Streaming platforms drive investment in content

As we have previously mentioned, the pandemic phenomenon has forever changed the way we live, how we work, how we shop, how we study, and how we entertain ourselves. From this perspective, the great winner of this phenomenon has been the telecommunications industry and all the activities derived from it.

In general, it can be said that human beings who live in urban or conurbation areas throughout the planet dedicate much more time, money and attention to the consumption of data and digital content. To this phenomenon, it is worth adding the improvement of smartphones, screens and computers.

This, without a doubt, translates into good news for the streaming industry. According to a study prepared by the Federal Institute of Telecommunications entitled “OTT digital platforms”, streaming activities generate 60% of internet traffic worldwide. This figure is surprising as it outperforms the super popular social networks, which generate approximately 6% of traffic, or even online marketplaces that generate 2.6 percent.

The study suggests that this data may indicate that an important part of households are substituting pay TV for streaming services. According to a note by Adrian Arias in El Heraldo de México, viewers who watch content via OTT platforms spend an average of 3.2 hours a day on this activity, while open television viewers only spend 2.41 hours.

The data from the IFT study not only gives us an idea of ​​the volume of the audience that OTT platforms have, but also points us to other indicators of great interest to observers of this industry. According to Prensario Internacional, absolutely all the leading platforms in the world increased their investment in content production significantly during 2021. It is estimated that the total investment in digital content for platforms during that period was 50 billion dollars. The predominance of Disney stands out, which invested around 30 billion dollars in content. The entertainment giant owns brands like Disney+, Hulu and ESPN among many more.

Another interesting fact is to know that much of this content investment is channeled to regional markets and therefore is produced at a regional level, with local cameramen, local actors, regional locations, etc. This type of content generation offers local benefits through local investments.

Based on this data, we can also assume that this growth will represent a great opportunity for various industries related to content creation. Thus, it is not surprising that countries, municipalities or cities with aggressive investment attraction policies are promoting this type of activity through fiscal and social incentives that invite content producers to use their territory and human capital for this purpose.

Antonio Aja



Reference-www.eleconomista.com.mx

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