Disney+ arrives in Latin America just as the region’s streaming wars are beginning to intensify. Local players, such as Claro video and Globoplay, have seen positive subscriber growth but continue to face steep competition from the likes of international players, most notably Netflix. Amazon Prime Video launched in the region in late 2016 but has not been able to chip away at the streaming behemoth’s dominance. What’s more, HBO Max and Hulu will be rolling out in these markets in 2021.
Nevertheless, Netflix announced days after its Q3 2020 earnings release that the company will ramp up its content creation efforts in Latin America by launching 10 new original productions between 2020 and 2021. Even though Netflix has a brand advantage in the video streaming market there—especially after the release of “Roma” in 2018 which garnered nine awards and 20 nominations worldwide—few companies have Disney’s historical brand recognition and proven track record of winning consumers’ hearts (and wallets) for nearly a century.
In an effort to stave off competition and drive significant subscriber growth, Disney+ has implemented an aggressive go-to-market strategy by forming key partnerships in Latin America. Some notable ones include deals with Telecom Argentina, with Vivo and Globoplay in Brazil, and with Izzi and Telmex in Mexico. Disney+ has also teamed up with ecommerce giant Mercado Libre to offer consumers a free subscription period based on their level of Mercado Puntos, or Market Points in English.
Disney+ has also taken a page out of Netflix’s playbook and localized its prices in select markets as part of a broader strategy to position—and grow—its global product offering in response to the regional economic realities at play.
Although in certain countries the service is more expensive than Netflix’s basic plan—which only lets subscribers stream on a single screen at a time in standard definition—Disney+ allows four concurrent streams across devices with up to 4K ultrahigh-definition, contingent on the device used to access the service. As such, these features put Disney+’s offering on par with Netflix’s premium plan and make its monthly cost both significantly cheaper and more attractive to cost-conscious consumers.