Advanced Television

Forecast: Netflix to lose LatAm SVoD revenues

August 25, 2022

Latin American SVoD revenues will reach $8.54 billion (€8.85bn) by 2027; up from $5.01 billion in 2021, according to the Latin America SVOD Forecasts report from analyst firm Digital TV Research. Netflix is forecast to account for 41 per cent of the 2027 total, down from 72 per cent in 2021. Netflix’s revenues will peak at $3.73 billion in 2023.

“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,” advises Simon Murray, Principal Analyst at Digital TV Research.

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 end-2021. Seven US-based platforms (Netflix, Prime Video, Disney+, Star+, Paramount+, Apple TV+ and HBO) will account for 90 per cent of the region’s paying SVoD subscriptions by end-2027.

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