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Brazil now has more Netflix subscribers than pay-TV households, according to Bernstein analysts. Here are 3 takeaways from their report about the key streaming market.

  • Bernstein analysts estimate that Brazil now has more Netflix subscribers than pay-TV households.
  • The country was a launchpad for Netflix as it expanded its streaming service from the US to much of the world.
  • Streaming rivals like Disney Plus and HBO Max plan to enter Brazil soon.
  • Business Insider broke down three takeaways from Bernstein's report about the streaming market in Brazil.
  • Visit Insider's homepage for more stories.

Analysts at the Wall Street firm Bernstein estimate that Brazil now has more Netflix subscribers than pay-TV households and is probably the streamer's second-largest market outside of the US.

Netflix doesn't break out subscribers by country. But Bernstein estimated in an August 28 report that the streaming giant had more than 17 million paying subscribers in Brazil as of June.

Netflix's Brazilian subscriber base surpassed the number of pay-TV households in the country around the same time, the report estimated. It'd mark a new milestone in the country, which has been losing pay-TV subscribers in recent years amid slowing economic growth, high unemployment, and, more recently, the coronavirus pandemic. 

By comparison, Netflix had more than 60 million paying subscribers in the US as of October, when it last broke out the region in its filings.

Netflix, the Bernstein analysts wrote, is winning in Brazil because it "provides a superior product at a quarter of the price of pay TV."

Netflix's milestone comes as other streaming services look to enter the market. Disney Plus plans to expand into Brazil in November, and HBO Max is eyeing an entry into Latin America.

Here are three takeaways about Brazil's streaming market that we can glean from Netflix's dominance there, according to Bernstein, which has an outperform rating for Netflix based on its international growth prospects:

  • Brazil is a big potential market for streaming. Netflix built the market for streaming video in Brazil as the first major player to launch a subscription service in 2011. By 2017, Netflix reached roughly 6.5 million subscribers in Brazil and continued to grow from there. Competition from streamers like Amazon Prime Video and local player, Globoplay, didn't halt Netflix's growth in the region, which Bernstein wrote shows there's room for competition.
  • Audiences are willing to pay for streaming video. Netflix raised the price of its standard plan five times since its 2011 debut, up 37% in 2020 terms of the local currency. Netflix's growth in Brazil was "not achieved through cut-rate pricing," the report said. It also said rivals like Amazon Prime Video and Globoplay cost less than Netflix's standard plan in Brazil, which suggests Netflix is the benchmark for pricing in the country.
  • The most watched titles in Netflix Brazil are most commonly in English, followed by Spanish and Portuguese. On average, English-language programming filled six of the top 10 titles on Netflix Brazil each week between March and August, followed by Spanish-language and then Portuguese-language programming. It shows that local audiences are drawn to English-language programming, and that there may be more room for more local-language content. The findings are likely influenced by the makeup of Netflix's library.

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