Digital payments are becoming more common across Latin America as the pandemic’s influence persuades more consumers to head online for everything from banking to entertainment. More consumers are turning to subscription-based services to find engaging, unique online content, with digital subscriptions increasing 32% during the first few months of the pandemic.
As the Latin American digital subscription market becomes more saturated, virtual streaming and subscription platforms — including large-scale international players such as Netflix or Hulu — must find innovative ways to capture and retain newfound digital subscribers in the region. This means providing engaging media and supporting the shifting payment needs and expectations of Latin American consumers who are utilizing digital channels and payment tools for the first time.
In the February edition of The Global Merchants’ Guide To Latin America, PYMNTS examines how online streaming and other virtual subscription platforms are taking shape in Latin America and why meeting shifting payment preferences within this market is critical for such platforms to engage and retain customers.
Around the Latin American Payments Ecosystem
New subscription services seeking to capture consumers’ attention must find ways to stand out in an increasingly saturated field. Providing engaging, unique content and affordable pricing can help entice customers to try new streaming platforms. One recent study found 41% of consumers in Argentina, Brazil, Chile, Colombia, Mexico and Peru bought subscriptions to new services in 2021 because of special promotions or introductory offers. The top reason these consumers signed up to new platforms was access to new content, with 63% of consumers reporting this was the reason behind their subscriptions. Figuring out such a balance should therefore be a top goal for streaming and subscription services as they seek to gain a foothold within the region.
Providing enticing programming and seamless customer experiences is crucial for digital subscriptions services worldwide as the market grows more saturated. A recent report predicted consumers globally would cancel up to 150 million digital video-on-demand subscriptions this year, making reducing customer churn essential for streaming services that spend an average of $200 USD to acquire one new subscriber. Digital subscription platforms can gain an advantage over their competition by creating content that caters to local markets and supporting local payment methods preferred by consumers. This approach is becoming more common in Latin America, and subscription services must therefore move quickly to keep pace.
For more on these and other stories, visit the Guide’s News and Trends.
DistroTV: How Virtual Streaming Services Can Earn Latin American Consumers’ Loyalty
Throughout the pandemic, Latin American consumers turned to digital streaming and subscription services in higher numbers. The popularity of such services is only expected to increase in the next few years. As such, standing apart from the digital streaming pack is essential for platforms and services seeking to engage and retain newly digital customers in the region, making finding unique ways to capture their loyalty critical, explained Navdeep Saini, co-founder and CEO of video-as-a-service provider DistroScale — which supports free streaming channel DistroTV — in a recent PYMNTS interview. To learn more about how virtual streaming services can capture Latin American consumers’ loyalty, visit the Guide’s Feature Story.
PYMNTS Intelligence: Why Seamless Payments Are Key for Digital Streaming Growth in Latin America
Rising internet and smartphone penetration has helped boost online media consumption in Latin America during the past two years. Because of this, the region is now the second-fastest-growing digital streaming market globally, according to one recent report. As video and audio streaming services become more popular, however, fostering further growth can be tricky for even large-scale digital subscription platforms such as Netflix as they look to increase their viewership. Supporting the payment preferences and needs of Latin American consumers is key for such platforms to keep pace with an increasing number of local and international competitors. This month, PYMNTS examines why keeping pace with shifting payment needs is critical for digital subscription services seeking to compete successfully in Latin America.
About the Guide
The Global Merchants’ Guide To Latin America, done in collaboration with EBANX, takes a close look at retail and payment developments within Latin America and how global marketplaces and brands can keep pace with such shifts to expand customer engagement and loyalty.