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Streaming in Brazil Final Customers Identification

Customers Categorization

In the Brazilian streaming value chain, the final customers primarily fall into two main categories: Business-to-Business (B2B) and Business-to-Consumer (B2C).

B2B Customers: These are businesses that utilize streaming services or related technologies to serve their own customers or enhance their operations. In the context of the provided value chain analysis, B2B customers are not the end consumers of the entertainment content itself, but rather businesses that interact with other players in the value chain. Examples include:

  • Advertisers and Advertising Agencies: These businesses purchase advertising space on AVOD and FAST streaming platforms to reach their target audiences.
  • Telecommunication Companies (Telcos) and Retailers: These companies partner with streaming platforms to bundle streaming services with their core offerings (e.g., internet plans, mobile plans, e-commerce subscriptions) to attract and retain their own customers. This creates a B2B2C relationship where the telco or retailer is the direct customer of the streaming platform, and the end consumer is a customer of both.
  • Other Streaming Platforms or Content Aggregators: In some cases, smaller platforms or aggregators might license content from larger players or utilize their technology infrastructure.
  • Businesses Utilizing Streaming for Internal Purposes: While not explicitly detailed in the provided text, some businesses might use streaming for internal communications, training, or events.

B2C Customers: These are the individual end-users who directly consume the streaming content for entertainment, information, or other purposes. They are the final recipients of the value created by the entire chain. Examples include:

  • Subscribers to SVOD Services: Individuals who pay a recurring fee to access a library of content (e.g., Netflix, Prime Video, Globoplay, Max, Disney+).
  • Users of AVOD/FAST Services: Individuals who watch content for free in exchange for viewing advertisements (e.g., YouTube, ad-supported tiers of Netflix and Max, Pluto TV).
  • Purchasers/Renters of TVOD Content: Individuals who pay a one-time fee to rent or buy specific movies or shows (e.g., through platforms like Google Play Filmes or transactional options on other services).

Detailed Report on Final Customers Categorized into B2B and B2C Segments

Based on the value chain analysis, the final customers are predominantly the B2C segment, the individual consumers of streaming content. However, the B2B segment plays a crucial role in enabling the delivery and monetization of these services.

The B2B customers in the streaming value chain primarily interact at the Monetization & Marketing and Distribution & Delivery steps. Advertisers and agencies engage with platforms for AVOD/FAST monetization. Telcos and retailers form partnerships for bundling, acting as intermediaries to reach B2C customers. Technology providers like cloud services and CDNs are also B2B players, but their customers are the streaming platforms themselves, not the final content consumers.

The B2C customers are the focus of the Customer Access & Consumption step. They are the individuals who subscribe, watch ad-supported content, or make transactional purchases. Their engagement and consumption drive the revenue for the platforms and, consequently, the entire value chain.

Detailed Profiles of Customer Characteristics and Demographics

The Brazilian streaming market is characterized by a large and diverse B2C customer base with specific habits and preferences.

B2C Customer Characteristics and Demographics:

  • Large and Growing User Base: Brazil has a significant internet penetration with 165 million residents connected to the internet. Around 70% of the Brazilian population has at least one streaming subscription. Approximately 31.1 million individuals accessed paid video platforms in 2022.
  • Active Online Shoppers and Content Consumers: Brazilians are active online shoppers and spend a considerable amount of time online, including using social media, streaming TV and music, and playing games. They subscribe to an average of 4.2 to 8 streaming services, indicating a strong appetite for diverse content.
  • Cost-Conscious Audience: Brazilian consumers are sensitive to price, and cost is a significant factor influencing their subscription decisions. A considerable percentage of Brazilians have canceled SVOD subscriptions due to cost concerns, and there is a growing preference for free or ad-supported models. Sharing login credentials with family and friends is also a common practice to save costs.
  • Preference for Mobile Consumption: A significant portion of television viewing, including streaming, occurs on mobile devices in Brazil. Mobile commerce also accounts for a large share of online sales.
  • Diverse Content Preferences: Brazilian viewers have diverse content preferences, showing interest in genres like horror, reality television (such as Big Brother Brasil), talk shows, and a blend of Mexican soap operas and Japanese doramas. They are also willing to consume dubbed and subtitled content. While international content is popular, there is also a demand for local and regional content.
  • Influence of Customer Experience and Promotions: Brazilian consumers are discerning and value customer experience, pricing, discounts, and free shipping when making online purchasing decisions.

B2B Customer Characteristics:

  • Advertisers and Agencies: These customers are looking for effective ways to reach specific demographic segments of the Brazilian population who are engaged with streaming content. The growth of AVOD and FAST channels provides them with new advertising inventory.
  • Telcos and Retailers: These businesses are seeking to add value to their core offerings, attract new customers, and reduce churn by bundling popular streaming services. They leverage their existing customer base and billing relationships. Vivo, a major Brazilian telecommunications company, has a significant number of B2B customers and is expanding its digital solutions in this area.
  • Other Businesses: Businesses utilizing streaming internally would have varying needs depending on their size, industry, and intended use case (e.g., corporate communications, training).

Understanding these characteristics is crucial for players in the Brazilian streaming market to tailor their content offerings, pricing strategies, marketing efforts, and technological infrastructure to meet the demands and preferences of both their B2C and B2B customers.

References:

  • How digital payments drive Brazil's economic transformation – Thunes.
  • Introduction to Brazil's digital landscape - myNZTE.
  • Streaming Culture & Consumer Behavior in Brazil - Wordbank.
  • Brazil eCommerce Market: Top Stores, Revenue & Market Trends - ECDB.
  • Brazil's Vivo eyes B2B cloud expansion with IPNET buy | M&A | TelcoTitans.com.
  • Boost B2B Activity in Brazil with Online Marketplaces - Biz Latin Hub.
  • Brazil Ecommerce Market Opportunities Databook 2024: An US$ 87.6 Billion - GlobeNewswire.
  • E-Commerce in Brazil: An In-Depth Analysis of Digital Growth and Strategic Approaches for Online Retail - MDPI.
  • Brazil Social Commerce Market Databook 2024 - A US$ 10.65 - GlobeNewswire.