Sony will close Crackle in Mexico and all of Latin America in April
Despite the progress made in recent years, replete with alliances with third parties, Sony has decided that the Crackle platform for Latin America is "economically unviable".
The platform had 400,000 subscribers in the 17 countries in which it operated. With the closure will be dismissed 17 people from offices based in Miami, Los Angeles, Mexico, Brazil, Argentina and Colombia.
The figures were there all the time: in The CIU's latest report on the streaming market in Mexico, Crackle was not even among the main contenders. Their participation was limited to the "other" segment that includes the smaller platforms, whose total market share is 1.2 percent.
The segment has grown by leaps and bounds, from 7.4 million active accounts in the second quarter of 2017 to 8.3 million in the third quarter of 2018, but at the same time the reach of Netflix has also grown: in Mexico eight out of ten subscriptions Video streaming services are for the platform.
Netflix's business in Mexico is equivalent to more than six million accounts, far from the 400,000 total of Crackle that, instead of paying a monthly subscription, used the platform under a model of advertising.
Crackle Latin America has remained independent of the business of its counterpart in the United States, so that the division of the neighboring country will remain intact. The version of Crackle in the United States does not depend on advertisements, but it is a subscription similar to that of Netflix or Prime Video.
Sony's decisions could set an important precedent, and underscore the well-known market trend: users prefer to pay for a monthly fee to consume content, than to be exposed to commercials.
The disappearance of Crackle Latin America will be effective as of April 30, 2019.