Market Trends of Latin America Subscription and Billing Management Industry
This section covers the major market trends shaping the Latin America Subscription & Billing Management Market according to our research experts:
Significant Adoption Is Expected in the Media and Entertainment Industry
- The media and entertainment sector is a prime example of rapid digital transformation, constantly innovating technology and developing new ways to generate and distribute subscription-based digital products. Advertisers, publishers, broadcasters, and others are adopting the subscription-based business model to keep up with the continually expanding demand.
- The subscription video-on-demand (SVOD) streaming scene is fast expanding due to the expansion of media providers like Netflix, Amazon Prime, Eros Now, Hulu, Hotstar, and others. In addition, new entrants like Disney+ and Apple TV+, as well as Claro Video and HBO Max, fuel market expansion.
- Hence, the broadcast platforms, media corporations, and advertising companies are rapidly deploying subscription billing management solutions with an aim to integrate revenue processes into one streamlined customer-focused experience, which is expected to provide unprecedented insight into the entire Quote-to-Cash process.
- Smartphone adoption, low data tariffs, and investments in original and regional digital content are some favorable aspects driving the subscription and billing management industry.
- In September 2021, Respondents were asked to select their favorite subscription video-on-demand (SVOD) platform in a survey conducted by Sherlock Communications in Brazil. Almost two-thirds (63%) of those polled chose Netflix. Amazon Prime came in second place, with 16% of respondents choosing it. Globoplay and HBO Max were selected by around 6% of the subjects.
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Internet Penetration holds Significant growth in the Market
- With the increasing number of smartphones worldwide and high-speed cellular networks present in most countries worldwide, the e-commerce industry is growing. With an increase in the E-commerce industry, mobile transactions are also expected to grow rapidly, providing a significant boost to the Subscription market.
- Both B2C and B2B businesses are seeing an increase in recurring revenue from subscriptions. Customers prefer to rent software rather than buy it. Therefore subscription as a service (SAAS) is becoming increasingly popular among enterprises.
- Latin America is a continent brimming with growth chances and potential, with a population of 657 million and a USD 10.5 trillion economy forecast to return to positive growth of 3.7 percent in 2021. It is home to a booming mobile-minded middle class and a knowledge-hungry workforce willing to embrace technological solutions to progress their communities.
- Moreover, According to GSMA Intelligence, mobile internet penetration in Latin America will rise from 53% in 2018 to 64% by 2025.
- For instance, prominent technology companies such as Uber, Spotify, Apple Inc., and Google LLC have transformed their business models to adapt to changing customer demand and are transitioning from a static & linear product offering to a subscription-based model to encourage predictable, recurring, and stable revenue.
- Organizations are considering introducing better billing strategies to build flexible business operations and save capital investment. Paperless billing methods help organizations save money on paper, printing, and shipping. Customers can better arrange their payment schedules and budgets and prevent excessive late penalties by employing software and internet portals for billing and subscriptions.
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