As the streaming ecosystem evolves and Hispanic audiences continue to grow, the Spanish-language television landscape is transforming dramatically.
According to the FOCUS Latinx: State of Pay TV, OTT & SVOD 2022 report, seven in 10 Hispanic TV content viewers watch Spanish-language programming.
That’s up 11% from last year. Meanwhile, two-thirds watch international content, an increasing amount of which is accessed via SVOD (subscription) and AVOD (free) streaming services.
And, with more Spanish-language and Latinx-themed SVOD and AVOD content and services available, Hispanics households—who have been among the most loyal to MVPD services—are now as likely to have similar penetrations of MVPD services compared to the total market, at 52% and 51% respectively.
Today, the share of Hispanic TV content viewers who rely only on streaming has continued its upward trajectory: 38% of Hispanic-only consumers subscribe to streaming services and not to an MVPD.
Latinx Overindexing for SVODs
In fact, the study shows that Hispanic TV content viewers are over-index for subscribing to SVODs and using AVODs compared to the total market. This is due, in part, to the fact that these households want access to both Spanish/Hispanic-themed and English language mainstream content.
On the SVOD side, Hispanic households subscribe to an average of 4.7 streaming services, an increase from 4.0 last year. Concomitantly, spending on streaming services among Hispanic also grew dramatically. Hispanic 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.
On the AVOD side, YouTube and Peacock are the most-used free streaming services for Hispanic 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.
Spanish-Language Content ‘not on par’ with English
Despite the increase in Spanish-language content now available, almost half (45%) of Hispanic 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 Hispanic-themed and Spanish-language content.
For example, Peacock recently doubled down on its commitment to the Hispanic 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.
“We have always been bullish about the Spanish-language and Latinx-themed content space, but until recently, this audience was underserved and presented an opportunity that was not being fully realized,” notes Adriana Waterston, chief revenue officer and the insights and 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.”
It is Hispanic Market Overview‘s editorial policy to refrain from the term “Latinx” when describing the U.S. Hispanic/Latino market and consumer demographic, as it is a largely unaccepted term among marketers and advertisers. “Latinx” was created in recent years to eliminate gender-based verbiage in the Spanish language.
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.