Netflix continues slowing its subscribers growth in Latin America and confirms plans to add gaming content on its catalog

As part of its Q2 2021 financial results presentation, Netflix reported a total of 38.6 million subscribers in Latin America. According to the information reported, the company achieved only 764 thousand net additions in relation to Q1, when it reported 37.8 million subscribers in the region; and 2.59 million new subscribers in relation to June 30th, 2020.

Despite the fact that the trend towards the rise of Netflix subscribers continues, the reported figures are far away from those of 2019 and 2020. According to the information available in the report, the SVOD OTT ended 2020 with just over 37.5 million subscribers in the region, and during the first six months of 2021, it barely managed to add 1.1 million customers, to total the 38.6 million subscribers already mentioned.

In terms of number of subscribers at the end of Q2 2021, Latin America ranks third with 38.6 million subscribers. It is preceded by the United States and Canada (UCAN) with 73.9 million, and the region of Europe, Middle East and Africa (EMEA), with 68.6 million; and, in fourth and last place, is the Asia-Pacific region (APAC) region, which reported 27.8 million subscribers. Of the four regions, all of them made an increase in subscribers between Q1 and Q2 2021, except for UCAN, which ended March with 74.3 million clients, thus reporting  a loss of 433 thousand users between March and June.

‘Covid has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through. We continue to focus on improving our service for our members and bringing them the best stories from around the world’, they reported from Netflix on its letter to shareholders. In addition, for Q3 2021, the platform forecasts paid net additions of 3.5 million worldwide.

In terms of content in Latin America, Netflix mentioned its original format ‘Too Hot to Handle’, whose local versions in Brazil and Latin America will be launching in July and September, respectively. Netflix has also made reference to the Mexican ‘Who Killed Sara?’ (‘¿Quien mato a Sara?’), which was watched in 34 million households on a global scale.

Apart from that, Netflix reported its plans to invest USD 12 billion in terms of content amortization this year, and confirmed its plans to include video games on its catalog.  ‘We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV. Games will be included in member’s Netflix subscription at no additional cost, similar to films and series. Initially, we will be primarily focused on games for mobile devices’, they reported from the company on the matter.