MVS creates a business vertical based on the streaming service

The multimedia group MVS Communications began marketing a new on-demand content distribution product through the brand “MVS Hub”.

It is a digital application that consolidates the OTTs with the highest penetration in the market, and at the same time it is a business alternative to try to attract, migrate and retain video customers in the face of the complicated economic, consumer habits and technological context. that impacts all pay television systems in Mexico, such as Dish, the satellite television division of MVS Comunicaciones.

This is also the fourth most important bet that MVS Comunicaciones has made since 2017, the year in which it sold its 2.5 GHz spectrum to Telcel for 303 million dollars to focus on other business verticals such as the addition of Internet and telephony to Dish. with inputs from América Móvil and FreedomPop; also to the purchase of a university that it acquired and reconfigured to create human capital that one day it could use and now it ventures with an OTT aggregator.

MVS Hub is a platform that brings together Netflix, Amazon Prime, HBO MAX, StarzPlay, Paramount Plus, Edye, Noggin y Hot Gothrough six packages that offer different combinations of content and the possibility of also adding pay television channels, with total savings of between 28% and 40%, says the company, in comparison with the fact that the consumer contracts all these services separately.

Roger Quintín, current general manager and director of dish mexico and now also the director of MVS Hub, recognized the adverse effects that pay television is facing and that the new product is an alternative for MVS Comunicaciones to stay in the business of distributing video content.

The platform will take five weeks at most (…) It is a service that travels over the Internet; over the Internet from any provider (…) This is a service that has nothing to do with Dish and its pay television. We are pushing a new business vertical and our idea is for it to be as big as Dish in the medium term, within three years it will be as big as Dish. It is another bet on video content”, said Quintín.

The pay television in Mexico faces a series of disconnections due to competition from OTT services. In Dish’s own context, the company had 1.48 million accesses nationwide, a figure well below the 3.77 million subscriptions five years ago.

The entire pay television industry accounted for 20.5 million accesses in Mexico last year and generated 126,000 million pesos in all of 2021, according to data from the Federal Institute of Telecommunications (IFT).

The Global Entertainment & Media Outlook 2022–2026 report cites that the restricted television business still generates revenue in Mexico, some 4,619 million dollars, against the 1,257 million dollars that to date the OTTs produce for their respective parent companies, with 20.4 million accounts in use for this year.

But OTT will be more advanced than pay TV. According to estimates by Digital TV Research, by 2027, on-demand content distributed by companies such as Netflix and through platforms such as MVS Hub will generate some 8.540 million dollars throughout Latin America, compared to 5.010 million dollars recorded in 2021.