Pay-TV Subscriber Losses
After many years of impressive growth, Brazil’s direct-to-home pay-TV market has stalled out at 19 million subscribers. Latin America’s second largest television market lost nearly 600,000 subs over the last six months of 2015.
The rate of cancelling subscribers from month-to-month accelerated in the fourth quarter. From August to September 100,000 subscribers cancelled their service. Another 168,000 cancelled in September and 172,000 in November. Virtually all the loses were suffered by direct-to-home satellite operators. Cable operators actually had modest gains in 2015.
Satellite operators control the largest portion of Brazil’s television market with a 60% share, with the other 40% going to cable providers.
Brazil’s Subscriber Flatline
Leading television providers Claro lost over 200,000 subs, and Sky lost nearly 300,000 in the last six months of 2015. Of the five providers – Claro, Sky, Telefonica, Oi, and Outras – Telefonica was the only provider that gained subscribers in Q3 & Q4.
Brazilian Direct-to-Home Subscribers (2015)
| Month | Claro | Sky/ATT | Telefonica | Oi | Outras | Others | Total |
|---|---|---|---|---|---|---|---|
| May | 10.19 | 5.69 | 1.78 | - | 1.58 | 0.44 | 19.71 |
| June | 10.15 | 5.65 | 1.80 | - | 1.57 | 0.44 | 19.63 |
| July | 10.16 | 5.67 | 1.82 | - | 1.57 | 0.44 | 19.66 |
| August | 10.15 | 5.60 | 1.83 | 1.18 | 0.38 | 0.44 | 19.60 |
| Sept. | 10.13 | 5.53 | 1.84 | 1.17 | 0.38 | 0.43 | 19.50 |
| Oct. | 10.08 | 5.47 | 1.84 | 1.16 | 0.38 | 0.43 | 19.33 |
| Nov. | 9.98 | 5.41 | 1.83 | 1.16 | 0.37 | 0.38 | 19.16 |
| Loss/Gain | -0.21 | -0.28 | 0.05 | -0.02 | -1.21 | -0.06 | -0.55 |
| in millions |
Netflix’s Non-English Crown Jewel
Given these loses, it is no surprise that Netflix’s growth in Brazil has been spectacular. Currently, the Portuguese-speaking nation of 200 million is the streaming giant’s third largest international market. Netflix has approximately 3.4 million subscribers in Brazil, behind the Canada with 3.9 million, and the U.K. with 5 million. Since its launch in 2011, Netflix’s subs have grown 150% in the early years, and 55% in 2015.
