According to a new report by Dataxis, Netflix is losing market share as competition grows in Latin America. Ever since its Latin American launch in September 2011, the US OTT positioned itself as the clear market leader. Nevertheless, Claro Video has emerged as the only serious competitor, although this has happened in selected markets, especially in Mexico.
As the OTT universe began to mature and new players entered the market, Dataxis notes that Netflix’s market share of total Suscription Video On Demand (SVOD) accounts started to decline in Latin America, and that trend will remain until 2021, although Netflix will continue as leader in paid account amounts. This market share loss phenomenon was also observed in the US.
In this sense, HBO Go’s arrival in 2016 marked the beginning of a new stage of competition, as the media giant’s programming is strongly demanded by audiences. In addition, HBO brings a new business model, aimed at offering OTT services in partnerships with ISPs. In addition to America Movil, the other largest telco in the region, Telefonica, is also expanding its OTT services to other Latam countries.
In the context of a strong competition among OTT players offering movies and series, it is expected that smaller players, originally positioned as a complement to Netflix, will move towards vertical offers by genre, as it is already happening in the US with sports, documentaries and other niche streaming platforms.