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Digital TV Research: Netflix to Lose Latin America Market Share as U.S. Competitors Arrive

Netflix was one of the first subscription streaming services to launch operations in Latin America in 2011, but now its market reach there is under siege by incoming U.S. streaming competitors.

Data analysis from Digital TV Research suggests that Latin American SVOD revenue will reach $8.54 billion by 2027, up from $5.01 billion in 2021. Yet, Netflix will account for 41% of the 2027 total, down from 72% in 2021. Netflix’s revenue will peak at $3.73 billion in 2023.

 

 

Indeed, seven U.S.-based platforms (Netflix, Prime Video, Disney+, Star+, Paramount+, Apple TV+ and HBO Max) will account for 90% of the region’s paying SVOD subscriptions by end-2027.

“Netflix will introduce AVOD-SVOD tiers [one for Brazil and another pan-regional one for the Spanish-speaking countries] in 2024, with SVOD revenue and ARPUs falling slowly as some subscribers convert to cheaper packages,” analyst Simon Murray said in a statement.

Murray contends Disney+ is likely to introduce similar ad-supported subscription tiers in 2024. The platform is expected to follow its U.S. example by converting its current subscription tier to AVOD-SVOD and charging more for SVOD-only. This will push up ARPU.

Latin America will have 139 million gross SVOD subscriptions by 2027: up from 75 million at end-2021.

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