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New Study Shows Higher Levels of SVOD, AVOD and Pay TV Use in Latinx Homes

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NEW ROCHELLE, N.Y.—A new report from Horowitz Research highlights the growing importance of Latinx audiences for both streaming and pay TV providers at a time when media companies are expanding the availability of Spanish-language content.

The FOCUS Latinx: State of Pay TV, OTT & SVOD 2022 report from Horowitz found that seven in ten (71%) of Latinx TV content viewers watch Spanish-language programming–up 11% from last year–and that two-thirds watch international content, an increasing amount of which is accessed via SVOD (subscription) and AVOD (free) streaming services. 

The report found that the share of Latinx TV content viewers who rely only on streaming has continued its upward trajectory with 38% of Latinx only subscribing to streaming services and not to an MVPD.

But it also reported that with more Spanish-language and Latinx-themed SVOD and AVOD content and services available, Latinx households continue to be among the most loyal pay TV customers. The penetration of MVPD services among Latinx households now stands at 52%, slightly above the 51% rate for the overall U.S. market. 

The study also shows that Latinx TV content viewers over-index for subscribing to SVODs and using AVODs compared to the total market, highlighting a trend that Horowitz has been documenting for many years. 

This is due, in part, to the fact that these households want access to both Spanish/Latinx-themed and English/mainstream content, the researchers noted. 

“We have always been bullish about the Spanish-language and Latinx-themed content space, but until recently, this was an audience that was underserved and an opportunity that was not being fully realized,” notes Adriana Waterston, chief revenue officer and insights & strategy lead for Horowitz Research. “The fact that Spanish and English mainstream and Latinx-themed content were offered in silos, rather than within the same channel or platform, was a major barrier to its growth and evolution. The introduction of Spanish-language content within ‘mainstream’ platforms, starting with shows like Narcos, La Casa De Papel, and others on Netflix, has made media companies rethink their Latinx strategies. We are excited to see what lies ahead.”

On the SVOD side, Latinx households subscribe to an average of 4.7 streaming services, an increase from 4.0 last year. Concomitantly, spending on streaming services among Latinx also grew dramatically. Latinx SVOD subscribers report spending an average of $70.7 in 2022 on subscriptions to streaming services, compared to just $48.83 in 2021 and $38.54 in 2020, the researchers wrote. 

On the AVOD side, YouTube and Peacock are the most-used free streaming services for Latinx TV content viewers. Notably, Peacock offers content not just from NBC’s family of mainstream networks, but also has a wide array of content from Telemundo, one of the two leading Spanish-language broadcasters in the U.S.

Despite the increase in Spanish-language content now available, almost half (45%) of Latinx TV content viewers find the quality of Spanish content to not be on par with the quality of English content. 

This is likely to change moving forward as media companies continue to invest in quality Latinx-themed and Spanish-language content, the report noted. 

For example, Peacock recently doubled down on its commitment to the Latinx market by announcing Tplus, a bilingual content hub. YouTube TV added Spanish-language plans for its subscribers. Meanwhile, Pantaya, the Spanish-language SVOD service whose popularity grew tremendously with the success of its original series El Juego de Las Llaves, was recently acquired by Spanish-language media powerhouse TelevisaUnivision.

The full FOCUS Latinx: State of Pay TV, OTT & SVOD 2022 report provides analysis of U.S. TV content viewers and antenna users. The survey was conducted in February-March 2022 in English and Spanish among 2,200 TV content viewers. Data have been weighted to ensure results are representative of the overall TV universe. The report is available in total market, FOCUS Latinx, FOCUS Black, and FOCUS Asian editions.

More information is available at https://www.horowitzresearch.com/ (opens in new tab).

Horowitz Research

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George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.