Streaming services grow in the pandemic, but supply collides with inflation

In 2021, the percentage of internet users paying for video platforms was 43% and 19% for audio. Classes A and B have higher rates of paying, 71% for movies and series and 41% for listening to music.

The data are from the ICT Covid-19 Panel, made by Cetic.br (Regional Center for Studies for the Development of the Information Society), which monitors behavior on the internet.

“The main consumer of this type of service is young and more educated”, says Catarina Segatto, information analyst at Cetic.br. She says she sees the possibility of growth in the sector, and one of the reasons is the increase in the offer of content.

The greater number of platforms, in turn, leads to more competitiveness, says Márcio Rodrigo Ribeiro, professor of cinema and audiovisual at ESPM.

It is a challenge for companies, which need to keep accounts up to date in a scenario of high inflation, he says.

Streaming movies and series: Netflix

Company studies the use of advertising to make plans cheaper

In April, Netflix announced a drop of 200,000 subscribers in the first quarter of 2022, the first decline recorded in the indicator in a decade.

With the fall, the company did not reach the goal of 2.5 million users established for the period.

The unstable scenario led the company to talk for the first time about including advertisements on its platform, as part of cheaper plans, which should be announced in the last quarter of this year.

Remembered by 62% of respondents in Datafolha’s O Melhor da Internet 2022 survey, Netflix was elected as the best streaming service to watch movies and series.

“To win over the consumer, the platforms became popular with plans at low prices and subscriptions to share. Now they need unpopular measures, such as resizing prices to balance the accounts”, says Márcio Rodrigo Ribeiro, from ESPM.

In 2021, the investment in advertising made by the main video platforms increased by 243%, compared to 2019, according to the Inside Video 2022 survey by Kantar Ibope.

The survey also shows an increase in the number of televisions connected to the internet, which rose from 49% in 2020 to 57% in 2021. However, the largest share of video consumption still comes from linear broadcasters, 79%, while digital platforms add up to 21%.

Ribeiro, from ESPM, explains that despite the popularity of series and movie releases, Brazilian consumers are still very much attached to television stations, which is also due to the inequality in the distribution of good quality broadband access in the country. .

Netflix
62% of the mentions
Foundation
1997, in Brazil since 2011
Thirst
Los Gatos (CA), USA
users
222 million subscriptions worldwide
Digital Channels
website, app and social networks (Facebook, Twitter, Instagram and TikTok)

Music streaming: Spotify

Platform bets on the growth of podcasts and audiobooks

Spotify announced this month that it expects to reach revenue of US$100 billion annually, worldwide, in 10 years, with a high margin of return for expansion in podcasts and audiobooks.

The platform was chosen as the best streaming for listening to music by 29% of respondents in the Datafolha survey.

The consumption of podcasts has grown in the national audience according to a survey by IAB Brasil (Interactive Advertising Bureau), an association that brings together digital advertising companies.

In 2021, 35% of Brazilians with internet access listened to podcasts three or more times a week.
Among the main motivations for following content are delving into topics of interest (53%), gaining knowledge (48%) and following news (40%).

In 2021, 89% of internet users in Brazil claim to have listened to music on online services and 62% followed audio or video broadcasts in real time, according to data from the ICT Covid-19 Panel, carried out by Cetic.br.

“Listening to music online is one of the behaviors that cover the highest percentage of internet users. But the profile of those who pay for content and use streaming platforms reflects inequalities in the country”, says Catarina Segatto, from Cetic.br.

For Roberta Pate, Spotify’s operations leader in Latin America, it is crucial for the brand to be a free platform [com anúncios]where listeners have access “to music from around the world and over 4 million podcasts”.

Spotify
29% of the mentions
Foundation
2008
Thirst
Stockholm, Sweden
users
422 million per month, worldwide
Digital Channels
Website, app and social networks (Instagram, Twitter and Facebook)

UNDERSTAND THE RESEARCH

• The survey that gives rise to the articles in this special section was carried out by Datafolha and had two modules, with two different surveys, one on Brazilians’ favorite brands for services involving the internet and another on their online behavior.
• The brand survey reflects 1,500 interviews conducted between March 21 and 28, 2022, with Brazilians aged 16 and over, from all social classes and regions in Brazil, who access the internet every day. The survey’s margin of error is three percentage points, and its reliability is 95% – this means that if 100 surveys like this were done, in 95 the results would be within the margin of error.
• The survey on Brazilian online behavior reflects 2,064 interviews conducted between March 16 and 24 with Brazilians aged 16 and over, from all social classes and regions of the country. The margin of error is two percentage points, considering a confidence level also of 95%
  

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Distance university: Estacio

Industry expansion benefits from information technology

Continuous investment in data analysis increases student engagement with the university at a distance, says José Aroldo Alves Júnior, vice president of Digital Education at Yduqs, the holding company that manages Estácio.

The company was elected by the Datafolha survey as the best distance learning university, with 5% of mentions. Of the total sample, 54% of respondents did not know or did not remember any online institution.

“We have algorithms working all the time, measuring from financial data to how long the student studies, to try to predict how long he will stay on the platform”, he says.

Today, Estácio makes the same content available in different formats, audio, video and text, so that the student can choose, says the manager. For him, the next step is to develop tools that can indicate to the student the best learning path, according to their behavior within the platform.

The 2020 Higher Education Census, released in 2022 by Inep (National Institute of Educational Studies and Research Anísio Teixeira) showed an increase in interest in distance education in the last decade, in 2010 the percentage of newcomers to the modality was 17.4% of the total , rising to 53.4% ​​in 2020.

Between 2019 and 2020, the number of EaD entrants also increased, growing by 26%, while the face-to-face modality fell by 13.9%.

“The university needs to encourage student commitment and, by looking at the data, you can see points for improvement”, says Sólon Caldas, executive director of the Brazilian Association of Higher Education Maintainers.

The manager sees the investment in data analysis as an industry trend, to expand and combat the dropout rate in distance education, which is higher than that recorded in face-to-face courses. “Each institution is free to outline the best operational strategy, but it must always be attentive to the General Data Protection Law.

Estácio
5% of the mentions
Foundation
1970
Thirst
Rio de Janeiro – RJ)
users
500 thousand, in May 2022
Digital Channels
website, social networks (Instagram, Facebook, LinkedIn and TikTok), as well as Telegram and WhatsApp groups

Real estate buying and selling website: OLX

Buying and selling real estate has a hybrid journey

The journey of those who are looking for a new home is a hybrid, whether for purchase or rent. A selection of properties begins online, price quotes, locations and only then goes to face-to-face, with the support of brokers and companies, says Vicente Penter, Technology Director of the Brazilian Association of the Real Estate Market (ABMI).

The opinion is shared by the president of OLX Brazil, Andries Oudshoorn. For the executive, both consumers and advertisers seek agility, information and security.

With 8% of mentions, OLX was elected as the best site for renting and selling real estate in Datafolha’s O Melhor da Internet 2022 survey. Most respondents (71%) could not answer.

“We don’t want to be a real estate company, but we help connect stakeholders in the real estate market,” says Andries.

He says that OLX became popular with ads connecting the consumer to the buyer, but they have invested in strengthening the relationship with real estate companies.

Since 2020, the company has also owned the Zap Imóveis and Viva Real platforms. In addition, it provides consultancy and services such as automated pricing by Data Zap, the data intelligence arm of OLX Brasil.

Real estate represents the largest share of OLX’s profit, followed by automobiles and consumer goods, the company does not disclose the percentage of profitability of each segment.

For Penter, from ABMI, digitalization has transformed the real estate market, initially restricted to the location of companies, which had knowledge about a certain coverage area. With the internet, nationwide platforms such as Loft and Quinto Andar have gained prominence.

Keeping up with the pace of technology investment is one of the main challenges for smaller companies, he says. In this scenario, regional real estate companies can benefit from platforms that bring together advertisers, as is the case with OLX.

Penter says that, for ABMI, the sector expects growth in companies that bet on technology.

Investment in startups in the construction and real estate market moved BRL 5.8 billion between May 2021 and May 2022, according to data from the 6th Map of Construtechs & Proptechs, carried out by Terracotta, a company that invests in construction technology and real estate market.

The research also shows that, in the last six years, the number of startups in the sector has grown by 282%.

OLX
8% of the mentions
Foundation
2010 (OLX Brazil)
Thirst
Rio de Janeiro – RJ)
Digital Channels
Website, app and social media (Facebook, Instagram, YouTube, Twitter, LinkedIn and TikTok)