Room for Growth: Activating U.S. Hispanic Video Audiences
Altman Solon is the largest global strategy consulting firm exclusively working in the TMT sectors. Our team surveyed over 400 Hispanic-identifying consumers and small business owners to better understand the media needs of this cohort and their receptivity to emerging media experiences. This insight explores how media companies can build successful go-to-market strategies for Hispanic consumers.
In the United States, the Hispanic population, defined as people from a Spanish-speaking culture, is over 62 million. This diverse demographic is the youngest ethnic group in the country and has a reputation for being early adopters of emerging technology. Findings show that Hispanic consumers over-index on streaming subscriptions compared to the general population, but are less satisfied with available content. Media companies and marketers have an opportunity to experiment with emerging media experiences, something that Hispanic consumers are more open to trying. Engaging and activating Hispanic consumers means special attention should be paid to their unique preferences and how they want to engage with content.
Hispanic consumers are higher adopters of streaming but remain unsatisfied with the content offered
Hispanic consumers subscribe to an average of 3.9 streaming services (including paid and free services), compared to 3.2 streaming services among the non-Hispanic population. In terms of preferred channels, Hispanic consumers show a stronger affinity for Max (formerly HBO Max), Disney+, and ESPN+ compared to the non-Hispanic group.
Services Used Among Streaming Respondents
% Hispanic & non-Hispanic respondents who indicated they use streaming services
When it comes to content, Hispanic respondents express greater interest in sports, where they over-index non-Hispanics on the top three American sports: football, baseball, and basketball. More niche sports with a greater appeal in the U.S., notably boxing and both Latin American and Spanish soccer leagues, resonate disproportionally with American Hispanic consumers. Outside of sports, content from respondents’ countries of origin also appeals to this audience.
Despite subscribing to more streaming services than their non-Hispanic counterparts, some 60% of Hispanic consumers say they are unsatisfied with the content that is offered. According to interviews with senior market researchers in the space, Hispanic audiences feel that content offered doesn’t resonate with their specific preferences. Our survey data confirms this: Hispanic audiences are interested in seeing more “classic” content from their countries of origin as well as sports content. Media and streaming companies can further activate and engage Hispanic consumers by developing and marketing content across these subject matters. In a time when streaming behemoths are losing subscribers, developing niche content that resonates with an audience more inclined to subscribe to streaming and Pay TV should be explored.
VR/AR, second-screens, and shoppable TV are growth areas among Hispanic respondents
Emerging Media Interest, 18 to 34 year olds
% Hispanic & non-Hispanic respondents
The survey delved into six ”emerging” media consumption experiences to better gauge the interest of Hispanic consumers and understand revenue generation opportunities for media companies and advertisers. Emerging media experiences include: shoppable TV; watch parties; interactive content and personalized stories; virtual reality (VR) and augmented reality (AR); live interactive events; and second-screen experiences. Overall, Hispanic consumers skew more open to testing emerging media experiences compared to the control group, with 71% of Hispanic consumers interested in trying one or more emerging media experiences as opposed to 61% of non-Hispanic consumers.
The following emerging media experiences appealed particularly to Hispanic audiences:
Interactive Content & Personalized Stories
Interest by presence of children, % Hispanic respondents
Among the six emerging media experiences, VR/AR experiences rank highest, appealing to 34% of Hispanic consumers. These experiences, which require purchasing special headsets, are more attractive among respondents with higher incomes- including 43% of Hispanic respondents earning more than $100,000 a year. Of Hispanic respondents interested in VR/AR, 64% cite a desire to “feel immersed in a digital world,” suggesting that recent marketing efforts by headset manufacturers have had an impact on potential consumers. While VR/AR technology was initially embraced by the gaming industry, it has penetrated broadcast media, where these experiences are used to increase fan engagement. Emerging content partnerships, like the one between Disney and Apple, which will involve Disney creating exclusive sports content on ESPN+ for the Vision Pro headset, signal future mainstream adoption. Media companies and advertisers should look for ways to reach Hispanic consumers through partnering with headset manufacturers for tailored VR/AR experiences.
Second Screen Experience Interest by Income
% Hispanic respondents
Ranking second to VR/AR, second-screen experiences appeal to 27% of Hispanic respondents (four points higher than non-Hispanic respondents). Second-screen experiences involve additional content and interactive features that can be consumed on a second-screen (mobile, tablet) while watching TV. Like VR/AR, second-screen experiences require multiple devices and resonate more among Hispanic respondents with higher incomes. These experiences are particularly impactful during live events. Recent data shows that American audiences have embraced second-screens when watching television. Emerging tools like Arena allow media companies to launch second-screen campaigns and increase engagement, viewership, and cross-sell multiplatform ad campaigns.
Shoppable TV Willingness
% Hispanic & non-Hispanic respondents
Finally, shoppable TV, where viewers can directly purchase what is on screen, appeals slightly more to Hispanic consumers than the non-Hispanic group. Hispanic consumers between ages 18 and 34 are the most interested, suggesting that this experience could gain traction as Generation Z and Millennials establish their careers and achieve financial independence. Among Hispanic consumers who are interested in shoppable television, 63% see it as a convenient way to make purchases, as opposed to only 35% of non-Hispanic consumers. However, there remains discomfort around saving credit card information. Media companies should communicate their data safety measures for shoppable television experiences. Interestingly, shoppable TV has the potential to win over reluctant consumers: among Hispanic consumers who are not interested in shoppable TV, 47% say they would be open to trying it if the brands on offer are well-known and trusted.
Appealing to Hispanic consumers
To attract and engage Hispanic consumers, media companies should adopt a targeted and inclusive approach. We recommend the following:
- Double down on content: Invest in targeted content that resonates with Hispanic audiences, periodically assessing consumer sentiment to understand content wants and needs.
- Look to emerging media: Experimenting with AR/VR and other emerging media experiences can drive subscriber activation and increase advertiser engagement.
- Go deeper: Media companies should invest in a greater understanding of Hispanic audiences, paying attention to what and how they want to engage with content.
As media companies search for ways to address declining subscriptions, engaging Hispanic consumers can offer an opportunity to test emerging media trends. Focusing on content offerings that appeal to them in specific verticals and utilizing thoughtfully executed emerging media experiences can create loyalty and drive revenues.
About the Analysis
In July 2023, Altman Solon explored the connectivity-driven telecom and media needs of Hispanic consumers and Hispanic-owned SMBs by surveying over 400 Hispanic-identifying consumers and small business owners in the United States across a set of diverse customer attributes. The survey considered variables like generational status, access to financial products, ethnicity, and preferred language. Survey results were compared to a representative control group.
Complete the form below to receive the full report and connect with an Altman Solon media industry expert to discuss what this means for your organization.
Leadership & Oversight
Altman Solon is a trusted advisor for leading media companies on video subscriber growth strategies, content acquisition and bundling, plan tiering, pricing, and audience activation. Leveraging data and industry expertise, we help media companies anticipate and invest in the evolving nexus of audience consumption, content, and media technology.