Latin American consumers are flocking to new virtual streaming and subscription platforms. In The Global Merchants’ Guide To Latin America, Navdeep Saini, co-founder and CEO of video-as-a-service provider DistroScale explains the importance of streaming media providers to meet the evolving payment preferences and loyalty of Latin American consumers.
Subscriptions to online media and streaming platforms have skyrocketed in Latin America as consumers continue seeking virtual entertainment indoors. This growth is expected to only increase over the next few years.
Finding a way to stand out is essential for streaming and subscription services as the market adapts to consumers’ demands.
Telecommunications, mobile and other services are competing to keep their customers engaged as digital streaming becomes more popular in Latin America, explained Navdeep Saini, co-founder and CEO of video-as-a-service provider DistroScale, the parent company of DistroTV. Offered in 60 countries, DistroTV recently launched its free streaming service — available on smart TVs and supported by ads — in six Latin American countries.
“What’s happened in Latin America is … a lot of the mobile companies or telecoms, they’ve bought the broadband,” Saini said in a recent PYMNTS interview. “So … to compete with cable, they’ve started delivering [these] value-added services [or] access to some streaming services.”
Offering a smooth onboarding experience is a crucial first step in capturing consumers’ attention and loyalty as the Latin American digital subscriptions market expands. This includes providing easy, convenient payment experiences, as any frictions could lead consumers to abandon their services for one of the many available alternatives.
Meeting Latin American Consumers’ Payment Needs
Digital payment solutions such as mobile wallets and other contactless methods are becoming more popular throughout Latin America as virtual streaming and other types of digital subscriptions catch on. Streaming and subscription services providers must keep a close eye on potential subscribers’ changing payment needs and how they can support the significant number of Latin American consumers who remain unbanked or underbanked.
Many Latin American consumers rely on prepaid cards for their virtual subscriptions and similar digital transactions, explained Saini, making it essential to support such methods alongside digital-first payment tools. He also said some consumers might continue to prefer these physical methods due to potential concerns over digital fraud and cybersecurity, even as virtual payment solutions become more prevalent.
“I think there is more concern [regarding fraud] there,” he said. “I think that is why people do prepaid … there is a bigger percentage of people there [who] feel more comfortable with cash transactions … if you can buy prepaid, you could buy a code and then you could access [the streaming service]. You could buy it in cash [and] you’re not registered, you’re not providing any kind of personal information.”
Digital subscription services must keep their payments processes smooth and convenient regardless of how consumers wish to pay, especially as the market becomes more competitive and such services become more widely adopted.
Digital Subscriptions and Next-Gen Streaming
Subscriptions are becoming more popular worldwide, but customers are spoiled for choice and maintaining their loyalty is growing more tricky for virtual streaming platforms. Saini said consumers would not sign up for 10 to 15 different video streaming subscription services, opening a door for the streaming industry to evolve.
“I think the macro trend all over the world is people are shifting away from cable to streaming,” he said. “I think that’s happening for us. Our belief here at DistroScale is that … as consumers, [when] we think of streaming, we think of subscription streaming as the big thing. But I think ad-supported streaming in the longer run is going to be a much bigger ecosystem than subscription-based streaming.”
Perfecting the payments experience by supporting emerging digital methods that integrate seamlessly into consumers’ chosen devices — especially within evolving markets such as Latin America — is one way subscription-based streaming services could gain a competitive advantage. Therefore, ensuring the payments process is as seamless as possible should be a top goal as they seek to gain a stronger foothold within the Latin American market.
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