April 1, 2019
On July 11, 2011 Netflix announced plans to expand service into South America spearheaded by Brazil. The SVOD pioneer at the time had 23 million subscribers in the United States and Canada – the latter Netflix’s first foreign expansion.
Leapfrog to the present and Latin America is forecast to reach more than 51 million SVOD subs by 2024 – about double the 27.1 million recorded at the end of 2018, according to new data from Digital TV Research.
The top six regional platforms – driven by Netflix – will account for 85% of the region’s paying SVOD subscribers by end-2024.
Netflix is projected to reach 26.3 million paying subscribers in 2024 – or about 50% of the region’s total – but down from 66% market share at the end of last year.
Simon Murray, principal Analyst at Digital TV Research, said Netflix’s declining market share in Latin America is due to the rise in ad-supported VOD and subsidized SVOD platforms in the region.
“Several mobile and pay TV operators provide free and limited SVOD platforms to their top paying subscribers. This stifles pay SVOD take-up,” Murray said in a statement.
SVOD subscription revenue will drive overall over-the-top video revenue across 19 countries with $6 billion of the projected $8.25 billion in revenue through 2024. The latter up 147% from revenue of $3.33 billion in 2018.
Brazil will remain the SVOD revenue leader by 2024 – supplying 40% of the regional total. Mexico will provide another 24%. Combined, Brazil and Mexico will account for 66% of the region’s SVOD revenue by 2024.