Argentina Internet Penetration

LCD sales may taper off post-Mundial, but WiFi growth means more broadband accounts in Argentina.

Sales of LCD TV’s in Argentina are currently up 150% over last year, but many analysts say those numbers will taper off once the World Cup is over. The growth of new Internet subscribers, however, should continue its upward trajectory as more Argentine residents and businesses seek broadband access to online content. According to infobae.com, over 700,000 new residential users signed up for Internet service between March 2009 and March 2010 raising the number of online households to 4.1 million. During the same period, the number of Argentine businesses adding Internet service increased 48% and the number of broadband accounts grew 58%. One number moving in the opposite direction is the number of e-mails sent, as Argentines sent 7.7% fewer correos electrónicos compared to one year ago. This statistic partially reflects the growing preference among Argentines—individuals and businesses alike—for communicating via social media platforms like Facebook, Twitter and blogs. ADSL accounts for 62% of Argentine broadband connections, and cable modems represent another 24% of users. As we’ve noted previously, the rapid growth and popularity of WiFi has prompted the rush to broadband in Buenos Aires and other major cities in Argentina. The most recent rankings of global Internet usage show 49% of Argentines have Internet access compared to 50% of Chileans, and 36% of Brazilians. (Full Story in Spanish)

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InvestBA Privada

Extra, extra! The first issue of our premium content e-newsletter, InvestBA Privada, arrives on Friday.

After several months of planning and design, we’re very pleased to announce the arrival of our premium content e-newsletter, InvestBA Privada. While the blog often gravitates toward current events, Privada gives our readers a much closer look at macroeconomic trends in Argentina and Uruguay, detailed investment opportunities and general lifestyle topics like golf, wine and polo. In the July issue, for example, we profile commercial properties from Mendoza to Montevideo, feature some very unique Argentine wines and size-up the Argentine and Uruguayan teams preparing for this month’s World Cup. We also profile a beautiful new luxury golf development in Buenos Aires and several historic properties in Montevideo’s Ciudad Vieja, recently featured by NuWire Investor. Future Privadas will feature cultural, legal and financial advice, as well as one-on-one interviews with local business and design professionals. If you would like to receive Privada, just click here. While you’re signing up, be sure to tell us what type of content you would like to see in future editions. And because we hate spam (el spam here in Argentina) as much as you do, your information will not be shared with any third parties. The only item you receive from us will be the bi-monthly Privada. ¡Disfrútalo!

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EA Sports FIFA 2010

EA Sports' World Cup simulation has Uruguay out in Group Play and Argentina losing in the Semis.

While the 2010 World Cup doesn’t officially start until June 11th, U.S. video game giant EA SPORTS is already declaring Spain the winner. In a clever PR campaign, not likely to sit well with local fans of Argentina and Uruguay, EA ran a simulation of the world’s largest sporting event using its popular 2010 FIFA World Cup South Africa video game. The simulation had Uruguay eliminated in Group Play after a 1-1 tie with France and back-to-back losses to South Africa and Mexico. Argentina fared much better in the simulation by winning Group B with three consecutive victories over Nigeria, Korea and Greece. However, convincing wins over Mexico and Germany were followed by a 2-1 loss to Spain in the Semifinal round. The simulation had Spain advancing to and winning the Final over Brazil by a score of 3-1. We can only hope this EA prediction is a curse akin to the kiss of death for college football teams featured on the cover of Sports Illustrated or NCAA basketball teams getting the net-cutting nod from Dick Vitale. For Argentina’s fans, the only bright side of losing the World Cup—either in a video game or the actual event—is being spared the sight of Diego Maradona running down 9 de Julio Avenue in his birthday suit. Video game or not, that’s one visual we can all do without. (Full story)

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Starbucks Argentina on Facebook

Companies like Starbucks Argentina are taking the bold first steps in BA business social media.

While Facebook, Twitter and corporate blogs are de riguer social media tools for U.S. brands, the phenomenon is a relatively nascent one in Argentina according to an in-depth article by Florencia Radici for Cronista. It’s hard to pinpoint whether the Web 2.0 reluctance is motivated by fear of losing control of the message or the heavily flawed assumption that what they, Compañía X, have to say is more important than what consumers of  Compañía X have to say and share with fellow users and potential Compañía X converts. Yet major Argentine brands with hundreds of outlets and millions of customers either have no social media exposure or only a handful of followers on sites like Twitter. In fact, Argentina doesn’t even show up in Twitter’s global ranking on Alexa, while other Latin American countries account for a sizable percentage of the microblog’s traffic: Brazil (3.2%), Mexico (1.5%) and Venezuela (0.7%…thanks to El Loco Chávez, the Ashton Kutcher of Caracas.) Fortunately Radici says some BA companies are biting the social bala and engaging with customers via blogs and social networks. Many of these companies like Starbucks Argentina, Officenet Staples and IBM have U.S. ties and managers previously baptized in the waters of social media. Despite a slow start, Radici says BA companies are starting to warm to the idea of online customer engagement, and she points to two recent examples of BA2.0 brilliance include Nike runners twittering in the October 10K and Park Hyatt guests twittering with the concierge. (Full story in Spanish)

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batigol-directv

BatiGol & DirecTV: Legendary striker Gabriel Batistuta promotes DirecTV's World Cup coverage.

Channel surfing in many parts of Latin America is often referred to as “zapping.” If yesterday’s quarterly earnings release is any indication, subscribers across the region—especially in Argentina and Brazil—are “zapping” their local cable provider in favor of DIRECTV (NASDAQ: DTV). The California-based satellite television provider reported double-digit growth in revenue ($5.6 billion) and free cash flow ($1.03 billion), and record subscriber growth in Latin America played a critical role. The Company added a record 221,000 net new LatAm subscribers in the first quarter of 2010 “primarily due to strong growth in Brazil, Colombia and Argentina” raising the total number of regional subscribers to over 7 million. New subscriber growth has been aided by an aggressive regional marketing campaign promoting DIRECTV service and HD picture quality for the upcoming World Cup. The Company offers Latin consumers a variety of packages including bundled Internet and local calling services starting around US$50 per month while non-HD, basic packages cost closer to $30/month. Average monthly revenue per subscriber in Latin America is $55 compared to $85 in the U.S. With only 35 days until the World Cup, it’s likely DIRECTV will post strong Latin American subscriber growth this quarter as well, especially in Argentina, Brazil and the other five Latin countries sending teams to Johannesburg. And even though Colombia didn’t qualify this year, odds are those Caracol telenovela actresses look even better in HD too.

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