Report: Latinos Love AVOD, Streaming Video

With 61 million people in the U.S., the Latino population is a major demographic group when it comes to media consumption. Latinos are spending less time watching TV in favor of streaming video, especially ad-supported VOD — the latter driven by the COVID-19 pandemic, according to new data from Penthera.

Indeed, 46% of U.S. Latinos prefer consuming ad-supported VOD, followed by pay-TV (20%), ad-supported subscription VOD (16%), SVOD (14%) and live video (5%), according to a survey of 500 Latinos ages 18-50.

“Our audience has grown [three times] since the pandemic began,” Natalia Borges, EVP of marketing at VIX, a division of Univision Communications offering AVOD content to U.S. Latinos and consumers in Latin America. “We believe that the pandemic merely accelerated trends around cord-cutting that we were already seeing.”

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Penthera found that mobile is the most popular (55%) device for daily streaming, followed by the connected TV (51%) and PC (22%). Interestingly, 87% of mobile streamers do so in the home, followed by 26% outside the home; 23% when on a trip; 21% while commuting and 13% at work.

Another 88% of panelists said they experienced streaming video frustrations. The most common distractions are videos taking too long to start up (47%), video re-buffering (44%), and advertisements stalling (36%).

Notably, 61% of respondents said that they did not feel represented in the streaming ads they see, with 42% saying the issue is that the products being advertised aren’t local. That lack of representation affected panelists, who said the issue is that the products being sold aren’t local (42%); the ad is a translated version of its English counterpart (32%); their native language isn’t used enough (29%); and the actors in the ads aren’t Latino (24%).

FlixLatino, a SVOD service focused on making Hispanic-created and Latino-based movies, series, documentaries and animation, aims to fill the void.

“We had been doubling our subscriber base year-over year and we expected that to continue in 2020,” said Luis Guillermo Villanueva, the company’s COO. “With the pandemic, we saw our subscriber base triple last year. More Hispanic people in the U.S. were viewing more content.”

NBCUniversal, Telemundo Partner on Streaming Content Studio

NBCUniversal Telemundo Enterprises is creating Telemundo Streaming Studios, which it bills as the first-ever Spanish-language studio in Hispanic media exclusively dedicated to serving the growing Latino streaming audiences in the United States and around the world.

Following the creation of original titles “El Señor de los Cielos,” “La Reina del Sur,” “El Recluso,” “No Te Puedes Esconder,” “Jugar con Fuego” and, most recently, “Dime Quien Soy,” “100 Dias para Enamorarnos,” “Falsa Identidad” and “Mariposa de Barrio,” Telemundo is expanding production capabilities to create original scripted content exclusively for direct-to-consumer platforms. In addition to developing and producing its own IP, the new studio will offer production services to third-party direct-to-consumer platforms.

“Latinos are pacesetters of cultural and technological change,” Beau Ferrari, chairman, NBCUniversal Telemundo Enterprises, said in a statement.  “We are … super serving the Latinos of today with the best original, premium and culturally relevant content across all platforms.”

According to Nielsen, driven by streaming video consumption, Hispanics spend more time per day on video through TV-connected devices and video-focused app usage compared to “total adults.” Hispanics are often 50% or more of the average audience to shows that center on Hispanic characters and stories, which is a remarkable over index considering they are roughly 20% of the population.

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Based out of Miami, Telemundo Streaming Studios will be housed under Telemundo Global Studios, led by Marcos Santana, who will continue to oversee all original scripted productions for the network, including international co-productions. The new production unit launches with more than 35 projects in development and in production, including the dramedy “Armas de Mujer” for Peacock, “El Marginal” seasons four and five for Netflix, as well as the remake of “Historia de un Clan,” upcoming seasons of “El Recluso,” a new version of “El Diario de un Gigolo” and the action-packed series “El Immortal.”

“As pioneers in the production of scripted Spanish-language content for U.S. Hispanics, we have a wide range of experience to invest in producing the best scripted content for the growing number of Latinos who consume their favorite shows across streaming platforms,” Santana said in a statement. “With these new studios, Telemundo will be the go-to source for Latino streaming content in the US and around the world.”