Netflix is forecast to see its share of Latin American SVOD revenues fall from 72% last year to 41% in 2027.
According to the Latin America SVOD Forecasts report from Digital TV Research, they will peak at $3.73 billion in 2023. Meanwhile, total Latin American SVOD revenues will reach $8.54 billion by 2027, up from $5.01 billion in 2021.
Commenting on the report, Simon Murray, Principal Analyst at Digital TV Research, said: “Netflix will introduce AVOD-SVOD tiers [one for Brazil and another pan-regional one for the Spanish-speaking countries] in 2024, with SVOD revenues and ARPUs falling slowly as some subscribers convert to cheaper packages”.
Disney+ is likely to introduce similar tiers in 2024. The platform is expected to follow its US 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 the end of last year.
Seven US-based platforms (Netflix, Amazon Prime Video, Disney+, Star+, Paramount+, Apple TV+ and HBO) will account for 90% of the region’s paying SVOD subscriptions by the end of 2027.
