SVOD usage in Mexico – is it waning?
More and more Mexicans are steadily signing up to video streaming services. The latest figures show that SVOD subscriptions in the country grew by three percent year-on-year in the last quarter of 2023. How often do these viewers stream video content? More than half of surveyed Mexicans admit to using streaming services daily, for more than one hour per day, and close to 10 percent did so for over three hours. Only 12 percent said they streamed video content for less than an hour per week. However, despite the still growing user numbers, subscriptions in Mexico hang in the balance. Recent studies show that more than half of SVOD customers have canceled their subscription and not come back. Another quarter have only used free trials or promotions, while a further 17 percent have downgraded to a cheaper plan. In turn, the future of streaming and subscriber-growth might lie with bundles, as consumers are more likely to switch telecom providers to obtain access to packaged video streaming platforms.Key players on the video streaming arena
Netflix is an undeniable leader when it comes to video streaming in Mexico. Based on the number of SVOD platform subscriptions, the platform is roughly 60 percent ahead of Disney+ and Amazon Prime Video. These two platforms are Netflix’s closest competitors, yet still visibly trailing behind. Consumer interest in SVOD services in Mexico also skews towards Netflix. The streaming giant offers a large library of movies and series in the country, with over 6,000 titles. This translates to many hours of content viewing, placing Mexico in third place in terms of content consumption in the Americas. Ultimately, Netflix rules the small screen in Mexico.In general, SVOD subscriptions in Mexico continue to grow, albeit more slowly than in previous years. However, the changing consumption habits and the need to prioritize expenditures means that the future of the platform revenue from subscriptions is in question. Instead, the growth will lie in free ad-supported streams. Streaming platforms need to offer more varied and cheaper options to have a fighting chance to catch up with the current advantage that Netflix has over the competition on the Mexican video streaming market.
