Technology

Amazon Prime and Apple TV + open new front in Latin America's streaming clash

The first streaming service landed on Tuesday in Brazil; the second will arrive on November 1st. Both with monthly subscriptions of BRL 9.90

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Staying at the forefront of the streaming market is proving to be an increasingly difficult mission for Netflix. This Tuesday (10), Apple announced that it will launch Apple TV + in 100 countries on November 1st, including Brazil and Mexico. Also on Tuesday, Amazon Prime landed in Brazil, a country where Netflix has reigned absolute, until now. Both services will charge BRL 9.90 monthly, well below the BRL 19.90 that Netflix charges for subscriptions in the country.

The gamble on creating its own productions is increasing costs and affecting Netflix’s profits – which fell 29.4% in the second quarter of this year compared to the same period last year – while it seems not to be attracting the expected number of subscribers. The debut of Amazon Prime and Apple TV + in Brazil, where Netflix reigns absolute with 12.5 million subscribers, promises to be a new frontline of this global war.

It was the strategy of investing in its own productions that also led the company to raise prices everywhere it operates since 2018. Faced with the arrival of new players who are also investing millions in original content and aggressively low prices, Netflix needs to revise its plans. For Amazon Prime, the combo offered goes beyond entertainment and includes unlimited free shipping, delivering in up to 48 hours for e-commerce purchases.

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In 2020, it is the turn for HBO Max, the on demand video service by AT&T and Warner Media, and Disney +, by Disney, to land in Brazil and other Latin American countries. These two new players also promise a price war. In the case of Disney +, the advertised subscription in the United States is $ 6.99 per month. This means that prices in Latin America must also be highly competitive. And of course, it’s not just a matter of price. Disney arrives with the power of its original productions and gigantic franchises like Marvel.

In addition to Mexico, Brazil is the main market for these companies in Latin America. This is where the war for Latin American subscribers will be fought.

A previously centralized market opens the door for different players to gain a larger share of the public, designing a completely different future for streaming products in the Brazilian market.

Who will really take the lead in the country? It is still early to say. The following are the profiles of the main streaming services available in Brazil and their advantages:

Netflix, the threatened leader

Since reaching popularity, Netflix has become virtually synonymous with streaming services among the Brazilian public, making it hard to find a user who is not a subscriber of the US brand. But what appeared to be a fortified kingdom is about to be besieged by the competition.

In addition to the need to raise subscription prices to balance business revenue, the company lost part of its portfolio to Disney and HBO Max. To the latter went Friends, the most watched series on Netflix.

In Brazil, the service went through a readjustment that raised the basic plan price from BRL 19.90 to BRL 37.90, and the premium plan from BRL 21.90 to BRL 45.90. The company’s big bet is on copyright productions, such as Stranger Things, which has a strong  international presence, and productions exclusively aimed at the Brazilian public, such as the recent series Sintonia, produced by Kondzilla, and the second season of Vai, Anitta.

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Disney +, the big promise for 2020

With a portfolio that offers Disney’s timeless classics, Star Wars movies, and the entire Marvel franchise, which has beaten all box office records worldwide, Disney + arrives in Brazil in 2020 with the promise to be one of the big players in the fight for market leadership.

Although the monthly fees for Brazilians have not yet been confirmed, the service will be launched in the United States in November with a monthly fee of $ 7, suggesting that the product should arrive in Brazil with a similar price tag to that of Netflix so far.

Another major similarity between the two companies is the interface. Reportedly both products will have a similar way of displaying the programs and series available to users.

Amazon Prime, the most cost-effective option along with Apple TV +

The service is a combo of access to streaming music, books, games, series, and movies. The monthly plan costs BRL 9.90 and BRL 89.90 per year. Subscription also guarantees free shipping for online store orders and access to exclusive promotions.

The package includes the Netflix competitor, Prime Video, and the Spotify competitor, Prime Music, albeit with a smaller catalog of songs. There is also Prime Reading, an eBook and magazine reader, as well as Twitch Prime, which offers access to a monthly selection of permanent downloadable games.

The highlight is the inclusion of benefits related to purchases. Subscribers receive unlimited free shipping nationwide with no minimum purchase and faster delivery than traditional orders. More than 20 product categories delivered by Amazon, including electronics, books, clothing, appliances, and more, are included in the new benefits.

If a customer is in the Prime Video trial period, when the free trial ends, they will be automatically migrated to Prime. Any customer who is already taking advantage of the offer of BRL 7.90 and would soon pay BRL 14.90, will also automatically migrate to the amount of BRL 9.90 per month (or BRL 89 per year).

Apple TV+, the most cost-effective together with Amazon Prime

Apple TV +, the new streaming service of Apple, is set to launch in more than 100 countries, including Mexico and Brazil – at the cost of MXN $ 69 and BRL 9.90.

And through Family Sharing the user can register up to six family members to share one Apple TV+ subscription. Starting today, customers who purchase any iPhone, iPad, Apple TV, iPod touch, or Mac can enjoy one year of Apple TV+ for free.

The service will offer original shows like “The Morning Show,” “Dickinson,” “See,” “For All Mankind,” and “The Elephant Queen” – click here to watch the trailers.  Apple TV+ will also be available on the Apple TV app on select 2018, 2019, and newer Samsung smart TVs, and on Amazon Fire TV, LG, Roku, Sony and VIZIO platforms in the future.