As nearly six out of ten Hispanics in the U.S. state that they won't subscribe to cable or satellite services, streaming platforms present a one-trillion-dollar opportunity for companies aiming to tap into this vast market.
The diverse streaming platforms, which gained prominence in terms of consumer preference during the Covid pandemic, are now the preferred media for Hispanics. They spend more time watching connected devices than other groups.
According to Nielsen, a market research firm, Hispanic adults spend a total of 50.7% of their time on streamed content, which is 13% higher than the general population's usage of 37.7%.
While streaming reigns supreme in Hispanic entertainment, cable and satellite companies are facing challenges. A significant portion of the Latino population in the country has become cord-cutters, with millions canceling their subscriptions.
"I don't want to pay top dollar for services that we seldom use at home. Instead of TVs with satellite, we prefer to stream content because it's cheaper and more versatile as streaming companies offer more content and you can carry it on any device," Jossee Ortega, a marketing expert from St Louis, told The Latin Times.
Ortega is part of a trend that reportedly represents a potential windfall for companies reaching out to Hispanic consumers.
"Advertisers and content creators must grapple with a rapidly evolving media landscape as cord-cutting and streaming become dominant," states MRI-Simmons, a research firm in a report.
MRI-Simmons' Cord Evolution study says that 57% of Hispanic consumers don't subscribe to a cable or satellite service and are 14% more likely to be cordless than the average American.
"Hispanics are 10% more likely to not have a cable or satellite subscription. Over half (57%) are currently 'cordless,' and slightly less than 1/3 are content with their conventional TV service," as per MRI-Simmons.
As streaming gains popularity among Hispanics, their spending on these services is also on the rise. More and more Latinos are opting to allocate their entertainment budget towards streaming platforms.
The market potential, says The Video Advertising Bureau (The VAB), amounts to $1 trillion, or a third of the total economic output contributed by the more than 60 million who identify themselves as Hispanics or Latinos in the U.S.
"As the Hispanic segment collectively spends almost $1 trillion annually on goods and services in the U.S., engaging them through streaming video is an important part of getting access to their wallets," says The VAB.
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