70% of users cancel their subscriptions to streaming platforms in Argentina. Find out the reasons.
The streaming platforms as Netflix, Amazon Prime, HBO Max, Star+ and Disney+ are extremely popular in Argentina, offering a wide variety of content for all tastes. With an average of daily consumption of 3.1 hoursthese platforms became a fundamental part of home entertainment.
According to a survey, three out of every five people in Latin America consider that having more than one streaming service is too expensive. In Argentina this reaches 70% of people, followed by Chile with the 62%. This price increase resulted in an increasing number of subscription cancellations in the last 12 months.
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The reasons behind subscription cancellations in Argentina
Argentine users pay for their subscriptions in pesos, but the cost of services like Netflix is linked to the value of the dollar. This is becausemost of the streaming platforms They establish their prices in dollars and then convert them to pesos at the official exchange rate, adding the corresponding taxes. Therefore, any fluctuation in the value of the dollar directly affects the cost of Netflix for users in Argentina.
In Argentina, this percentage reaches 34%, being the highest in the region. The fluctuation of the official dollar and taxes, such as VAT (21%) and the PAIS Tax (8%), are significant factors in this scenario.
Additionally, sharing an account was a common practice among friends and family to reduce costs, but the strictest platform policies caused some users to decide to cancel their subscriptions instead of paying individually for each account.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
