Globo, the Brazilian communications giant, plans to launch two streaming services. The Blue Ocean Strategy is a business concept according to which companies should find a way to work in a marketplace free from competition. Over the past five years, that’s exactly what Netflix has done in Brazil, however, since arriving in Latin America’s largest country, the streaming service has had virtually no serious competitors, until now that is. Netflix will now have competition from HBO and Globo – Brazil’s leading TV station since the 1960s.
Globo Play which was launched in 2015 is already operational as a service for cable TV customers relying on reruns of Brazilian soap operas. In recent months, Globo has decided to invest more in the service and develop a model similar to Netflix which doesn’t require cable subscriptions.
Globo has realized that streaming does not necessarily hurt its traditional TV ratings so in September they launched all episodes of a Brazilian series on their streaming service which didn’t translate into fewer viewers on TV.
The TV company has also developed a service called Telecine Play, currently a cable TV package available only to subscribers of premium movie channels. However, Telecine Play will provide fewer options than Netflix – only showing blockbuster movies from Hollywood’s biggest studios – and will cost more: $8.70 a month, compared to Netflix’s $5.80.
Just like Globo, HBO is studying ways to make its streaming service competitive. HBO will be available to customers who are not clients of cable TV. Their pricing will be the same as Telecine Play’s, $8.70.
In recent months, Netflix and HBO have started to produce their own Brazilian productions. On November 25, Netflix Brazil will launch its first original series, called “3%” a Dystopian Fantasy. Back in May, Netflix had announced a series based on “Operation Car Wash” for 2017.