Digital TV Research. In fact, the report reports that there were 1.08 mi-
llion SVOD households at the end of 2017 and total growth is forecast to 2.00 million by 2023, which would lead to OTT TV revenues in 19 countries in Latin America reaching around US $6.43 billion in 2023. However, such implementation in Latin America has been subject to the Pay TV and Satellite TV market. In this regard, it should be noted that trends have shown that the demand for satellite distribution has discouraged the use of broadband infrastructure. The growth of OTT is increasing Pay TV market share. According to Intelsat’s report, “access to digital TV is expected to grow substantially in the next 10 years thanks to the development of DTT, cable digitization and low-cost packages. By 2028, 67.8% of TV households will be able to access DTT signals. For operators, it is more cost-effective and reliable to deliver video via satellite than 4G”.
Podcasts, the format that continues to grow and consolidate user confidence This format has been consolidating its popularity among the public due to the ease of access to content and the wide variety of programming options. It also offers the possibility of listening to streaming audios or those that have been previously broadcasted.
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In this sense, FORTA “expects this trend to continue to grow and the podcast to become a daily listening tool for a large part of the population, particularly for young people”.
Podcasting Annual Growth 1,000M people listen to podcasts around the world.
70% of the growth will be led by emerging markets such as Asia Pacific, Latin America and China.
3.300M USD
2025
By 2020, the global podcasting market will exceed $1.1bn thanks to revenue from advertising and subscriptions.
2024 2023 2022 2021 2020 +30%
+30%
+30%
+30%
+30%
Crecimiento anual del podcasting según Deloitte
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Digitization of platforms and incorporation of new technologies According to the same Federation, “to adapt to the new habits of the audience and to be able to access the radio via mobile, computer or tablet, it is necessary to ensure that a wider audience can access a wider variety of content in a way that allows interaction between users”. Noé Garza, from Neutral Networks,also stated: “in 2022 the trend of traffic growth in the different fixed and mobile networks will continue, as well as the extension of coverage to areas with connectivity deficits. The penetration of technologies such as 5G, Wi- Fi, cloud services and the approach of processing and content through Edge Data Centers will continue to grow at an accelerated pace”.
The trends of remote and distributed production play a key role and prevail as a trend for 2022, this, then, exposes that today, viewers have a vast amount of content at their fingertips. To cope with these hundreds of stimuli, broadcasters must guarantee and produce more content at the right time, while maintaining high production values. As evidenced by Sony and Nevion in their publication “The future of live production: remote and distributed production”, IP technology is configured as the factor that will unify and optimize the processes of capture, storage and processing of multimedia content, and control of all these elements to produce live events.
The boom of streaming platforms in Latin America
Brazil
19.88
Mexico Argentina Colombia Peru Others
14,91 4,87
82% 87% 78%
3,90
88%
1,80
98% 8,70
93% GROWTH BY 2025
Source: Digital TV Research-Statista
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IPV6 CONNECTIVITY IN LATIN AMERICA AND THE CARIBBEAN PERCENTAGE OF USERS ACCESSING GOOGLE THROUGH IPV6 ADDRESSES.
38,7%
38,7% 13,4%
30,1% - 39,0% 20,1% - 30,0% 10,1% - 20,0% 0,1% - 10,0% 0,0%
Brazil
Colombia
22,6% Peru
1,7% Chile
12,0%
Argentina
Data extracted on April 29, 2021. Source: Google LATIN AMERICA BROADCAST MARKET REPORT 2022
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“Thanks to the latest technological advances, the capture sites, the production control areas and the processing of multimedia content do not even need to be close to each other. Remote and distributed production, and its different production models (DPP, remote processing, private cloud...), will be embedded for years. As Sony and Nevion argued, “new developments in remote and distributed production do not require broadcasters to choose a particular model exclusively for live productions. In fact, they can choose several models for the same production. This implies that coverage of a sporting event in a stadium might require centralized remote production, with live signals sent to central facilities over a WAN, combined with cloud production for recording/playback streams”. Faced with this, there is a need to implement technologies that strengthen processes and allow users to learn about those technological and operational elements that allow them to manage the IP envi-
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ronment more efficiently. In addition, to understand that they will allow bridging the physical distances of each of the operating units, to transmit content with versatility, to achieve a convergent management layer in production, among other benefits. Another trend discussed by the integrators consulted in this report is 5G band transmission. It should be noted that this technology, unlike 4G, will require smaller cells. According to the experts, “the previous technology required cell towers of 10-30 meters, with signal enhancement devices to reach 70-80 kilometers. Millimeter waves will allow 5G to have smaller antennas, and they do not need to be high up”. In relation to the above, it can be stated that millimeter waves also provide an important benefit by having a greater bandwidth available. This means that many more devices will be able to connect to each cell. As a positive consequence, the congestion that occurred with 3G and 4G will be reduced.
5g band transmission
LATIN AMERICA, REGIONAL OVERVIEW ON THE USE OF MMWAVE BANDS Technical and regulatory challenges Lower propagation than bands below 6 GHz.
It will require networks with denser infrastructure to be harnessed.
Signals can be attenuated by physical barriers or some weather conditions.
PUERTO RICO/VIRGIN ISLANDS (US) Bands: 26 GHz, 28 GHz, 37 GHz, 39 GHz and 47 GHz Status: Assigned / in use (varies by band).
COSTA RICA Bands: 26GHz, 28GHz Status: 26 GHz has already been assigned. 28 GHz was included in previous consultations.
MEXICO Bands: 26GHz, 28GHz, 42GHz, 48GHz Status: Mentioned in the spectrum report suitable for 5G, 28 GHz is under study.
BRAZIL Bands: 26 GHz and 39 GHz Status: 226 GHz will be auctioned in 2021, interest in 39 GHz will be consulted.
PANAMA Bands: 26 GHz, 28 GHz, 40 GHz and 66-71 GHz Status: In reserve (suspension of the assignment of new permits). COLOMBIA Bands: 26 GHz, 28 GHz, 37-43.5 GHz, 47.248.2 GHz, 45.5-47 GHz and 70 GHz Status: Mentioned in 5G-capable spectrum planning documents.
PERU Bands: 26 GHz and 28 GHz. Status: Capacity under study indicated by the authorities. 26 GHz usage accessed in 2020.
CHILE Bands: 26GHz, 28GHz Status: 26 GHz has already been assigned. 28 GHz was included in previous consultations.
URUGUAY Bands: 28GHz Status: In use.
Source: Millimeter wave bands (MMWAVE) for 5G in Latin America and the Caribbean, Understanding Mmilimeter Wave Spectrum for 5G Networks and 5G Americas. It will require networks with denser
ARGENTINA Bands: 26 GHz, 25-29 GHz, 50 GHz and 37-43.5 GHz Status: In reserve (suspension of the assignment of new permits).
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OTT services On the other hand, OTT services will be a trend for 2022, as they have grown thanks to the preference for the transmission of messages, video, music, streaming and TV. In this sense, it could be said that over-the-top services have grown steadily since their emergence and in Latin America this behavior shows no signs of slowing down. The COVID-19 pandemic has been a driving factor in this growth of OTT services subscriptions and contracts. Regarding the trend in OTT technology, it can be said that linear transmission options are more of an opportunity than a threat. Notably, many top-tier programmers are including OTT services with existing Pay TV subscriptions to increase viewer retention.
“As OTT and video streaming expand at the pace of the Latin American mobile market, there are more opportunities to bundle newer services with Pay TV and deliver them more reliably at a lower cost over satellite. The upward trend is strong: by 2025, OTT will represent 9.7% of the Pay TV market,” stated the Intelsat report. In 2020, at least 70% of the customers with a subscription video-on-demand service have contracted another transmission platform. The competition in the region is marked by corporations such as Netflix, Amazon Prime Video, Apple TV+, Disney+. Others making their entrance are Hulu, HBO Max and ViacomCBS.
OTT revenues in Latin America will double by 2027 Millions of dollars
16,000 14,000 12,000 10,000 8,000 6,000 4,000 2000 0 2021
2022
2027
6,044
6,083
9,672
DTO
295
326
468
RENTAL
390
432
611
1,537
1,802
3,581
SVOD
AVOD Source: Panorama Audiovisual.
74
Augmented reality Likewise, augmented reality has made scale in the Broadcast world becoming a marketing and communication tool for companies, which have found in this format an interactive way, where their products and/ or services are made known through different digital platforms. According to ABI Research, the total market value of augmented reality is expected to grow exponentially to over USD 140,000 million in 2025. Similarly, the specialized portal Statista exposed that,
“the global AR and VR market will have a growth in the coming years of more than 788%, this taking into account that by 2020 it closed the year with a total collected of USD 37,700, and it is estimated that by 2024 it could reach around USD 297,000”. As for the educational market, the uses of the XR have been embryonic between 2015 and 2020, and globally digital reality represented only USD 68 billion in 2019 and headset (other than software, content and services) probably less than USD 100 million, the situation could change after the pandemic.
Augmented Reality Growth Number of users in billions 2
1,75
1,5
1,25
1
0,75
0,5
0,25
0 Source: Statista
LATIN AMERICA BROADCAST MARKET REPORT 2022
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CHAPTER 7 76
LATIN AMERICAN ECONOMIES TO RECOVER GRADUALLY BY 2022
In 2022, following the contraction of world GDP in 2020 as a result of a generalized fall in economic activity in both developed and emerging economies, the effects of the war between Russia and Ukraine, the rise in prices and the impact on trade chains in Europe, will also be reflected in some Latin American countries. Likewise, the crisis has triggered a contraction in international trade and, in turn, has led to sharp fluctuations in (high) prices as a result of volatility in the financial markets, which has translated into lower profitability and greater risk aversion. In addition, the measures taken in the vast majority of countries around the world to contain the pandemic have had a significant impact on tourism and commercial aviation activities and restaurant and hotel services. However, such measures implemented by some of the governments of Latin American countries to deal with the effects of the pandemic have helped to mitigate the economic impact on the social and business fabric of the region. The case of the fiscal monetary packages, for amounts close to USD 12 trillion in fiscal actions and USD 7.5 trillion in monetary action announcements, have cushioned the fall in economic activity, but this has also led to high
levels of liquidity, which has had repercussions in the increase of indebtedness at a global level. These disparities and asymmetries affect not only the dynamics of short-term growth, but also the capacity to sustain medium-term growth. According to International Monetary Fund (IMF) estimates, “the group of advanced economies is the only one that in 2022 would resume the growth trajectory registered before the pandemic, and even surpass it. The other groups of countries will remain, in the medium term (until 2025), on a much lower growth trajectory than projected before the pandemic”. It is worth noting that during 2021, commodity prices continued the upward trend that began in May 2020, and are estimated to have grown by 42% over the 2020 average level. In 2022, prices are expected to remain high, although a slight decline (-3.2 %) compared to 2021 would be observed. For the global economy, 2022 starts in weaker conditions as a result of higher energy prices and supply disruptions, inflation is higher and more widespread than expected, especially in the United States and in many emerging markets and developing economies. In addition, the ongoing contraction in China’s real estate sector and the unexpectedly slow recovery in private consumption have limited growth prospects.
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By 2022 Latin American economies gradually recover Latin America and the Caribbean (33 countries); GDP growth rate projection 2022 (Percentages) 46.0
Guyanese St. Lucia
15,8 11,0
Caribbean Bahamas
8,5 8,5 7,3
Barbados Panama
6,2 6,1 5,7 5,7 5,5
Belize The Caribbean (excl. Guyana) Trinidad and Tobago Jamaica Dominican Rep.
4,6 4,5 4,5 4,3 4,2 4,0 3,9 3,8 3,8 3,7 3,7 3,7 3,5 3,3 3,2 3,1 3,0 3,0 3,0 2,9 2,6 2,2 2,1 2,0 1,9 1,5 1,4 1,4
Dominica Centroamérica Honduras Guatemala Antigua y Barbuda Grenade Saint Kitts and Nevis El Salvador Paraguay St. Vincent and the Grenadines Costa Rica Colombia Cuba Central America and Mexico Bolivia (Plur. State of ) Uruguay Nicaragua Venezuela (Bol. Rep. of ) Peru Mexico Ecuador Argentina Latin America and the Caribbean Latin America Chile Suriname South America Haiti
0,5
Brazil
0
5
10
15
20
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
78
ESTUDIO DE MERCADO BROADCAST LATINOAMÉRICA 2022
78
Volatility in the financial markets International financial markets performed favorably in 2021, despite some brief episodes of increased volatilities linked not only to the evolution of the pandemic, but also to uncertainty about the inflation outlook and the possibility of early withdrawals of monetary stimulus. This has increased the likelihood that central banks in developed economies will reduce their mone-
tary stimulus, which may have adverse effects on emerging markets. The lower exchange rate corrections recorded in 2021 were also accompanied by lower volatility in the exchange rate, relative to the average absolute value of inter-daily exchange rate variations during the first three quarters of the year.
Volatility index in financial markets (January 2018- October 2021) 70 60 50 40 30 20 10
2018
2019
2020
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
Oct
Jul
Apr
Jan
0
VXEEM Index VIX index EURO STOXX V2X Index
2021
Source: Economic Commission for Latin America and the Caribbean (ECLAC), based on Bloomberg. Note: The VIX index, compiled by the Chicago Board of Options (CBOE), measures the expected volatility for the next 30 days based on the prices of the call and put options of the S&P 500 index. CBOE also produces the VXEEM index, which measures volatility in emerging markets, and Deutsche Börse, together with Goldman Sachsa, produces the V”X index, which measures volatility in the euro zone.
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Impact on trade and value chains In line with global GDP growth dynamics, the volume of world trade in goods would also grow less in 2022 (by 4.7 %, compared to a figure of almost 11 % in 2021), according to estimates from the outlook for Latin American and Caribbean countries, the region’s exports grew by 25 % in value in 2021, with a 17 % increase in export prices and an 8 % increase in the volume exported. Meanwhile, imports would have grown by 32% in value, representing the largest increase since 2010, when they expanded by the same amount. After the collapse of 2020, it is estimated that import volumes grew by 20%, in line with the expansion of domestic activity in the region, both consumption and investment, and that import prices rose by 12%. Although the favorable evolution of commodity prices in 2021 translated into an estimated increase in the terms of trade of around 5% in the region, there are differences at the subregional level. Notably, the terms of trade fell by 5% in the Caribbean (excluding Guyana, Jamaica and Trinidad and Tobago) and by 1% in Central America, partly as a result of the large weight of energy in the import basket of these countries. According to the Economic Commission for Latin America and the Caribbean, “the group of countries whose terms of trade increased the most is precisely that of hydrocarbon exporters (15%). Remittances continue on an upward trajectory and, after having increased by 8% in 2020, they would have increased by almost 30% in 2021”. According to ECLAC, “they continue to be a very important source of external resources for the countries of the region, particularly for Central America, Mexico and some Caribbean countries. The services balance deficit worsened in 2021, influenced mainly
80
by a deterioration in the transport and other services account, whose imports increased in line with the rise in goods imports”. The World Trade Organization (WTO) forecasts world merchandise trade volume growth of 10.8% in 2021, up from 8.0% forecast in March, followed by a 4.7% increase in 2022. Supply-side challenges, such as semiconductor shortages and port delays, affect in certain areas, but are unlikely to have a material impact on global aggregates. The greatest downside risks come from the pandemic itself. Against this, Director-General Ngozi Okonjo-Iweala argued, “Trade has been an essential tool in combating the pandemic, and this strong growth underscores the importance of trade in underpinning global economic recovery.” The high annual growth rate of merchandise trade volume recorded in 2021 primarily reflects the sudden drop in the previous year, which bottomed out in the second quarter of 2020. Starting from a low point, year-on-year growth in the second quarter of 2021 was 22.0 %, but the figure is forecast to fall to 10.9 % in the third quarter and 6.6 % in the fourth quarter, due in part to the rapid recovery of trade in the last two quarters of 2020. Only 0.8 % quarter-on-quarter growth averaging 0.8 % each quarter in the second half of this year, equivalent to an annualized rate of 3.1 %, is needed to meet the forecast for 2021. Trade volume growth is expected to be accompanied by market-weighted GDP growth of 5.3% in 2021 and 4.1% in 2022 (instead of the 5.1% and 3.8% previously forecast).
North America CIS b Asia
Europcar Middle East
South america parts Africa
North America CIS b Asia
2022T4
2022T3
2022T2
2022T1
2021T4
2021T3
2021T2
2021T1
2020T4
2020T3
2020T2
2020T1
2019T4
2019T1
2022T4
2022T3
2022T2
2022T1
2021T4
70 2021T3
75
70 2021T2
80
75 2021T1
85
80
2020T4
90
85
2020T3
95
90
2020T2
100
95
2020T1
195
100
2019T4
195
2019T3
110
2019T2
115
110
2019T1
115
2019T3
Imports 120
2019T2
Exports 120
Europcar Middle East
South america parts Africa
Note: A. Comprises Central and South America and the Caribbean. B. Comprises the Commonwealth of Independent States (CIS), including certain former member states and associate member states. Source: WTO and UNCTAD.
World merchandise trade volume, 2015Q1- 2022Q4 Index, 2015=100 125 120 115 110 105 100 95
Merchandise trade volume
Trend 2011-2019
Current forecast
Previous forecast
2022Q4
2022Q3
2022Q2
2022Q1
2021Q4
2021Q3
2021Q2
2021Q1
2020Q4
2020Q3
2020Q2
2020Q1
2019Q4
2019Q3
2019Q2
2019Q1
2018Q4
2018Q3
2018Q2
2018Q1
2017Q4
2017Q3
2017Q2
2017Q1
2016Q4
2016Q3
2016Q2
2016Q1
2015Q4
2015Q3
2015Q2
2015Q1
90
Source: WTO and UNCTAD for trade volume data; WTO for forecasts.
LATIN AMERICA BROADCAST MARKET REPORT 2022
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Balance of financial flows to the region The income balance deficit, on the other hand, increased in 2021 mainly due to higher profit remittance by foreign investment companies, in a context of rising commodity prices. As a result of the aforementioned trends, after exhibiting a small surplus in 2020 (0.2 % of GDP), the current account of the balance of payments turned into a deficit again in 2021 and stood at 0.6 % of GDP.
outlook revisions for almost all countries in the region, as well as a slight increase in sovereign risk, which even so still remains well below the figures recorded during much of 2018 and 2019.
Indeed, debt issuance in the international markets by the region continued to rise and, in the first ten months of 2021, increased by 12.3 % compared to the same period in 2020, although this time with greater prominence of private debt and lower growth in sovereign issuance. Non-bank private sector issuance grew by 77 %, while sovereign issuance increased by 14 %, after experiencing strong dynamism in 2020.
On the other hand, although exports grew significantly, the net external sector (exports minus imports) presents a negative contribution to output growth, due to the sharp increase in imports.”
The recovery in financial flows has, however, been accompanied by a deterioration in credit ratings in several countries in the region, with 12 credit rating downgrade actions in 2021, in addition to downward
Growth dynamics in 2021 were led by domestic demand. Private consumption was a key driver and contributed around half of second-quarter growth.
According to ECLAC, “from a sectoral perspective, the expansion of economic activity was led by the recovery of the sectors of economic activity most affected by the pandemic (construction, commerce, manufacturing, and transport and communications), all of which showed a generalized increase. The rest of the sectors of economic activity also recorded recoveries during the second quarter”.
Cumulative 12-month net portfolio capital flows to emerging markets and financial volatility in emerging markets, March 2011 to September 2021 (In millions of dollars)
2011
2012
2013
2014
2015
2016
2017
2018
Sep
Sep
2020
Mar
Sep
2019
Mar
Mar
Sep
Mar
0
Sep
0
Mar
-100
Sep
10
Sep
-50
Mar
20
Sep
0
Mar
30
Mar
50
Sep
40
Mar
100
Sep
50
Mar
150
Sep
600
Mar
200
Flujos de capital de cartera
2021
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of information from the International Monetary Fund
82
GDP evolution in Latin America In this context, the projected growth of the world economy for 2021 was 5.8 % and, for 2022, a slowdown to 4.9 % is expected. In the cases of the United States and China, substantially lower growth rates are expected in 2022 than those observed in 2021.
by COVID outbreaks, disruptions to industrial production caused by power outages, falling real estate investment and the unanticipated acceleration of public investment retrenchment contributed to a cooling of the economy in the second half of the year.
According to the Economic Commission for Latin America and the Caribbean, “the group of developed economies would have grown by 5.2% in 2021. The United States is estimated to have grown by 6.0% and the euro zone by 5.2%, while Japan is estimated to have grown by 2.4% and the United Kingdom by around 6.8%. In the group of emerging and developing economies estimated to have grown by 6.4 % this year, China, with a growth of 8.0 %, and India, with 9.5 % stand out”.
In sectoral terms, ECLAC states that although the current economic situation has had a negative impact on all sectors, it has done so with varying intensity depending on the sector. The most affected were manufacturing, construction, commerce and transportation, and the least affected were agriculture, essential services, financial services and mining. The analysis presented by ECLAC at the country level indicates that Chile and Brazil are the most indebted economies in the region (263% and 229% of GDP for the third quarter of 2020, respectively).
From another point, and in a less optimistic scenario, the negative developments since the release of the October 2021 WEO report mean that the world economy is starting the year in weaker conditions than expected. Supply disruptions continued during the fourth quarter, sowing obstacles for international manufacturing, particularly in the United States and Europe. A resurgence of COVID cases (particularly in Europe) also hinders a broader recovery. In China, disruptions caused
This is why liquidity expansion policies have succeeded in lowering the cost of financing for the non-financial corporate sector. The interest rate spread for the corporate sector has narrowed substantially since the beginning of the pandemic for high yield and investment grade bonds.
Selected regions and countries GDP growth rate for 2020 and projections for 2021 and 2022 (In percentages) 13 9,5
8
5,8
4,9
5,2
6,8
6,0 4,2
5,0
3,9
3
2,4
5,2
6,4 4,6
7,2 5,1
8,0 6,4
3,0
7,9 5,9
5,7
3,8
2,3
-2 -3,1 -4,5
-3,4
3,7 3,8
2020 2021
-0,8
-7
4,1 4,1
-2,0
-2,1
-2,8
-1,7
-4,7 -6,3
2022
-7,3
-9,7
-12 World
Advanced economies
USA
Japan
United Kingdom
Euro zone
Emerging and Emerging and developing developing economies countries in Asia
China
India
Emerging and Middle East developing and North countries in Africa Europe
Sub-saharan Africa
Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of Organization for Economic Cooperation and Development (OECD), OECD Economic Outlook, Interim Report, Keeping the Recovery on Track, September 2021; International Monetary Fund (IMF), World Economic Outlook (WEO), October 2021; European Central Bank (ECB), “Eurosystem staff macroeconomic projections”, September 2021 and Capital Economics. a Figures for India are for the fiscal year, beginning in April and ending in March of the following year.
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Future perspectives From another perspective, the growth projections for the economies of Latin America and the Caribbean in 2021 are positive (subject to changes due to the current situation). An average regional growth rate of 3.7% is estimated. In fact, 3.1 points of the projected growth rate for the region in 2021 correspond to statistical carryover, which means that 3.7% would make it possible to recover 44% of the GDP loss recorded in 2020.
level would be reached in 2024.
In the Economic Survey of Latin America and the Caribbean, 2020, ECLAC projected a scenario in which the region picks up in 2021 and then returns to its average growth trajectory of the last decade of 1.8%. In this scenario, recovery to the 2019 GDP
The forecast is based on poor health indicators falling to low levels in most countries by the end of 2022, assuming immunization rates will improve internationally and more effective therapies will emerge.
From another angle, the International Monetary Fund expects global growth to moderate from 5.9% in 2021 to 4.4% in 2022; that is, half a percentage point lower in 2022 than forecast in the October edition of the WEO report, largely due to the cut in the projections of the two largest economies.
Outlook updates from the World Economy, January 2022
Growth projections
World Economy
Advanced Economies
6,5
5,9 4,4
2021
84
Emerging market and developing economies
2022
5,0 3,8
2023
3,9
2021
2022
4,8
4,7
2022
2023
2,6
2023
2021
Estimates 2020-2021 and projections 2022 - 2023 Estimates
Projections
Difference with the October 2021 WEO Report Update 1/ 2022 2023 -0.5 0.2 -0.6 0.4 -1.2 0.4 -0.4 0.5 -0.8 0.9 -0.4 0.0 -0.4 0.6 -0.6 1.2 0.1 0.4 -0.3 0.4 -0.8 0.2 -0.1 0.0
2020 -3.1 -4.5 3.4 -6.4 -4.6 -8.0 -8.9 -10.8 -4.5 -9.4 -5.2 -1.9
2021 5.9 5.0 5.6 5.2 2.7 6.7 6.2 4.9 1.6 7.2 4.7 4.7
2022 4.4 3.9 4.0 3.9 3.8 3.5 3.8 5.8 3.3 4.7 4.1 3.6
2023 3.8 2.6 2.6 2.5 2.5 1.8 2.2 3.8 1.8 2.3 2.8 2.9
-2.0
6.5
4.8
4.7
-0.3
-0.9 -7.3 -3.4
7.2 9.0 3.1
5.9 9.0 5.6
5.8 7.1 6.0
-1.8
6.5
3.5
-2.7 -6.9 -3.9
4.5 6.8 4.7
Mexico
-8.2
Middle East and Central Asia Saudi Arabia Sub-saharan Africa Nigeria South Africa informative items World growth according to market exchange rates Low-income developing countries
-2.8 -4.1 -1.7 -1.8 -6.4
Estimates
Projections
2021 4.2 4.4 5.3 4.8 1.9 5.0 6.2 4.9 0.4 6.3 3.5 3.8
2022 3.9 3.5 3.5 3.2 4.2 1.9 2.5 5.0 3.6 3.8 3.9 3.4
2023 3.4 1.8 2.0 1.8 1.6 1.7 1.7 2.5 1.1 0.5 1.9 2.5
0.1
4.0
4.3
4.8
-0.4 0.5 -0.2
0.1 0.5 0.0
3.7 4.3 3.5
5.4 5.8 5.6
5.7 7.5 5.9
2.9
-0.1
0.0
5.8
2.2
3.0
2.8 2.4 0.3
2.1 2.6 1.6
-0.1 -0.6 -1.2
0.1 0.1 -0.4
4.2 3.7 0.6
2.1 1.8 1.5
1.8 2.6 1.4
5.3
2.8
2.7
-1.2
0.5
2.9
3.4
1.9
4.2 2.9 4.0 3.0 4.6
4.3 4.8 3.7 2.7 1.9
3.6 2.8 4.0 2.7 1.4
0.2 0.0 -0.1 0.0 -0.3
-0.2 0.0 -0.1 0.1 0.0
... 5.2 ... 2.4 1.3
... 5.3 ... 2.1 2.6
... 2.8 ... 2.3 0.9
-3.5
5.6
4.2
3.4
-0.5
0.3
4.2
3.9
2.8
0.1
3.1
5.3
5.5
0.0
0.0
...
...
...
Volume of world trade (goods and services)
-8.2
9.3
6.0
4.9
-0.7
0.4
...
...
...
Advanced Economies
-9.0
8.3
6.2
4.6
-0.7
0.6
...
...
...
Emerging market and developing economies
-6.7
11.1
5.7
5.4
-0.7
0.0
...
...
...
-32.7
67.3
11.9
-7.8
13.7
-2.8
79.2
-4.7
-6.8
Non-fuels (average based on global commodity import weights
6.7
26.7
3.1
-1.9
4.0
-0.4
17.2
1.5
-1.6
Consumer prices Advanced Economies
0.7
3.1
3.9
2.1
1.6
0.2
4.8
2.8
2.0
World product Advanced Economies USA Euro zone Germany France Italy Spain Japan United Kingdom Canada Other advanced economies 3/ Asian emerging market and developing economies China India 4/ ASEAN-5 5/ Emerging and developing economies of Europe Rusiia Latin America and the Caribbean Brazil
Commodity prices (US dollars) Petroleum 7/
Note: Real effective exchange rates are assumed to remain constant at current levels between December 10, 2021 and January 7, 2022. Economies are listed by size. Aggregate quarterly data is seasonally adjusted. WEO = World Economic Outlook.1/ Difference based on rounded figures in both forecasts in this update and the October 2021 World Economic Outlook. Countries whose forecasts have been revised as of the October 2021 WEO correspond to about 90% of annual global production weighted by purchasing power parity.2/ For global production, quarterly estimates and projections correspond to around 90% of annual world production weighted by purchasing parity. For emerging market and developing economies, the quarterly estimates and projections correspond to about 80% of the group’s annual output weighted by purchasing power parity.3/ Excludes the Group of Seven (Canada, France, Germany, Italy, Japan, UK, US and US) and euro area countries.4/ For India, data and forecasts are based on fiscal year, with fiscal year 2021/22 as of April 2021. In the January 2022 WEO Update, India’s growth is projected at 8.7% in 2022 and 6.6% in 2023 on a calendar year intensive basis. The 2021 column of the table includes the impact of the omicron variant. 5/ Philippines, Indonesia, Malaysia, Thailand, Vietnam.6/ Simple average of growth rates of export and import volumes (goods and services).7/ Simple average of U.K. crude oil prices. Brent, Dubai Fateh and West Texas Intermediate. The average price of oil was USD 69.07 in 2021; the assumed price based on futures markets (as of January 10, 2022) is USD 77.31 in 2022 and USD 71.29 in 2023.8/ The inflation rate for the euro zone is 3.0% in 2022 and 1.7% in 2023, for Japan it is 0.7% in 2022 and 2023, and for the United States it is 5.9% in 2022 and 2.7% in 2023, respectively.9/ Excludes Venezuela.
LATIN AMERICA BROADCAST MARKET REPORT 2022
85
Growth rates COUNTRY
DECEMBER 2020
2021 PROJECTIONS %
2022 PROJECTIONS %
INCREASE DIFFERENCE (2020-2021)
INCREASE DIFFERENCE (2021-2022)
Paraguay
-0.6
4
4
-85
100
Panama
-17.9
2.6
7.8
788.4
66.66
Brazil
-1.2
3.7
6.5
132.4
43.07
Costa Rica
-4.5
2.9
4
-55.17
27.5
-9
4.5
5.2
300
13.46
-5.9
2.7
3.1
318.51
12.9
3.6
3.1
3.4
-16.12
8.82
-6.7
4.8
4.5
239.583
-6.66
-7
5
4.4
240
-13.63
-6.2
4.4
3.5
-40.9
-25.71
Colombia
6.1
5.1
3
-19.6
-70
Mexico
3.1
5
2.5
38
-100
Chili
3.2
6.2
3
48.38
-106.6
Peru
0.51
8.5
3.9
94
-117.9
Argentina
-9.9
5.8
2.5
270.68
-132
Ecuador
-7.8
8.8
1.3
11.36
-576.9
Honduras Uruguay Guatemala Dominican Republic The Savior Bolivia
Source: Made by Latin Press
86
Inflation expectations 2021-2022 ECLAC estimated in 2020 that year-on-year (December-December) average inflation in CARD countries stood at 2.3%, 0.4 percentage points below that recorded in 2019 (2.7%). This slowdown was the result of a significant contraction in domestic demand, due to the temporary closure of economic activities. The August 2020 expectations surveys conducted by the region’s Central Banks indicate that the simple average of growth expectations for 2020 decreased 0.1 percentage points from -5.9 % to -6.0 % and the simple average of inflation expectations increased 0.1 percentage points from 3.1 % to 3.2 % with respect to the July surveys. Changes in both inflation and growth expectations are heterogeneous among the countries analyzed. In the case of expectations for 2021, the August 2020 surveys indicate that the simple average of growth expectations increased 0.1 percentage points from 3.8 % to 3.9 % and the simple average of inflation decreased 0.1 percentage points from 3.8 % to 3.7 % with respect to the July surveys. The countries where growth expectations for 2021 increased were Brazil, Mexico, Paraguay and Peru. In the case of inflation, Brazil, Paraguay and Uruguay recorded a drop in inflation expectations. High inflation is expected to continue higher than
anticipated in the October edition and supply chain disruptions and high energy prices are expected to persist in 2022. Inflation would remain elevated in the near term, averaging 3.9% in advanced economies and 5.9% in emerging markets in the 2022. Futures markets indicate that oil prices will rise by about 12% and natural gas prices by about 58% in 2022 (both increases being considerably lower than those seen in 2021), before falling back in 2023 as supply-demand imbalances are further corrected. Similarly, food prices are projected to advance at a more moderate pace of around 4% in 2022 and reverse in 2023. In many countries, nominal wage growth remains subdued, even though employment and participation have almost recovered to pre-pandemic levels). In the United States, however, the situation is different: the dramatic fall in unemployment is accompanied by a vigorous rise in nominal wages. This suggests a degree of saturation of U.S. labor markets not seen elsewhere. Consequently, in December 2021, the Federal Reserve announced that it would accelerate the gradual tapering of asset purchases and hinted that the federal funds rate would likely rise to 0.75-1.00% by the end of 2022; that is, about 50 basis points higher than previously suggested.
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MAP OF MEXICO AND CENTRAL AMERICA WITH TRADE BALANCE SHEET DATA % EXPORT GROWTH IN 2020 - 2021
2,24% -9,04%
-12,05%
-8,55%
Nicaragua
-22,58%
El Salvador
-4,49%
-9,45%
TRADE BALANCE 2020* Mexico 24.422
(surplus)
Costa Rica 2.768 (déficit)
In thousands of dollars. * ECLAC estimate * Note: latest available data 2020 - 2021.
88
Guatemala 6.637 (déficit)
Fuente: Cepal
Honduras 2.138 (déficit)
Nicaragua 1.521 (déficit)
Panama 5.002 (déficit)
El Salvador 5.563 (déficit)
Mexico, Central America and the Caribbean
Mexico The Organization for Economic Co-operation and Development (OECD) lowered its growth forecast for the Mexican economy from 3.3% to 2.3% for 2022. In its “OECD Economic Survey of Mexico”, the international organization also estimated that the gross domestic product will grow by only 5.3 % in 2021, after a previous estimate of 5.9 %. On the other hand, the OECD anticipated a 2 % growth in private consumption in Mexico for this year, in addition to a 6.5 % increase in exports and 6 % in imports. At the same time, the organization estimated that the unemployment rate will stand at 4 %, which in comparison would not make much difference with the 4.1 % of 2021. During January 2022, the National Institute of Statistics and Geography (Inegi) informed that the National Consumer Price Index (NCPI) presented a variation of 0.59 % with respect to the previous month. In this way, annual general inflation in the first month of the year reached 7.07 %, which represents a slight decrease compared to December 2021, when it reached 7.36 %, this was reported on Wednesday.
BROADCAST EQUIPMENT IMPORTS TO MEXICO
The Bank of Mexico (Banxico) warned that by 2022, the Mexican economy will continue to face an uncertain environment, so it recommended that the country has an environment conducive to investment and boost economic growth after the health crisis.
94,70% CHINA 4,60% KOREA, REPUBLIC OF
3,19% THAILAND 2,11% MEXICO
As of december 31, 2021
Source: Descartes Datamyne – Inegi.
LATIN AMERICA BROADCAST MARKET REPORT 2022
89
Costa Rica The Costa Rican economy has continued to grow at a faster-than-expected pace. Since the second quarter of 2021, economic activity surpassed the levels observed prior to the pandemic, and the strong rebound continued in the second half of the year. As a result, the Central Bank of Costa Rica (BCCR) revised upwards again the estimated growth for 2021, to 7.6%, from 5.4% in the projection presented last October. The Central Bank projects a continued expansion, with a Gross Domestic Product (GDP) variation of 3.9% in 2022 and 4.0% in 2023. These rates reflect a gradual normalization of economic growth, but remain above the long-term trend. The unemployment rate moved visibly downward throughout 2021 to stand at 14.4 % in the moving quarter ending in November, but that rate is still 2.2 percentage points (p.p.) higher than observed before the pandemic. Like economic activity, the fiscal accounts show much more favorable results, not only compared to 2020, but also compared to the forecast. As of December 2021, the Central Government accumulated a primary deficit (excluding interest payments) equivalent to 0.3 % of GDP (0.9 % projected in October), considerably lower than that recorded in the same period of the previous year (3.4 %), while the financial deficit was 5.0 % of GDP (5.8 % projected in October and 8.0 % recorded a year earlier). These results helped to contain indebtedness, but as a consequence of the still high financial deficit, the Central Government debt to GDP increased in 2021 by 1.1 p.p. with respect to December 2020, to close at 68.3 %.
BROADCAST EQUIPMENT IMPORTS TO COSTA RICA
51,31% UNITED STATES
7,10%
MEXICO
34,30% CHINA
3,67%
GERMANY
3,62%
COLOMBIA
As of december 2021
Source: Descartes Datamyne - National Customs Service.
90
El Salvador After a sharp contraction in 2020, the Monetary Fund projected that the economy would grow by approximately 10% of GDP in 2021, and 3.2% in 2022. This has much to do with the rebound in external demand and El Salvador’s response to the pandemic. The country recorded one of the lowest rates of COVID-19 infections and deaths in the region, and has a relatively high vaccination rate. Medium-term growth rates in El Salvador will slow to about 2% as stimulus policies in the United States are withdrawn. On the other hand, the 64.8 % growth of gross fixed capital formation during the second quarter of 2021 was related to the continuity of investment in infrastructure of buildings, roads, improvement of hospitals and schools, among others; and by investment in machinery and equipment through the acquisition of communications equipment, mainly computers related to teleworking and online service provision; transportation equipment for services; equipment for electricity generation, among others.
BROADCAST EQUIPMENT IMPORTS TO EL SALVADOR
Additionally, exports grew 113.5 % in the second quarter of 2021, in response to the higher demand coming from Central American trading partners and the United States; while private consumption, which constitutes the most important expenditure component within GDP, grew 39.2 % in the period thanks to the higher income that households are obtaining through family remittances and wages; the latter show as of June 2021 a growth of 7.3 % among workers contributing to the Salvadoran Social Security Institute (ISSS). 37,70% UNITED STATES
9,03% MEXICO
28,07% CHINA
3,13% GUATEMALA
22,07% PANAMA As of december 2020
Source: ITC - Central Reserve Bank of El Salvador
LATIN AMERICA BROADCAST MARKET REPORT 2022
91
Panama The World Bank forecasts real GDP growth of 9.9% in 2021 and then a convergence to a potential growth rate of about 5%. The budget deficit will remain high in 2021, but will be below the deficit reduction path established in the revision of the Social and Fiscal Responsibility Law (7.5% of GDP by 2021). On the other hand, Panama’s statistical institute reported that the performance of the economy in the third quarter of 2021, measured through the Quarterly Gross Domestic Product (GDPT), showed an increase of 25.5 %, with respect to the period of the previous year. The GDP, valued at 2007 prices, registered an amount of $103.4 billion USD for the compiled quarter, which corresponds to an increase of $210.07 billion USD. They also indicated that the behavior observed in the different economic activities was a reflection of the economic reactivation since the elimination of the sanitary restrictions imposed by the health authorities due to the COVID-19 pandemic. Imports of Digital Signage equipment to Panama as of December 2020.
BROADCAST EQUIPMENT IMPORTS TO PANAMA
52,48% COLON FREE TRADE ZONE 24,92% UNITED STATES
19,25% ALBANIA 3,35% MEXICO
As of december de 2021
Fuente: Descartes Datamyne - Autoridad Nacional de Aduanas.
92
Dominican Republic According to estimates by the Economic Commission for Latin America and the Caribbean (ECLAC), the Dominican economy would register 8.0% growth in 2021. “The recovery would be due in part to the successful vaccination campaign and the expected growth of the U.S. economy, the main source of income from family remittances and tourists.” Increased economic activity would result in higher revenues, which, together with the gradual elimination of tax exemptions, would reduce the non-financial public sector fiscal deficit to 3.0% of GDP. The current account deficit is expected to narrow to the equivalent of 1.4% of GDP, close to its pre-pandemic level. Inflation would close the year at around 5%, close to the upper end of the target range. As of April 2021, total exports grew at a year-onyear rate of 22.9%. Imports also recorded a positive variation of 21.2%. Remittances maintained their dynamism, with an increase of 17.9% year-on-year compared to June 2020.
BROADCAST EQUIPMENT IMPORTS TO DOMINICAN REPUBLIC
77,00% CHINA
4,40% PANAMA
10,30% UNITED STATES
3,10% SOUTH AFRICA
5,20% MEXICO As of december 2021
Source: International Trade Center (ITC)
LATIN AMERICA BROADCAST MARKET REPORT 2022
93
Honduras In the first quarter of 2021, total central government revenues registered a real year-on-year growth of 10.9%, in the face of an increase in tax revenues (13.5% real year-on-year). This was due, in part, to the collection of the December 2020 installment of income tax payments on account, which was postponed to January 2021. Expenditure rose by 4.5% (0.5% real) year-on-year, due to higher spending on wages and salaries and an increase in current transfers. As of March 2021, the public sector external debt balance contracted by 0.6% (USD 58.5 million) compared to the December 2020 balance, due to a net amortization of USD 22.0 million and a favorable exchange rate variation. In March, the Government acquired new debt of USD 220 million with the World Bank’s IDA and USD 44.7 million with the IDB. Exports of services reached USD 722 million, 38.7% below the value accumulated in 2019. In addition to the notable contraction in travel revenue (-65.8 %), there was a drop in the export of communications services (-18.9 %) and business services (-6.2 %).
BROADCAST EQUIPMENT IMPORTS TO HONDURAS
As of April 2021, exports had decreased by 13.1%, compared to the same period in 2020. This behavior is associated with the drop in exports of bananas, melons, watermelons and sugar, four crops that, despite improved prices, negatively affected by tropical storms. Imports increased at a year-on-year rate of 27.6% to April 2021. Consumer goods grew by 29.5%, especially non-durable goods. Imports of capital goods totaled USD 553.4 million, up 42.2 % from April 2019, as a result of increased purchases of transport vehicles and machinery for the textile and agricultural industry.
73,44% CHINA
5,00% UNITED STATES
10,64% Taiw An, PROVINCE OF CHINA
3,42% ISRAEL
7,50% MEXICO As of december 2020
Source: Descartes Datamyne - National Customs Authority.
94
Guatemala ECLAC estimates that Guatemala’s GDP will grow by 4.6% in 2021. The central government deficit will close the year at around 3.5% of GDP, as a result of a gradual recovery of revenues. The current account surplus is expected to be around 2.5% of GDP, mainly due to the recovery of imports as a result of the reactivation of consumption and investment. Year-on-year inflation (December to December) would close at around 3.8%, within the central bank’s target range (4%, with a one percentage point tolerance in both directions), due to fewer restrictions on the supply of goods and services. The open unemployment rate is expected to decrease in 2021, to the extent that progress is made in vaccination and the dynamism of economic activity recovers. For 2021, a fiscal policy with a strong execution of public spending is expected towards the second half of the year, so that, as of the first four months of the year, a surplus is recorded. Total public revenues experienced a real year-on-year growth of 12.3% as of April 2021. Tax revenues expanded by 13.3 % in real terms, while non-tax revenues fell by 5.2 %, also in real terms. As of the first four months of 2021, total expenditures recorded a real annual decline of 3.4%. Capital expenditures, on the other hand, showed an increase of 0.4% in real terms.
BROADCAST EQUIPMENT IMPORTS TO GUATEMALA
34,00% UNITED STATE
17,05% PANAMA
30,15% CHINA
11,40% SPAIN 7,40% MEXICO
As to december 2021
Source: International Trade Center (ITC) Central Bank of Guatemala.
LATIN AMERICA BROADCAST MARKET REPORT 2022
95
MAP OF SOUTH AMERICA WITH DATA FROM THE TRADE BALANCE TABLE OF THE ANDEAN REGION AND THE SOUTHERN CONE. % EXPORT GROWTH IN 2020 - 2021
23,10%
Venezuela
-4,60%
TRADE BALANCE 2020 - 2021 Bolivia 64,800 (deficit)
Colombia
Colombia 12,481 (deficit)
2,29%
Ecuador
Brazil 3,02%
3,07%
Peru
Ecuador 2,267 (surplus) Peru 6,314 (surplus) Venezuela 1,530 (deficit)
0,18%
Bolivia
Brazil 43,602 (surplus)
5,02% Chile
* Note: latest data available 2020 - 2021
96
3,22%
Argentina
Argentina 12,530 (surplus) Chile 12,695 (surplus) In thousands of dollars. Source: ECLAC. * ECLAC estimate
Andean Region
Bolivia In the first months of 2021, the economy has shown important signs of recovery due to the improvement of the international environment and the relaxation of the isolation measures adopted at the beginning of the pandemic. According to ECLAC, “high public indebtedness and modest international reserves could limit efforts to invigorate the economy through expansionary policies alone, especially if the private sector does not play a more active and sustained role.” In 2021, Bolivia’s average inflation rate was projected to register one of its highest points, at over 3.8%. Additionally, from 2024 onwards, the inflation rate is also expected to remain stable at 3.5% until 2026. The 2022 General State Budget (PGE) establishes an economic growth of 5.1%, inflation of 3.4%, public investment of USD 5,015 million and a fiscal deficit of -8%. Imports will approach USD 8 billion, with USD 7.424 billion reported for October 2022.
BROADCAST EQUIPMENT IMPORTS TO BOLIVIA
69,30% CHINA
8,00%
CANADA
15,00% MEXICO
7,22%
UNITED STATES
As of december 2021
Source: International Trade Center (ITC) - Pro-Bolivia.
LATIN AMERICA BROADCAST MARKET REPORT 2022
97
Colombia The Colombian economy grew by 10.6% in 2021, after plummeting 7% in 2020 due to the ravages of the pandemic, according to official data from the National Administrative Department of Statistics (DANE). Both figures are historic. Last year’s is the largest increase in gross domestic product (GDP) in the country, at least since the statistical authority has been keeping records, in 1975. In the region, Colombia’s growth is only below the current projections of the Organization for Economic Cooperation and Development (OECD) for Chile (12%), and is above Argentina (8%) or Mexico (5.9%). The OECD also updated its projections for Colombia, and expects it to grow 5.5% in 2022 and 3.1% in 2023. In terms of unemployment, the year 2021 closed with an unemployment rate of 13.7%, a reduction compared to 15.9% in 2020. The informality rate for 2021 reached 48.4%. In turn, consumption, especially private consumption, has been leading the recovery: it will grow 12.2% in 2021 and 4.1% in 2022, with a gradual rebalancing from spending on goods to services.
BROADCAST EQUIPMENT IMPORTS TO COLOMBIA
Investment, despite growing 13.1% in 2021, will not be able to recover its pre-pandemic levels. In 2022, investment will grow 4.5%. By 2022, the moderation of domestic demand, the reactivation of services exports and higher oil production will help moderate the current account deficit to 4.5% of GDP. 50,30% ISRAEL 46,70% UNITED STATES
As of december 2021
Source: Descartes Datamyne - DIAN.
98
3,00% SPAIN
Ecuador According to the latest report of the International Monetary Fund (IMF), “the latest growth expectations for the region at the end of 2021 rose to 6.3%, compared to July’s estimates (5.8%) mainly due to the reopening and progress in vaccination. Ecuador would have an economic growth of 2.8% by the end of 2021 and 3.5% by 2022”. Similarly, the inflation projection for 2022 is 2.1%, which evidences a potential recovery of prices. Similarly, the IMF estimates a 0.4 p.p. reduction in unemployment between 2021 (4.6 %) and 2022 (4.2 %). This scenario is explained by the increase in oil prices, the easing of restrictions and the boost in the export of raw materials. On the other hand, foreign direct investment (FDI) reached USD 364 million between January and June 2021, i.e. 19.9 % (USD 91 million) lower than in the same period of 2020, according to the Central Bank of Ecuador. The sectors that received the highest FDI were: business services (USD 143 million); construction (USD 85 million); and manufacturing (USD 52 million).
BROADCAST EQUIPMENT IMPORTS TO ECUADOR
Despite the performance in this first semester, the government mentioned its interest in increasing FDI, progress is shown in the willingness to invest in international companies, mainly from Peru, Colombia and Mexico. These companies highlight Ecuador’s low inflation, current political stability, economic reactivation, commitment to fiscal adjustment and legal security.
60,00% CHINA 17,00% UNITED STATED
10,00% KOREA, REPUBLIC OD 6,50% HONG KONG 6,50% JAPAN
As of december 2021
Fuente: Descartes Datamyne – Servicio Nacional de Aduana.
LATIN AMERICA BROADCAST MARKET REPORT 2022
99
Venezuela ECLAC estimates that the Venezuelan economy will grow by 1% in 2022, as a result of a greater availability of external assets that imply increases in both crude oil prices and exported volumes, due to the normalization of Venezuelan crude oil commercialization processes as a result of the greater growth of the main destinations of said product, and a possible relaxation of the sanctions imposed by the United States. Private consumption could recover as a result of a greater dynamism in remittances and the end of restrictions on mobility within the country. In this scenario, the Venezuelan economy would put an end to an episode of contraction that has lasted eight years and that, by the end of 2021, would bring Venezuelan GDP to represent just over 24% of what it was in 2013.
There is no graph due to lack of data availability.
BROADCAST EQUIPMENT IMPORTS TO VENEZUELA
Venezuelan exports of goods and services fell by nearly 50 % in 2020, after falling by 33 % in 2019. This further plunge in exports in 2020 reflects the considerable decline in the average price of the Venezuelan crude oil basket, which fell by 50 % compared to the average value in 2019 (USD 56.6 per barrel). Similarly, the reduction in the volume exported, estimated at 36 %, also contributed to the sharp decline in Venezuelan exports during 2020. Imports of Venezuelan goods and services decreased by more than 40% in 2020, reflecting the sharp contraction in aggregate demand, as well as the lower availability of foreign currency implied by the drop in exports and the sharp decline in remittances sent by Venezuelans working abroad during 2020.
100
41,70% UNITED STATES 23,30% COLOMBIA
19,00% CHINA 16,0% OTHERS (PANAMA, MEXICO, ITALY, SPAIN, BRAZIL)
As to december 2021
Source: Descartes Datamyne with information from partner countries.
Peru For 2021, the Economic Commission for Latin America and the Caribbean (ECLAC) projected a growth of 10.6%. With the data available for 2021, it can be seen that in the first half of the year, domestic production accelerated and presented a growth of 20.9%, registering positive results in practically all sectors, although it is necessary to take into account the low base of comparison. The reopening of all productive sectors and the recovery of aggregate demand, particularly domestic demand, contributed to this rebound. In July, the fiscal account showed a primary deficit of 4.5% of GDP in the 12-month accumulated period, a progressive decline from a deficit of 7.3% at the end of the previous year. This was due to the gradual recovery of tax revenues at a higher rate than the increase in spending after the application of tax relief measures, higher taxes from the mining sector and the gradual recovery of activity. The central bank also projected that in 2021 the public deficit will be halved and public debt will remain stable at 34.4% of GDP (compared to 34.8% in 2020).
BROADCAST EQUIPMENT IMPORTS TO PERU
Revenues rebounded to 19.2% of GDP due to a rebound in activity and higher tax and royalty collections from the mining sector. Non-financial expenditures declined to 23.9% of GDP as a result of lower current expenditures, which more than offset higher capital expenditures. The fiscal deficit narrowed to 4.9% of GDP. 50,00% CHINA
9,60% MEXICO
25,80% UNITED STATES
9,40% VIETNAM 5,20% JAPAN
As of december 2021.
Source: Descartes Datamyne – National Customs Service.
LATIN AMERICA BROADCAST MARKET REPORT 2022
101
Southern Cone
Argentina In the first half of 2021, the Argentine economy showed a recovery after the gradual lifting of the restrictions on circulation implemented since the end of the previous year. The Monthly Estimator of Economic Activity (EMAE), published by the National Institute of Statistics and Censuses (INDEC), grew by 9.7% year-on-year in the accumulated of the first six months of the year, placing 3.9% below the value of the same period of 2019, before the irruption of the pandemic. Inflation in the first seven months of the year accelerated to 45.7 % year-on-year, in the context of the increase in international commodity prices, the unfreezing of a set of regulated prices and the economic recovery. In the same period, the trade surplus in goods narrowed, as a result of an increase in imports (51 %) that was greater than that of exports (31 %). In any case, the high foreign exchange liquidation of the export sector and the crediting of special drawing rights (SDRs) issued by the International Monetary Fund (IMF) resulted in international reserve s(a key variable in the context the external crisis afflicting the country)since the beginning of 2018 increasing to about USD 46.2 billion at the end of August 2021. In the first half of 2021, the central bank kept unchanged the annual nominal monetary policy interest rate (38 %), the minimum guaranteed rate for 30-day time deposits of individuals up to 1 million pesos (37 %) and the minimum guaranteed rate for all other time deposits (34 %). During this period, the interest rate for personal loans also remained stable at 52.7% nominal annual rate.
BROADCAST EQUIPMENT IMPORTS TO ARGENTINA
60,90% CHINA 13,90% UNITED STATES 13,00% MEXICO
5,00% 2,60% 2,40% 2,20%
BRAZIL ISRAEL POLAND INDONESIA
As of december 2021
Source: Descartes Datamyne - National Customs Service.
102
Uruguay The markets for Uruguay’s main products have shown favorable signs, and the reactivation measures in the central countries have generated a context of high international liquidity. The Uruguayan economy is expected to grow by 4.1% in 2021, driven by a recovery in the level of activity in the manufacturing industry, gross fixed capital formation, and goods exports. The IMF projected economic growth of 3.4% in 2021 and 3.2% in 2022. The reopening of borders and the resumption of tourism could support growth in 2022, although the outlook remains uncertain. Inflation is expected to close 2021 at around 7.2% and to remain on a downward trajectory, reaching 5.8% by the end of 2022. External demand also had a negative contribution to growth (-2.1 %) due to the sharp drop in exports (-16.2 % YoY) above the drop in imports (-10.8 % YoY). The services sector, led by tourism, was one of the hardest hit by the sanitary emergency and the continued border closure will continue to severely affect this branch of activity.
BROADCAST EQUIPMENT IMPORTS TO URUGUAY
Given the temporary closure of businesses and industries and the consequent reduction in income, consumption in the country fell 6.9% in 2020, but a recovery is expected for 2021, reaching 1.7%. Investment will maintain positive indicators in 2021, as a result of the progress of the third pulp mill project in the country (UPM II) and the FFCC works. This would place investment at 11.7% versus 8% in 2020. 60,90% CHINA
5,96% BRAZIL
21,73% MEXICO
5,86% TAIWAN 5,55% UNITED STATES
As of december 2021
Source: Descartes Datamyne - General Directorate of Customs.
LATIN AMERICA BROADCAST MARKET REPORT 2022
103
Chile For 2022 and 2023, the growth ranges are corrected downwards, given the higher base of comparison, the gradual decline in the impulse to consumption and a limited dynamism of investment. In the central scenario, GDP will grow between 2 and 3 % in 2022, and between 1.75 and 2.75 % in 2023. The annual increase in private consumption will moderate significantly over the next two years, largely reflecting the temporary nature of the current income support measures. In investment, significantly lower rates of expansion are expected for 2022-2023 than in 2021. This is mainly due to the low dynamism of construction and works, the slow incorporation of new projects to the cadastres, the maintenance of uncertainty at high levels, the higher indebtedness of companies and the evolution of local financial conditions. Underlying inflation will close the year slightly below 4 % annually. Rising energy prices will continue to dominate the volatile component. Thus, after reaching higher values in the second half of the year, total annual CPI inflation will be 4.4% in December 2021.
BROADCAST EQUIPMENT IMPORTS TO CHILE
In 2022 and 2023, as the fiscal and monetary impulse normalizes, inflation will converge towards 3%, to remain at that value by the end of the policy horizon, in the second quarter of 2023.
62,00%
CHINA
11,00% TAIWAN
20,00%
UNITED STATES
7,00%
UNITED KINGDOM
As of december 2021
Source: Descartes Datamyne - National Customs Service.
104
LATIN AMERICA BROADCAST MARKET REPORT 2022
105
Reference index Cited sources: National Association of Industrialists (ANDI), “COLOMBIA: BALANCE 2020 AND PERSPECTIVES 2021”, 2021. Bank of the Republic of Colombia, “Monetary Policy Report”, February 11, 2022. Central Reserve Bank of El Salvador, “Salvadoran economy grew 24.5% in the second quarter of 2021”, October 1, 2021. Inter-American Development Bank, “The current situation and challenges of the telecommunications sector in Panama”, September 2021. Inter-American Development Bank, “BEHIND THE SCENES: CREATIVITY AND INVESTMENT FOR LATIN AMERICA AND THE CARIBBEAN Lessons from a conversation with key voices in the audiovisual sector”. Inter-American Development Bank, “Broadband Policies for Latin America and the Caribbean”. World Bank, “Panama: overview”, October 6, 2021. World Bank, “Bolivia: overview”, October 11, 2021. National Association of Industrialists (ANDI), “COLOMBIA: BALANCE 2020 AND PERSPECTIVES 2021”, 2021. Bank of the Republic of Colombia, “Monetary Policy Report”, February 11, 2022. Central Reserve Bank of El Salvador, “Salvadoran economy grew 24.5% in the second quarter of 2021”, October 1, 2021. Inter-American Development Bank, “The current situation and challenges of the telecommunications sector in Panama”, September 2021. Inter-American Development Bank, “BEHIND THE SCENES: CREATIVITY AND INVESTMENT FOR LATIN AMERICA AND THE CARIBBEAN Lessons from a conversation with key voices in the audiovisual sector”. Inter-American Development Bank, “Broadband Policies for Latin America and the Caribbean”. World Bank, “Panama: overview”, October 6, 2021. World Bank, “Bolivia: overview”, October 11, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “Macroeconomic Report-Peru”, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “Macroeconomic Report-Venezuela”, 2021.
106
Economic Commission for Latin America and the Caribbean (ECLAC), “Macroeconomic Report- Brazil”, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “Macroeconomic Report-Uruguay”, 2021. Economic Commission for Latin America and the Caribbean (ECLAC), “International Trade Outlook for Latin America and the Caribbean”, 2021. El País, “Colombia’s GDP grew 10.6% in 2021, the largest annual increase since there are records”, February 15, 2022. El Puerto Noticias, “MTC granted 523 new radio and television authorizations during 2021”, January 15, 2022. Infobae, “OECD reduced its GDP growth forecast for Mexico to 2.3% for 2022”, February 21, 2022. Faculty of Engineering and Agricultural Sciences, Electronic Engineering and communication networks of the University of the Americas, “FEASIBILITY STUDY FOR THE IMPLEMENTATION OF IPTV WITH HD RESOLUTION (HIGH DEFINITION) IN THE “MARISCAL” SWITCHING CENTRAL OF THE NATIONAL CORPORATION OF TELECOMMUNICATIONS PUBLIC COMPANY (CNT E.P.), USING XDSL ACCESS TECHNOLOGY WITH OPTICAL NODES”. International Monetary Fund (IMF), “WORLD ECONOMIC OUTLOOK UPDATE”, January 2022. International Monetary Fund (IMF), “El Salvador’s recovery is limited by increased risks”, February 16, 2022. International Monetary Fund (IMF), “Uruguay: Final Staff Statement on the 2021 Article IV Consultation Mission to Uruguay” , October 6, 2021. Revista Semana, “IMF reduced growth outlook for the world economy for 2022”, January 25, 2022. World Trade Organization (WTO), “The recovery of world trade exceeds expectations, although with regional divergences”, October 4, 2021. World Trade Organization (WTO), “Trade can help put the UN Sustainable Development Goals on track: Director General Okonjo-Iweala”, 6 July 2021. Portfolio, “International trade will grow 10.8% this year, according to the WTO”, October 4, 2021. Presidency of Costa Rica, “BCCR ESTIMATES ECONOMIC GROWTH FOR 2021 AT 7.6% AND PROJECTS 3.9% FOR 2022 AND 4.0% FOR 2023”. Procomer, “IT SPENDING IS PROJECTED TO GROW 9% BY THE END OF 2021”, July 16, 2021. Platforms News, “Costa Rica: Fixed Internet subscribers grow and pay TV falls”, July 20, 2021. Mordor Intelligence, “BROADCASTING EQUIPMENT MARKET: GROWTH, TRENDS, IMPACT OF COVID-19 LATIN AMERICA BROADCAST MARKET REPORT 2022
107
AND FORECASTS (2022 - 2027)”. Noticias Ampm, “The good time of the Colombian audiovisual industry”, October 10, 2021. Audiovisual Panorama, “Sony reveals the future of remote and distributed production”. Señal News, “WHAT ARE THE MAIN TRENDS IN SATELLITE AND PAY TV IN LATIN AMERICA?”, February 7, 2022. Superintendence of Competition El Salvador, “Conditions of competition in open television in El Salvador”. Tavi Latam, “Pay TV concludes Q2 2021 with 805 thousand clients, increasing 4% annually”, August 31, 2021. The World New, “Asep will carry out the first simulation of the analog television blackout tomorrow”, May 5, 2022. Transparencia Venezuela, “COVID-19 SITUATION DEMANDS TO GUARANTEE INTERNET ACCESS”, May 17, 2021. Unesco, “Media development in Uruguay: diagnosis, perspectives and challenges”, 2021. Databases: International Trade Center (ITC). With information from UN Comtrade (United Nations Organizations Trade Statistics Database) and official sources:: • El Salvador: Central Reserve Bank. • Guatemala: Central Bank of Guatemala. • Paraguay: General Directorate of Customs. • Rep. Dominicana: UN Comtrade. Descartes Datamyne. With information from official sources and partner countries: • Argentina: General Directorate of Customs. • Brazil: Latin American Integration Association (Aladi). • Chile: National Customs Service. • Colombia: Directorate of National Taxes and Customs (Dian). • Costa Rica: National Customs Service. • Ecuador: National Customs Service. • Honduras: General Director of Customs Franchise Control. • Mexico: National Institute of Statistics and Geography of Mexico (Inegi). • Panama: National Customs Authority. • Peru: National Superintendency of Customs and Tax Administration (Sunat). • Uruguay: General Directorate of Customs.
108
Harmonized tariff classification codes (HS-code) analyzed*: HS-Code** 8517610000 8517622000 8521100000 8521909000 8525502000 8525801000 8526100000 8527190000 8528490000 8529901000
Descripción Applies to telephone intervention systems (composed of a receiver, a transmitter and a recorder). 1. Radio harris (transmits voice and data in narrow band and broadband). 2. HF/UHF transceiver. Apparatus for recording or reproducing images and sound (videos), of magnetic tape, even with an image and sound signal receiver incorporated. Other image and sound (video) recording or reproducing apparatus, even with an image and sound signal receiver incorporated. Emitting devices, television.1. Multiplexers (used to transmit more than two messages simultaneously).2. Quad Color 4 and 8 channels.3. CCTV transmitter balun. CCTV cameras. The following are excepted from the requirement: cameras for television studios. Mobile automated speed control equipment (includes video camera). Other broadcasting receivers that can function without an external power source, including those that can receive radiotelephony or radiotelegraphy signals. Other monitors with cathode ray tubes, which do not include a television receiver. Furniture or boxes, identifiable as intended, exclusively or mainly, for the apparatus of headings 85.25 to 85.28.
* For the tables and graphs of imports by companies and equipment in Chapter 1, only the tariff classification codes of products related to Broadcast equipment were taken for transactions carried out until March 2022. Technical Sheet Survey “TOP BRANDS IN LATIN AMERICA” Data collection dates: March 18, 2022 to May 18, 2022. Data collection technique: Online survey on the Encuestadatos.com platform. Method: multiple choice questions. Subjects to which it refers: Selection of one or several brands of equipment and software, and types of solutions most used in Broadcast. Target group: Latin American Broadcast Integrators. Survey developed by Latin Press, Inc.
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