Mexican telecommunications tycoon and billionaire Carlos Slim’s America Movil SAB has shown interest in launching an online service for movies and television shows in Mexico. The company is banned from using its network to offer traditional TV in Mexico, and is waiting on a regulatory ruling to decide whether a streaming-video service would be in violation of the ban.
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America Movil would use distribution unit DLC Inc. to offer movies and shows as it does in Argentina and Uruguay. Slim has so far been unsuccessful in obtaining a TV license, and America Movil is not allowed to offer video over its landline network under the terms of its telecommunications license.
The Mexican government argues that the company hasn’t met requirements in its network connections with rivals. If the ruling is in favor of Slim’s company to stream videos online, then this move could pose a threat to Netflix , which has recently pushed its streaming services toward international customers in Latin America, particularly Mexico, and the Caribbean.
Given Netflix’s recent split from Starz , expanding into new markets could help boost declining sales. However, Netflix may now have to distinguish itself from international rivals like American Movil if it is going to be competitive in new markets.
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- America Movil