The SVOD OTT market in Latin America accelerated its growth and by 2025 it is expected to reach 131 million paid accounts in service, more than three times its volume in 2019. This expansion will dilute the broad dominance of Netflix but the platform should not lose its leadership. The game will remain concentrated in a few hands: in the forecast, Netflix, Amazon Prime Video and Disney+ hold 80% of the accounts in 2025.
The arrival of new international platforms should dramatically expand the SVOD OTT market. Dataxis estimates that by 2025, the average number of paid subscriptions per household will reach 2.25.
The textbook for launching Latin American OTT shows the importance of developing strategic alliances. The partners help with marketing and mainly with billing. And 2020 presented a good period climate to fulfill that premise. Today, every access provider in Latin America seeks to integrate OTT platforms. “In the style of a supermarket,” they repeat. Because a supermarket is not just shelves. It is also one brand, recognized by the consumer, creating a universe of other brands.
Everyone wants something with Netflix. Either with promotions or with more operational actions such as billing, integration in the set-top-box or in the search engine. In 2020 some players even decided to offer broadband packages with free subscriptions to Netflix. In this perspective, the competition is prompted to grant access to Netflix; even if it means subsidizing it. Netflix is placed in the center and others must find the best way to complement it. By content or by price.
Netflix’s share by number of accounts should fall from 78% in 2019 to 44% in 2025. It will continue to grow but market growth will exceed it. In 2020, Prime Video consolidated its presence while Disney+ showed its first cards. In both cases they exhibited a high media profile, their own content and the decision to set their prices below those of Netflix. During 2020, Prime Video wove a network of alliances focused on access providers. Disney+ decided to expand the universe of classic OTT allies and in some countries it added banks, online marketplaces and credit cards. In a low banking environment, billing management becomes a key element for platforms.