David Purdy: Our cable business is healthy and thriving, but we are also adding OTT and FAST revenue, which is wonderful
In the last five years, Stingray has expanded its customer base to include two categories: over-the-top (OTT) and automotive, in addition to the traditional pay TV, satellite, and IP TV. After this move, the company’s revenues come 50% from subscribers and the other half from OTT and FAST.
“We are seeing that our partners – Samsung, LG, Amazon, and other top players like Google – are thinking of entering Latin America. So we are having relevant conversations with Latin American and US Hispanic leaders for the connected TV (CTV) players -Samsung and LG- and the OTT players -Google and Amazon-. This is important for us to grow our business. Our cable business is healthy and thriving, but we are also adding OTT and FAST revenue, which is wonderful,” said David Purdy, CRO of Stingray.
Regarding the automotive category, the company has Tesla as its largest client. Stingray’s Karaoke is built-in Tesla vehicles in China, Japan, and Korea. “It has been a great engine of growth,” he said, adding that they have just announced a similar agreement with the Chinese electric vehicle manufacturer BYD; Latin America is one of its largest markets.
“We are doing many businesses with them, and BYD is focusing on Latin America, APAC, and other emerging markets. Each BYD vehicle comes equipped with a large screen for karaoke. Cars are becoming entertainment centers. We are very excited about this business,” he said.
Another growth driver for Stingray in Latin America is providing music to public venues such as bars, hotels, pharmacies, and markets. “We have expanded our team in Mexico to focus on music; we will be doing advertising soon. We have perfected it in the US and Canada (in-store audio advertising). When you are in a store or pharmacy, you can listen to ads promoting products and services available in the store. This business is growing, and we are excited for our team in Mexico,” he said.
AMAZON PRIME CHANNELS AND FAST PLATFORMS
Purdy mentioned they are increasing their relationship with Amazon Prime Channels, with whom they have launched in Canada, Mexico, the US, most of Europe, and Brazil. “Amazon Prime Channels is now expanding to new markets within Latin America. Soon, we will be announcing territories such as Chile, Argentina, and Colombia with them. We think these are great markets, and our product will do very well there.”
Regarding FAST platforms, they will soon be announcing new channel launches with LG, Samsung, and Pluto TV. “This segment has been fast growing for us, particularly in the US where CPMs and the business are well established. In Latin America, it is a little slower, but we are starting to see people focusing on this. There are many discussions with the great players,” he said.
According to Purdy, 2024 will see a lot of growth for FAST in the region, and he estimates a great takeoff of this segment by 2025.
NATPE AND CONTENT AMERICAS
Regarding Natpe and Content Americas 2024, he noted they had large meetings in both shows, but they understand the financial challenge of spending two weeks in two markets in a row.
“Ideally both shows should reach an agreement, perhaps in the same week, with a slightly different approach. Right now, the difference seems to be that Content Americas is focused on South America and Latin America, while Natpe is more on North America,” he concluded.
