AMI: Latin consumers willing to change rapidly

Among the disruptive trends that are rapidly changing the service sector in Latin America, John Price—Managing Director Americas Market Intelligence, LLC (AMI)— highlighted Uber-style transportation services. 

“45% of smartphone users in the region have used the Uber app, and in Mexico alone, the figure is 58%. Transportation service apps lead 40% of the taxi markets in Mexico and Brazil,” quoted Price during his talk “Latin America 2020: Navegando la Disrupción Que Se Viene” en el primer Premium Video Advertising Summit de LAMAC.

Another disruptive trend happens in entertainment with Netflix, where he mentioned there are 20 million users in Latin America, 25% of the pay-TV market. He detailed that 6 out of the top 10 markets per hours viewed Netflix has worldwide corresponded to Latin American countries: Mexico (1), Peru (3), Chile (5), Brazil (6) and Argentina (7).

In hospitality, he said that Airbnb has 400 thousand listed. In Mexico alone, it grew 58% in 2018 and has more listed than hotel rooms available.

He highlighted that disruptors go beyond direct-to-consumer competitors. He pointed out that scheduled TV has to change.

“Lack of competition, political control of media, has made these companies become a loser, forcing the TV viewer to watch more advertising than in other parts of the world at a higher cost. Those who offer alternatives are going to win. This is going to change faster in Latin America than in the US. Homes that have pay-TV, Internet and mobile telephony already have the infrastructure to migrate. Their clients can disappear overnight. Latino consumers are willing to change, you just have to grasp their attention,” he ended.