Tech roundup: Is Netflix losing momentum in Latin America?

Welcome to our Tech Roundup, where we bring you Brazil’s biggest stories in technology and innovation. This week: Netflix has lost subscribers in Latam. Is it a one-off consequence of its password-sharing crackdown or a sign that its regional hegemony is at risk?

Is Netflix losing momentum in Latin America?

Days ago, streaming industry pioneer Netflix reported USD 8.1 billion in revenue for Q1 2023, a 3.7 percent year-on-year increase, which was in line with the company’s guidance. But its subscriber base came in way below analysts’ expectations, including a sharp drop in the platform’s subscribers in Latin America — the company’s fastest-growing market.

By the numbers. The company added 1.75 million subscribers — way down from the 7.66 million counted in the previous quarter and analysts’ forecast of 2.3 million net additions. It ended March with 232.5 million subscribers worldwide, reporting expressive growth only in the Asia-Pacific region and mild or negative results in the other three areas. 

• + 100,000 subscribers in the U.S. and Canada, 74.4 million members;
• + 640,000 subscribers in Europe, Middle East, and Africa (EMEA), to 77.37 million;
• – 450,000 paid members in Latin America, to 41.25 million subscribers.

Upside. More than 80 percent of the new Q1 2023 subscribers came from the Asia-Pacific region, which ended March with 39.5 million members.

Why it matters. The drop in LatAm may be a one-off reaction to Netflix’s paid-sharing program — or it could be a sign that the streaming industry is getting more competitive and that the company may be losing...