Homebound consumers worldwide tapped virtual channels to conduct their grocery and retail shopping or to stream movies, TV and music throughout the pandemic, leading to a boom in virtual streaming and subscription figures. Latin America has seen especially strong growth within this space, with the region now one of the fastest-growing areas for virtual subscription services globally.
Streaming platforms such as Netflix and Disney+ have taken steps to ensure their place in the Latin American virtual subscription economy as it expands, but this means such companies must fight against a rising number of competing platforms to hold the attention of the region’s consumers. Providing a convenient, seamless experience for everything from onboarding to payments is therefore becoming critically important for such services as they seek to stay competitive — meaning they must keep pace with developments in Latin America’s digital payments ecosystem as they continue to shift.
In the latest Digitizing Payments In Latin America Playbook, PYMNTS analyzes the growth of the Latin American subscription and reoccurring payments economy. It also examines how streaming and subscription services can meet consumers’ shifting payment expectations and needs to increase engagement and loyalty as they move to establish a lasting presence in the region.
Around the Latin American Payments Space
Rising internet and smartphone penetration are helping to increase Latin American streaming and subscriptions, especially for virtual media such as music. For example, subscriptions for music and audio streaming platforms including Spotify, Apple Music and Google Play within Mexico expanded by 5% in the first half of 2021, representing 13 million new subscriptions total.
Mexicans are also accessing these platforms more and more frequently, with the average subscriber streaming music or other audio for six days per week. The competition to capture the attention and subsequent loyalty of potential subscribers within the country is therefore growing fiercer, making it imperative for streaming services to provide easy, seamless experiences.
Video streaming platforms have also become part of Latin American consumers’ daily routines: One recent study found 94% of Mexican consumers now utilize such platforms, for example, with 77% of that figure stating they do so daily. Subscription costs for virtual streaming services are set to rise within Latin America, however — something that could cause many consumers to break this daily habit or abandon streaming services entirely.
Keeping costs low while also providing a convenient experience for potential subscribers is therefore critically important for streaming services wishing to engage and retain new consumers in the region, especially as the market grows more competitive.
For more on these and other stories, visit the Playbook’s News and Trends.
Paramount on Supporting a Diverse Payments Mix to Boost Streaming and Subscription Services in Latin America
Latin America now represents the second-fastest-growing streaming market globally, with streaming platforms seeking to branch out from saturated areas like Europe or the United States flocking to the region in an attempt to cultivate new subscribers.
However, successfully establishing themselves inside the Latin American streaming or subscription market will require these platforms to carefully consider the region’s unique payments ecosystem, explained Paul Del Pin, vice president of marketing and growth, streaming services, LatAm for streaming and entertainment provider Paramount.
To learn more about why supporting a multitude of diverse payment methods is key to capturing Latin American consumers’ business, visit the Playbook’s Feature Story.
Why Seamless Payments Are Key for Latin America’s Growing Subscription Economy
The Latin American streaming and subscription economy is set to experience rapid growth in the next few years, with predictions finding the market will see an estimated 116 million streaming video-on-demand (SVOD) subscriptions by 2025. This represents a golden opportunity for streaming platforms and other subscription-based services, but for such entities to compete successfully in this increasingly saturated field, they must offer innovative and seamless experiences — including payments — to potential Latin American subscribers.
To learn more about why seamless payments are critical for the future expansion of the Latin American subscription market, visit the Playbook’s PYMNTS Intelligence.
About the Playbook
The Digitizing Payments In Latin America Playbook, done in collaboration with Kushki, examines the latest digital payments developments in Latin America, including how payment services providers can support consumer demands and gain a foothold within the region.