Mexico. Subscription video-on-demand (SVOD) streaming platforms continue to boost their competitiveness in the offer of audiovisual content to attract and retain audiences and strengthen their business model.
To achieve this goal, they have not only chosen to invest increasingly in original content and diversify their offer of titles and genres, but they have also diversified their plans with reduced prices, as well as the acquisition of licenses for the transmission of live events (sports and concerts).
Today, consumers have a growing number of SVOD platforms that compete head-on for prices, content and user experience, in a dynamic market that is moving towards a phase in which there are better conditions of offer for the consumer.
Average Spend on SVOD Platforms
Precisely, in the current stage of the market, users seek to generate budget savings for the contracting and continuity of the subscription to SVOD platforms. This, based on the restrictions faced by audiences, in the face of the adverse macroeconomic scenario: deceleration of GDP, incessant inflation and consequent decrease in their purchasing power.
With a cost starting at $49 pesos, audiences can access one of these platforms, for a lower price than other traditional alternatives. On average, users have to pay $186.5 pesos to have a subscription.
On the other hand, at the end of the first half of 2024, the increase in prices of the platforms has resulted in an increase in the proportion of users who have contracted only one alternative (55%), the vast majority, compared to a smaller reason that they are subscribers of two (26%) or three or more (19%).
Undoubtedly, players in the SVOD market must maintain their tariff competitiveness in the so-called 'streaming war' in which the differential between one platform or another is not only the content, but also the price and contracting plans of these. This is to avoid the frequent departure or rotation of users.
SVOD Player Strategy
One of the ways that are proving to be conducive to contracting platforms is the offer of differentiated plans, especially low-cost ones with the insertion of advertising guidelines. This has resulted in an increase in users who have their own account to 36% of the total, while 64% say they share their password.
In the case of Netflix, the main player that since last year imposed locks on the sharing of streaming accounts, it has reported favorable additions and growth in its subscriptions globally as a result of this strategy.
Additionally, the packaged offer of platforms, for example, with the inclusion of the Star+ catalog within Disney+ in Mexico and Latin America and the launch of the Disney+, Hulu and Max combo in the United States, is being another of the strategic moves in the market to lighten the economic burden for audiences, attract and maintain subscribers and achieve greater profitability and margins of its business model.
All these actions are focused on offering consumers better tariff conditions, maintaining their competitiveness among the alternatives in this market as well as with others outside it and generating loyalty and commitment in the contracting of the platforms.
Analysis by Radamés Camargo of The CIU.
