Though Netflix increased the cost of its subscriptions worldwide, the price hikes didn't have an equal effect everywhere. While much has been written about the company’s loss of US customers in Q2 due to costlier subscriptions, eMarketer estimates that Netflix’s viewership growth in Latin America will remain strong.
The company forecasts that this year the Netflix audience in Latin America will increase by 26.4% to 70.1 million users. As the streaming giant continues to offer more local content, this number is expected to rise to 88.2 million by 2023, when 13.4% of individuals in the region will regularly watch Netflix.
A wide variety of local-language and international content, along with a user-friendly interface and affordable price point, make Netflix a popular choice for internet users in Latin America. Instead of curating TV shows or movies like other competitors in the region, Netflix offers original content that resonates with audiences—this is partly why the company has started to produce and license a large amount of local content in Latin America to convert consumers into subscribers.
In January 2019, Netflix announced it would raise its prices by 13% to 18% for its US subscribers, making it one of the largest price hikes in the company’s history. Similarly in Latin America, Netflix users saw their monthly subscription costs increase, regardless of whether they were billed in US dollars or their local currency. Despite this, eMarketer expects continued growth in the regional user base overall.
VIEWERSHIP AND PRICE BY COUNTRY
Netflix viewership will be highest in Brazil this year, with 28.7 million monthly viewers, followed by Mexico (19.3 million). Argentina will have far fewer monthly Netflix viewers (5.9 million), with an audience one-fifth the size of Brazil’s and nearly one-third the size of Mexico’s.
Countries like Argentina ($5.19), Colombia ($5.71) and Brazil ($5.99) have some of the cheapest monthly subscription fees worldwide for the basic plan, compared with the $8.99 that subscribers in Costa Rica, Panama, Uruguay—and even the US—pay monthly. Netflix’s decision to localize its prices in selected markets is part of a broader strategy to best position—and grow—its product offering.
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