MVS to launch cut-rate pay TV in Mexico
Package to include 24-hour programming on 10 channels
Basic package, which will include 24 hours of programming a day on 10 original channels, is aimed at 15 million homes with television.
Mexico, with a population of 100 million and 20 million homes with television, has just 2.8 million pay TV subscribers, of whom roughly 600,000 receive MVS' microwave service.
Execs at MVS, privately owned by the Vargas Guajardo family, say the yet-to-be-named project will carry live soccer from Mexico's top division, Hollywood blockbusters before terrestrial rivals and original telenovelas thanks to alliances with foreign broadcasters, although no details have yet been released.
"This will quickly become the essential complement to terrestrial television given its wide coverage, diversity, program quality and accessible price for all socio-economic levels," said an MVS statement.
The monthly charge will be roughly 50 pesos ($5.50), well below Sky Mexico's cheapest package at $40, and just 20% of the average monthly pay TV fee of around $25.
But analysts expressed doubts. "I don't see how this will work," one told Daily Variety. "The only other thing like this in Latin America is Globo Cabo in Brazil with 15 channels. They charge around $12 a month and have increased penetration and high margins, but they don't carry any original programming or movies and have no sports, which is very expensive. I am very curious to see how MVS will make this viable."
