Market Insight

Mexico physical video forecasts have been revised

October 23, 2015  | Subscribers Only

Laura Aguilera Laura Aguilera Senior Research Analyst, Service Providers & Platforms

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  • The overall physical market declines 23.6% in 2015 to $ 2.15 billion pesos or $162 million.
  • Blu-ray Disc market share grows to 34% over the forecast period, up from 29% in 2014.

IHS has updated physical video DVD and Blu-ray Disc (BD) historical numbers and forecasts to 2019 on the basis of industry feedback. 

In 2015, total physical video sales in Mexico are projected to fall to 16.7 million units, an annual decline of 24.9% compared to 2014. Total consumer spending will see less of a decline, 21.9%, to $1.4 billion pesos ($105.1 million). This is primarily a result of total average unit prices for a physical disc increasing as Blu-ray Disc share grows. 

Between 2015 and 2019 unit sales for physical video will decline 27% every year on average, resulting in 2019 unit sales of 4.5 million. Consumer spending on all video discs will similarly decline, to $334.2 million pesos in 2019.

Our analysis

Major market declines in 2014 triggered by Mexican federal sales tax increase that took effect Jan. 1st, 2014, rose from 11% to 16%. This has in turn caused Mexican consumers to limit retail purchases to essential necessities. Uncertainties among consumers have dragged consumption habits down and are reflected in our forecast. 

Since popularity of SVOD services such as Netflix and Claro Video in Mexico, retail sales of catalogue product have shrunk considerably in the last two years. This segment in 2012 accounted for 40% of physical retail disc sales but will only account for 5% in 2019. Other factors also driving declines include a decrease in rental outlets, and fewer distributors in the market.

Research by Market
Media & Advertising
Digital Media Video
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