A. Guttmann
Research Lead covering media
Netflix in Latin America - statistics & facts
Netflix's regional markets south of the United States form a comparatively modest source of income. Yet they certainly boosted the company's financials as it entered the 2020s. Little more than 13 percent of Netflix's revenue came from Latin America in 2023, while the share of the U.S. and Canada surpassed 40 percent. However, growth rates in their neighboring subcontinent indicated its potential for expansion. Netflix's revenue in Latin America in the last quarter of 2023 was nearly seven percent higher than in the same period of the previous year. The results of the video streaming service are expected to continue to rise in the region, but not for much longer. Sources estimate that the annual revenue of Netflix in Latin America will peak in 2023 before slowly declining as the decade unfolds, already falling behind 2021 standards by 2026.
In general, Netflix in Latin America is thriving, the market has quite a lot of potential in terms of subscription revenue. However, this is expected to slow down, the same way it happened for streaming services in regions saturated with numerous providers. Therefore it is safe to say that following a global trend, Netflix and its competitors will need to pivot to different revenue streams, out of which advertising shows the most promise.
Netflix's competitors in Latin America
The company maintains a stable lead in the region's streaming market which will likely not change as the company is expected to hold 30 percent of OTT revenues in Latin America in 2027. While Netflix subscriptions were forecast to increase throughout the 2020s, two other players were also projected to expand their userbases: Amazon Prime Video and, even more so, Disney+. It is estimated that the number of Disney+ subscribers in Latin America will have grown by over 160 percent between 2021 and 2026, which turns Mickey's empire into a solid second-placed competitor. All in all, the Latin American video-on-demand market seems to be ruled by the three major international players, with only a fraction belonging to local contenders, such as Claro.Brazilians lead in Netflix viewership
Content on Netflix, especially TV shows, has some avid fans in Brazil. Data indicates that in late 2023 more than 63 million viewers watched series on Netflix in just one quarter. What is more, at that time Brazilians viewed over 2.8 billion hours of TV shows on the platform. In comparison, Mexico, which ranked second for these metrics, had 50 million TV series viewers and 2.1 billion hours viewed. This, however cannot be explained by the library size, as the number of TV shows available on the platform in Mexico and in Brazil fairly equal.In general, Netflix in Latin America is thriving, the market has quite a lot of potential in terms of subscription revenue. However, this is expected to slow down, the same way it happened for streaming services in regions saturated with numerous providers. Therefore it is safe to say that following a global trend, Netflix and its competitors will need to pivot to different revenue streams, out of which advertising shows the most promise.
