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How does SVOD pricing vary in the US vs. Canada?
Hello! Thanks for your question about How SVOD pricing varies in the US vs. Canada. The short version is that the prices are largely the same, and in a few instances Canadian services could be considered cheaper due to the exchange rate. Below you will find a deep dive of my findings.
METHODOLOGY
To answer this question I looked at a number of SVOP providers that operate in both the U.S. and Canada and compared their prices. For a more robust analysis, I also visited trusted websites where further insights could be gained. The comparison is broken down by SVOP providers below, starting with Netflix.
NETFLIX
In both the U.S. and Canada, Netflix has 3 packages: Basic (7.99), Standard (9.99), and Premium (9.99). The main difference between the three is how many screens can be watching at once (1, 2, or 3) and the image quality (standard, HD, or Ultra HD). Because they are priced the same in respective dollars, this effectively means that Netflix is "cheaper" in Canada, as the Canadian dollar is worth less than the American dollar.
ACORN TV
Acorn TV costs $4.99 per month or $49.99 per year in U.S. dollars, regardless of whether you are buying in the U.S. or Canada. With the current exchange rate, this is $6.74 CAD. The price is then effectively the same, though Canadians may be charged at a marginally higher rate depending on the type of currency conversions charged.
DRAMAFEVER
DramaFever is charged in U.S. dollars in both the U.S. and Canada. It is free for a basic account with ads. Idol Premium costs $4.99 per month or $49.99 per year, and Superstar Premium $9.99 per month or $99.99 per year. Again, though the prices are the same, Canadians may pay a marginally high rate depending on how currency conversions are calculated.
CURIOSITY STREAM
Curiosity Stream has three plans all charged in U.S. dollars: Basic ($2.99 per month), Standard ($5.99 per month), and Premium ($11.99 per month). You save 16% by paying annually instead of monthly. Again, though the prices are the same, there may be a small difference for Canadians based on how currency conversions are charged.
CRACKLE
Though not a subscription service, Crackle is worth mentioning as a media service. Crackle is free in both the U.S. and Canada. They make their money by showing ads, rather than charging a monthly or annual subscription fee. So this is the same for both U.S. and Canadian residents.
SVOD MARKET IN U.S. AND CANADA
There is a huge rise in the use of SVOD services in Canada, driven by the availability of content. This has suggested that demand may push for higher prices. In fact, this study polled over 3000 Netflix users in the U.S. and Canada showed that 39.1% said they would pay $12 - $15 per month, 8.4% would pay $16-$19 per month, 6.5% would pay $20-$23 per month, 3% would pay $24-$27 per month, 1.7% would pay $28-$31 per month, and 1.4% would pay $32 or more per month.
However, though demand in quality content is driving subscriptions, and though it has been shown that prices are general the same between the two markets, this does not mean that all is even. U.S. and Canadian customers do not have access to the same content when they subscribe, so though they pay either the same or less for the service, it is not the same content that they receive.
COMPETITIVE MARKET
Though demand is high, competition is also fierce, with Canadian SVOD provider Shomi closing in late 2016. Before the closure, a price war broke out, with competitor Crave lowering its prices to undercut both Shomi and Netflix.
CONCLUSION
To wrap it up, there is not any difference in price for either U.S. or Canadian consumers of SVOP services. However, this is dependent on exchange rates and does not take into account the difference in content supplied by providers in the different markets. Thanks for using Wonder! Please let us know if we can help with anything else!