Bloomberg Linea – Latin America recorded the highest year-on-year growth in Netflix (NFLX) in the second quarter compared to other world regions, the company said in a letter to its shareholders on Tuesday (July 19).
The streaming platform posted revenue of $1.03 billion, with a 16% year-over-year jump in Latin America. In the UCAN region (USA and Canada), it grew by 10%, with losses of -4% in EMEA (Europe, Middle East and Africa) and -9% in the Asia Pacific region (Asia Pacific).
In the first half of 2022, growth was 14% compared to the first six months of 2021, also outperforming other regions.
Netflix’s revenue in Latin America was broadly flat, from $999 million to $1.03 billion in the fourth quarter, compared to the second quarter, and revenue was $2.029 million in the first half of this year in the region. The number of paid subscribers in Latin America remained stable at 39.62 million in the second quarter (versus 39.61 million in the first quarter).
In March, Netflix revealed that it was testing two paid account sharing features in Chile, Costa Rica and Peru. On Monday, the company announced that it will now ask in those countries if users want to pay a fee of an unspecified amount to add a new member to the account.
Tests are also expanding to Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic, where users will be asked if they want to pay an additional fee to share an account. The price will range from $1.70 in Argentina to $2.99 in other countries.
In response to a question by investors after the quarterly results were published, Netflix COO said, Greg PetersHe said the company has been “working on this technology behind the scenes” for the past two years and is now in the process of launching the service to test it with Latin American users in five new markets. .
Peters explained that the company is testing two models with Latin American consumers.
In the first model, consumers pay to add a new member. In the second model, users pay to add new homes.
“At this point, we’re starting to see what really works for users. We’re learning a lot as we use the models. It’s too early to tell, we’ve already started testing the second model. But I would say we’re confident, based on what we’re seeing, to officially launch the year Next as we plan.”
Cuando se le preguntó cómo sabrá Netflix si los usuarios están viajando cuando acceden a la cuenta desde otra ubicación, Peters dijo que una de las razones por las que la compañía ha estado trabajando acceden de comp séré de las para sár e the network.
“It has to be an easy-to-use model that supports things like travel and different devices, but also makes sure we do a good job and get paid. The models are different and we come up with what works best.”
The Pay-to-Share account is one of the alternatives that Netflix is testing to monetize the service, along with an ad version of the streaming platform.
In the second quarter, Netflix lost fewer subscribers than it expected, thanks in large part to the success of the Stranger Things series, with CEO Reed Hastings attributing it to “less bad results.”
However, “losing a million subscribers and calling it a success is difficult,” Hastings admitted while recording the investor’s video.
The company also said that every recession is different and is closely watching the macroeconomic scenario, but it was optimistic about the economic driver of new forms of monetization, such as advertising. According to Netflix, companies are interested in advertising on the platform and want to partner with successful streaming titles.
Netflix expects advertising to be a small portion of revenue initially, but it will grow over time.
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