Nubank’s Bundle Drives Growth in Max Subscriptions in Brazil

Warner Bros Discovery’s Max streaming service, which replaced HBO Max in Latin America in the first quarter of 2024, experienced a significant surge in subscribers following its launch. According to Ampere Analysis, the region as a whole saw a growth of 2.8 million subscribers year-over-year in the second quarter, marking a 13% increase. Among the Latin American countries, Brazil stood out by adding 1.2 million subscribers, a remarkable 22% growth and the largest gain in the region.

In Brazil, the introduction of Max propelled the service ahead of Prime Video and local giant Globoplay, securing its position as the third-largest streaming platform in the country. This achievement is notable as it brings Max closer to Disney+, which saw minimal subscriber growth after integrating the Star+ library into its service in Latin America during the second quarter of 2024.

Ampere Analysis suggests that Max’s success in Brazil can be attributed in part to its collaboration with the popular Brazilian online banking service, Nubank. While other markets witness a trend of streamers partnering with pay-TV and mobile operators, Max took a unique approach in Brazil by offering a complimentary one-year subscription to the ‘basic with ads’ tier through Nubank’s new subscription service, Nubank+.

Nubank, the largest online banking platform in the world outside of Asia, boasts over 92 million users in Brazil. Earlier this year, Nubank introduced its Nubank+ service, bundling Max from the outset. Customers spending over BRL3,500 (€568) on their Nubank credit card receive Nubank+ for free, while others can access the service for BRL29 per month, slightly below the current price of Max’s ‘basic with ads’ tier.

This strategic partnership with Nubank diverges from the conventional tactic of streamers aligning with traditional media leaders in other markets. While such partnerships serve as a lifeline for pay-TV operators grappling with customer attrition, the mutual benefits for streamers and pay-TV providers remain uncertain. In contrast, Nubank+ has the potential to reach millions of Brazilians, evident from Max’s substantial growth coinciding with the launch of Nubank+ in the same quarter.

Looking ahead, the challenge for Max lies in retaining these complimentary subscribers after the initial year, as highlighted by Debroah Polanco and Andrew Dougert, the authors of the Ampere Analysis report. The success of Max in Brazil underscores the significance of innovative partnerships and tailored strategies in expanding the reach of streaming services in diverse markets.