The Challenges and Opportunities of OTT in Brazil

A Unique and Expanding Market

Brazil stands out in LATAM due to its Portuguese-speaking population and distinct media consumption habits. Brazilian viewers spend a substantial share of their time watching online video, particularly on mobile devices, making OTT services increasingly relevant. The number of pay TV subscribers is high, but still represents only a portion of the population, indicating a large untapped audience for OTT services.

Main Challenges for OTT Providers

1. Intense Competition
The Brazilian streaming ecosystem is highly competitive, with global leaders like Netflix and Amazon Prime Video competing with local platforms such as Globoplay. This environment has driven up marketing and content costs as platforms strive to differentiate their offerings.

2. Regulatory Compliance
OTT platforms operating in Brazil must adhere to strict data protection regulations, such as the General Data Protection Law (LGPD), which imposes high compliance costs and requires sophisticated data management practices.

3. Content Rights and Local Broadcasters
Access to popular local content is a challenge, as major broadcasters hold many key rights. This limits the ability of new entrants to offer compelling localized catalogues without negotiating complex agreements.

4. Technology and User Experience
Many local OTT providers have built proprietary technology stacks, which can be slow to update. Platforms that lag in performance and streaming quality risk losing viewers to competitors with more advanced delivery infrastructure.

 Opportunities Ahead

1. Tech Partnerships
Rather than building OTT solutions from scratch, many providers are turning to technology partners that can deliver comprehensive OTT stacks, enabling faster launch times and improved service quality.

2. Increasing Video Demand
With Brazilian audiences showing high engagement with online video, especially on mobile, there is a robust opportunity for both international and local streaming services that understand local preferences and content tastes.

3. Cross-Industry Expansion
OTT applies beyond entertainment — into live events, education, sports, and enterprise communications. Companies that build multi-device, flexible offerings can attract broader audience segments.