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)
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)
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.














