Globo, the Brazilian audiovisual entertainment giant, will increase its investment in content by 50% by 2022, as announced by Manuel Belmar, the company’s Chief Financial Officer, in an interview with the local newspaper Valor Economico. In addition, the Group representative pointed out that the brand could close the year with significant growth in its financial results.
First, Belmar stated that by the end of 2021, the company expects total revenues to increase between 17% and 19%, mainly due to a growth in advertising revenues, which represents 60% of total revenues, which approximates that it will be between 22% and 24%. Finally, with regard to content revenue, which accounts for the remaining 40%, the group expects an increase of just 8%, hence its interest in increasing its investment.
However, Globoplay, the brand’s streaming service, recorded a 70% growth in sales during the first nine months of the year, and therefore a 27% increase in its subscriber base. According to Globo, the poor performance of content revenues represents a constant decline in the pay TV user base in Brazil, which is losing more and more customers to other audiovisual entertainment services.