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Pandemic Boosts Streaming App Revenue 26% This Year

The health emergency, with the isolation recommendations to avoid the contagion of COVID-19, will drive a 26 percent growth in the revenue of streaming video platforms such as Netflix, Claro Video and Amazon Prime by the end of this year.

PwC in its report “Entertainment and Media Outlook 2020-2024”, indicated that the Mexican market for these services will generate revenues of 881 million dollars for this year, an annual increase of 26 percent.

Along the same lines, Statista expects that sales of these platforms in Mexico will go from 696 to 868 million dollars between 2019 and this year, an annual increase of 25 percent.

In addition, so far this year, 3.3 million Mexicans have hired some content on demand service, with which Mexico is expected to close 2020 with an increase of 18.5 percent in the number of users, for a total of 21.1 million users. customers.

The increase occurs, just at a time when the deputy Sergio Mayer presented an initiative that aims to tax devices such as smartphones, tablets, screens and even game consoles, considering that those who contract services on demand make a private copy of the content available on Internet.

“The adoption of technology and connectivity are essential for the development and economic recovery of the country and they intend to install an extraordinary position that today would be no more than an obstacle to the well-being of the nation,” criticized the Institute of Telecommunications Law (IDET).

The IDET estimated that consumers in Mexico will have to pay, altogether, up to 6 thousand 205 million pesos a year more for the surcharge generated by the acquisition of smartphones and computers.

Sherlock Communications’ Consumption of streaming services in Latin America report revealed that 82 percent of Mexicans have subscribed to at least one streaming platform so far in 2020.

Likewise, the study found that 22 percent of Mexicans subscribe to four or more streaming platforms and 42 percent of respondents in Mexico choose a digital transmission platform because they are tired of the programming offered by traditional television. .

Due to the increase in the demand for streaming content, the animation industry in Mexico has benefited from a 30 percent increase in the development of animated productions.

“The growth that animation has had in terms of commissions (number of animated productions) from COVID up to now has grown by 30 percent because they are exploring new formats,” said José Iñesta, director of Pixelatl, a platform that promotes industries creatives from Latin America.

He added that the increase in projects by streaming platforms and international production companies was reflected in higher hires, since the studios in Guadalajara that previously had six people now work with 60.

“Each studio is receiving three or four projects each and before they were small projects and now they are large full-length films and more staff is required,” he said.

Iñesta assured that the platforms are committed to regionalizing their animated portfolio, since they realized that their audiences demand this type of content.

He recalled the cases of Onyx Equinox, a series inspired by the Aztecs that will premiere this month on the Crunchyroll platform, and that of Maya and the Three, which will be available on Netflix next year.

The increase in demand for animation content is not only coming from streaming platforms, but from video game producers and brands, according to Kurt Gastulo, CEO of PLAN B, a design studio.

The manager assured that given the difficulty that still represents filming live by Covid-19, companies have also seen in animation an option to continue their advertising campaigns and even to make their video games.

Such is the case of Bimbo with his Nawaiam game with which he selects and hires his collaborators, he explained.

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