Amid strong expectation, Disney launched its OTT video service platform, Disney+, in Latin America and the Caribbean on 17 November, as part of its ambitious global expansion plan.

The SVoD platform, which arrives to the region after a successful reception in the US, Western Europe and Southeast Asia-Pacific, is available at US$5.99 per month, although clients can also access the platform for an annual discounted fee of US$59.99.

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As part of its distribution strategy, Disney is setting up partnerships with a number of telecom operators, pay-TV and media service providers across the region, such as Telecom Argentina/Cablevision, Izzi (Televisa), Globoplay in Brazil, America Movil (Claro) and Telefonica among others. These agreements will allow operators to offer the service with monthly subscription discounts and/or extended trial periods.

 

GlobalData estimates that SVoD unique subscription household penetration in Latin America will reach 23.6% at year-end 2020, expanding to 33.3% by 2024. Growth will be mainly driven by the increasing uptake of broadband services; viewers changing habits, from time-scheduled to on-demand content; and the emergence of new platforms featuring locally relevant content.

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Global players such as Netflix and Amazon Video, for instance, have been investing on the production of local content over the last several years, while Disney+ includes Disney’s existing catalog of locally produced series and is working on several local productions.

By 2024, Disney+ will consolidate as the third largest player in Latin America with 8.0% of the total SVoD subscriptions in the region, behind market leaders Netflix and Amazon Video.