Mexico. Subscription video on demand (SVOD) platforms are experiencing accelerated hiring dynamics, both internationally and in Mexico.
In the first half of 2019, the accounting of subscriptions to these platforms amounted to 8.9 million, equivalent to an annual growth of 10.5%, a pace that continues to be double digits.
This trajectory is mainly attributable to the growing preference for the consumption of content through this route, as well as the increase and diversification of access alternatives.
In this regard, in recent days, new options for access to SVOD content have been subscribed, with the launch of channels on the Amazon Prime Video platform, which allows the hiring of HBO, Starz Play, Paramount +, MGM, among others, from it. In addition, we are a few days away (November 1) from the addition of a new player in this market in Mexico, Apple TV+ and also the launch of Disney+ (November 12) in select territories, which promise to consolidate a robust and competitive offer in terms of prices and content catalog.
Ownership of Subscriptions
With a greater diversity of access alternatives, it has begun to analyze the convenience of encouraging the hiring of new accounts, from restricting the rotation of users or the offer of low-cost consumption alternatives. In this sense, it has been announced the possible restriction on the sharing of passwords of subscriptions and the launch of exclusive plans for viewing content on mobile devices.
In the case of Mexico, this phenomenon of account sharing amounts to 49% of the total users of SVOD platforms, the remaining proportion (51%) are users who own their subscription.
Precisely, from the identification and knowledge of this incidence that the implementation of the aforementioned solutions is analyzed, in a market in which the expansion of the bidding players threatens to undermine the growth of those who are in the lead by the number of subscriptions.
Number of Contracted Platforms
Another relevant element, before the next launch of platforms and reconfiguration of the competitive ecosystem of SVOD platforms, is that of the number of subscriptions contracted.
In our country, the average number of subscribed accounts is 1.3 of those users who are owners, such that just over 8 out of 10 are subscribed to only one SVOD platform and the rest (17%) to more than one, although in some cases, this is provided by the mobile telecommunications operator or at home.
With the emergence of new players and platforms, some reason users could begin to choose more than one alternative or have more than one subscription, in order to have access to the largest catalog of original content, obviously, subject to their budgetary restriction.
It is foreseeable that in later periods, this average statistic and distribution of subscribers to more than one platform, register an appreciation in some magnitude, subject to the fact that some users could even choose to subscribe to the new platforms and temporarily cancel the one they currently have.
Since the recognition of this numeralia, the main players in the market have undertaken strategies to create and capture a greater accounting of their subscriptions. Thus, the library available on their platforms is more abundant and diverse, at the same time that they have launched new alternatives (e.g. new plans and incorporation of channels) and locks to the sharing of accounts to maintain their relevance and prevent the migration of users to new alternatives.
Text written by Ernesto Piedras of The Competitive Intelligence Unit.
