VOD develops fast in South America

'A Harmful Method''The Tree of Life''Elena''Drive'MADRID -- Latin America's VOD landscape is quickly attaining definition.In September, Netflix released a streaming-only service through the region. Argentina's two large telcos, Telefonica p Argentina and Telecom Argentina, also provide folded out VOD services.In South america, VOD is provided by satcaster Sky and cabler Internet. Also in South america, NetMovies, Latin America's greatest local Internet VOD operator, streams 4,000 films and series, getting cut its initial U.S. studio deal, with Disney, in September.For independent films, worldwide online VOD player Mubi works throughout South America Mexico has Canana OnDemand, Argentina has website Comunidad Zoom.Finally month's Ventana Sur, Spain's Filmin, an online film/TV VOD company, inked an offer with Colombia distrib Cineplex to build up something for The spanish language-speaking South America Cineplex will lead content and technology towards the Colombia Filmin service, states Filmin Boss Juan Carlos Tous.Cineplex's large 2012 releases -- "Tree of Existence," "Drive," "A Harmful Method" and "Elena" -- is going to be among photos on the internet service, states Cineplex prexy Elba McAllister. The Colombia launch will occur within the first half 2012 with 1,000 game titles, 300 from Colombia along with other Latin American nations, the relaxation worldwide, mostly Europe-acquired.Dealing with local territory partners, Filmin aims to grow throughout The spanish language-speaking South America.The Filmin-Cineplex alliance highlights possibilities for VOD in the area. Presently, Latin American online TV/video subscription revenues are minimal: 2010 saw just $a million from Argentina, $4 million from South america and $3 million from Mexico, based on Digital TV Research.Indie VOD in South America "continues to be in a diaper stage of growth, but it's growing," states Canana partner Pablo Cruz, who adds that Canana's VOD discharge of its TV series "Soy tu fan" solicited more buys than the usual normal studio release.But Canana OnDemand is transported on Cablevision, Mexico City's dominant cabler. Online, straight-to-PC services could face a harder fight. In Mexico, for example, people don't wish to hand out charge card particulars on the internet, Cruz states.For South America generally, Filmin's challenges are quite different from individuals of Netflix: Piracy is high, broadband transmission is low -- at 36% for Argentina, 24% for South america and 35% for Mexico this year, based on Screen Digest.Yet pay TV reaches under 25% of Latin American homes versus. 90% within the U.S., so VOD is way better situated to provide pay TV a run because of its money in the area, experts say.VOD can also be crucial in a very concentrated Latin American cinema exhibition market full of multiplexes that, even much more compared to Europe, is centered by Hollywood blockbusters."VOD," McAllister states, "offers huge possibilities for that distribution of Latin American and independent films."Marcelo Cajueiro, Charles Newbery and James Youthful led for this report. Contact the range newsroom at news@variety.com