Since early 2020, social distancing has been the norm in the fight against Covid-19. Most people began to stay at home, during both their work and leisure time. No more trips to the cinema, theater, exhibitions… The entertainment market was significantly disrupted, and strengthened in the digital segment, with on-demand consumption gaining particular prominence.
Streaming services have become even more popular, as have YouTubers’ videos and musicians’ livestreams – many have found ways to keep playing shows, even during a pandemic. But what are people actually watching? A Think With Google report states: “Whether alone or accompanied, people have been watching more videos: for 30% of Brazilians online, videos are the preferred content format.”
There are a few reasons behind the increased demand for streaming and on-demand platforms in the entertainment industry. The consumer can now choose what, how and when to watch – whether on their computer, tablet, cell phone or television. This new-found freedom is amplified by the countless movies, shows, soap operas, cartoons, videos by independent content creators and livestreamed concerts that are just a click away.
These insights suggest that, in this period of great instability, people want to be distracted and entertained. And videos are at the top of their list of options. So brands can – and should – seize the moment to reinforce branding, raise awareness and even generate sales.
A digital presence was important before, but now it is essential. The possibilities are endless, but brands should know which types of activation make sense on a case-by-case basis. This includes active profiles on social media, online ads, sponsorship of content on streaming platforms, or even partnerships with digital influencers.
Many retail brands, for example, are betting on Live Commerces to increase sales and generate revenue. These are live broadcasts that combine entertainment (i.e. concerts by musicians, with the participation of guests and influencers) and real-time offers. Consumers tune in to be entertained, but can be reached by the brand that is “promoting” the event. Think With Google has an interesting article about this phenomenon.
The pandemic and social distancing have cemented the trend towards on-demand consumption and the search for streaming services. In the first half of 2020, Netflix gained 25 million new customers – almost the amount won over during the whole of 2019. The Brazilian market is especially competitive, with the arrival of new platforms in the past year including Disney+ and HBO Max.
Not by chance, a recent report by Sherlock Communications reveals that nearly 70% of Latin Americans signed up to at least one streaming platform in 2020. The study, “Market, Consumption And Diversity In Video Streaming Services In Latin America“, examines the heated streaming market in Latin America. Highlights of the report include:
- The views of more than 3,000 consumers from the six main countries in the region (Brazil, Mexico, Argentina, Colombia, Peru and Chile);
- One in five Mexicans now subscribe to at least four different platforms;
- Around 80% of Peruvians have subscribed to at least one new video-on-demand service this year;
- One-third of all respondents now have two separate subscriptions;
- Exclusive films and shows, access to favorite programs, and high quality content produced in Latin America – these are some of the reasons cited when choosing to subscribe to a particular service
These insights will be useful for brands and companies that operate in the region, and want to understand attitudes towards consumption and entertainment in each market.
