The Impact of Rising Prices on Mexican Streaming Platform Users

A study conducted by The Competitive Intelligence Unit (The CIU), a consulting firm specialized in information technologies, pointed out the negative impact on Mexican streaming platform users as a result of the constant increases in these companies’ rates, the diversification of contracting plans, and the implementation of new business models.

The CIU's research reveals that platforms such as Netflix and Prime Video have led these changes, with constant rate increases and the introduction of more aggressive advertising systems. For example, in October 2022, Netflix, the Mexican market leader, according to the Federal Telecommunications Institute, eliminated the basic plan model, which previously allowed ad-free viewing and content downloads, implementing instead a standard package with ads for MX$99 (US$5.80). In October 2023 Netflix again modified its basic plan, now limiting the content within the platform.

Meanwhile, Prime Video, from 2018 to date, has also raised its prices and introduced additional fees to avoid commercials when playing content. According to The CIU's study, this decision has generated strong discontent among users, not only in Mexico, causing collective lawsuits in the United States. With respect to the latter, according to the news media Expansión, the same type of lawsuits could be filed by users in Mexico, due to the change in the original terms of agreement without the users' authorization.

Also, according to The CIU study, streaming services such as Disney+, Max, Paramount+ and Star+ have also increased their prices by up to 33.6%. Disney+ and Star+ are expected to launch cheaper plans with advertising in the coming months, a model already implemented by Max and Paramount+.

As a result of the growing dissatisfaction among users, there has been a boost in the participation of different companies, which offer alternatives to access audiovisual content by subscription at lower prices, as is the case of Vix Premium, favored by its approach of offering its streaming services at the same launch price and the possibility of accessing free content. 

In response to this, the consultancy points to the platforms' original proposals as the solution to this problem. "While streaming players are looking to have healthy financials that make their business model of delivering content directly to the consumer sustainable in the short term, they should not disregard the advantages that drove preference and engagement in this market," states The CIU. "That is, the offer of affordable, ad-free alternatives and lower economic barriers to engagement."