Disney and Netflix's strategy to test the limits of consumer purchasing power by 2024

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In recent years, the world of streaming has undergone a true revolution. Giants such as Netflix and Disney, faced with the challenge of retaining subscribers in the post-pandemic period, have opted for innovative strategies. They are now offering more affordable plans with ads, a move to improve financial results and reduce subscription cancellations.

But that's not all. At the same time, there has been an increase in the prices of ad-free plans. Netflix, for example, now charges R$55.90 for its premium service without ad interruptions. According to predictions by Kantar Ibope Media, this trend of rising monthly fees seems to be here to stay.

Melissa Vogel, CEO of Kantar Ibope Media, highlights the importance of understanding consumption patterns. For her, 2024 will be a crucial year to test price limits and understand how far consumers are willing to go.

But this strategy of lower-cost, ad-supported plans france telegram data by region. In countries like Denmark, Norway, Sweden, Spain and the United Kingdom, consumers tend to prefer ad-free services, even if they are more expensive. In contrast, in countries like Taiwan, Egypt, Japan, Hong Kong and Thailand, consumers prefer to watch commercials to avoid additional costs.

These differences signal distinct behaviors regarding payment models. As Vogel points out, in European markets, for example, the tendency is to pay more to avoid ads, while in developing countries, the choice falls on cheaper options with advertising.

The company’s study also reveals interesting trends for 2024. In the UK, subscription cancellations are expected to increase. In Q3 2023, 14.2% of respondents planned to discontinue their service in the following year, a significant increase from Q2 2022.

In the context of a global economic crisis, consumer preferences are changing. Many are choosing to prioritize savings and investments, with only 4% opting for online subscriptions such as Amazon Prime and Netflix. This suggests that such services could be among the first to be cut in times of financial hardship.

However, there is still room for growth in markets such as the UK, Brazil and the US, where online subscriptions are still a priority. In contrast, in China, Taiwan and Indonesia, subscription cancellations are more common.

Finally, the study highlights the importance of a localized strategy. To achieve global success in streaming, it is crucial to adapt offerings, from content curation to pricing and promotional tactics, to the characteristics of each market. Local content production is also a key point, especially considering events such as the Hollywood writers’ strike. In short, to reach a diverse global audience, it is essential to understand and respect regional nuances.