American Technology and Media service giant, Netflix Inc has concluded plans to introduce cheaper, mobile-only subscription in Nigeria and the rest of Africa in order to strengthen its presence in the country and the region as a whole in a move which appears targetted at Showmaxx’s dominance in the continent.
This is in addition to commissioning more locally produced contents and shows that depict the cultures and experiences of ordinary Africans.
Netflix Inc. became the world’s largest subscription-streaming service by flooding the market with popular content that’s cheaper than the competition. However, 5 years after it got introduced in Africa, the United States company is struggling to grow beyond the wealthiest segment of the population, in a continent held back by poverty, piracy and limited access to broadband.
This is expected to greatly increase the competition for the African market with Showmaxx, the Multichoice subsidiary, which seems to be clearly ahead and has the majority of the market share because of its more local and African content. It could also help increase its presence in the continent where it is struggling and is still a relatively small player
According to Digital TV Research, the streaming service firm has only 1.4 million subscribers when compared to about 20 million customers that have been signed up to Multichoice Group Ltd, the leading African pay-TV firm.
With the rapid expansion of 4G mobile networks, the streaming service is given a new channel to get to audiences especially in a country like Nigeria, sub-Saharan Africa’s biggest economy and the heart of its TV industry.
Netflix plans to expand the mobile-only contracts permanently if the trials, which began in South Africa and Egypt, becomes a success. It agreed to deals with South African wireless carriers to add subscriptions to people’s phone bills and offers pre-paid vouchers for those without bank accounts. This is similar to the services that have been adopted by Showmax, MultiChoice’s streaming service.
Netflix is offering subscribers N1,200 ($2.65) a month for its mobile-only service, well below the N2,900 it’s been charging for its most basic account. However, the offer is still more expensive than the N250 per month charged by Iroko TV, a streaming platform that has the largest online catalogue of Nigerian Nollywood content giving access to over 5,000 of such movies.
But the income from Iroko’s low-price plans hasn’t been enough to cover its costs and the company is now scaling back its African operation to focus on wealthier viewers in the diaspora.
Netflix’s has moved to avoid the low production values found in a lot of Nollywood output and channel the continent’s best talent to develop slickly-made shows across every genre just like its deal with well-funded producers like Nigeria’s EbonyLife TV.
According to RBC Capital Markets analyst, Mark Mahaney, it expects to massively increase its subscribers to 500 million customers by 2030, up from 193 million as at the end of June.
Instagram disables its “Recent” feature
Instagram recently announced it had removed the “recent” tab from hashtag pages on a temporary basis
Instagram disclosed that it would remove the “Recent” tab from its hashtag pages for people in the United States of America.
The social networking and video sharing service stated this on its official Twitter handle. It said it is “doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.”
Starting today, for people in the U.S. we will temporarily remove the “Recent” tab from hashtag pages. We’re doing this to reduce the real-time spread of potentially harmful content that could pop up around the election.
— Instagram Comms (@InstagramComms) October 29, 2020
What you should know
Nairametrics had reported on Instagram’s apology for its algorithm malfunction that led to the flagging of #EndSARS posts as fake.
Instagram has also taken the following measures to ensure a successful November election.
- The registration of 4.4 million votes this year through its flagship platform – Instagram and Messenger.
- Serving as a means of information and tool to people in the US on the electoral process
- The ban of any content that can thwart the success of the election.
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Mark Zuckerberg, the CEO of Facebook, said he was perturbed about the high risks for civil unrest in the US due to the upcoming presidential election.
“I’m worried that with our nation so divided and election results potentially taking days or weeks to be finalized, there is a risk of civil unrest across the country.”
Furthermore, he disclosed on a call while discussing Facebook’s Q3 earnings, that “given this, companies like ours need to go well beyond what we’ve done before.”
Why this matters
The aim of the short-term decision is to decrease the spread of misinformation in the forthcoming US election.
Edlyft raises over $1.4 million venture capital during pandemic
Edlyft raised over $1.4 million in venture funding from a number of investors.
Edlyft, an EdTech startup, has so far raised over $1.4 million in venture funding from a number of investors.
The investors include Kleiner Perkins, Y Combinator, Kapor Capital, Village Global VC, January Ventures, and Backstage Capital. Also, funding came from some respectable entrepreneurs such as Jeff Weiner (former CEO, now Executive Chairman of LinkedIn).
It is practically impossible to run a business without capital, and sometimes, it is difficult to raise funds if the business is not well managed or successful.
Therefore, a balance must be struck; just as businesses strive to raise more funds for different purposes such as expansion, they must also strive to remain profitable.
Commenting on the latest development, one of the co-founders of the group, Erika Hairston told Forbes:
“We started our post-demo-day fundraise in the final weeks of Y Combinator’s winter 2020 batch. Given that Black women receive only 0.06% of venture funding, I had a determined mindset; yet no one could’ve predicted the challenges of rising at the peak of uncertainty across the globe.
“I remained optimistic however because due to pandemic and children and young people not being able to go to schools and universities, our work only became that much more needed in the world.”
She added, “Initially, it felt impossible to build new relationships with institutional funds who didn’t already know us or who weren’t focusing only on their portfolio. As the world adjusted to fully remote, so did we and the investor community. One of the fun facts about our fundraising journey is that 10% of our investors came solely from introductions over Twitter.”
What you should know
Edlyft is a paid support platform that helps college students and adult learners through CS courses, by pairing them with inclusive mentors, online group tutoring, and tools for navigating complex subjects.
Venture capital is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
Biggest IPO: World’s biggest Fintech plans to raise $34 billion
Ant Group has begun the process of a concurrent initial public offering in what could mark one of the biggest IPOs of 2020.
The world’s payment juggernaut, Ant Group, is hoping to raise $34.5 billion in its dual initial public offering (IPO) after setting the price for its shares today, making it the biggest listing of all in modern history, in a report credited to CNBC news.
The Chinese financial powerhouse had earlier disclosed previously that it would divide its stock issuance equally across Chinese major stock exchanges, which include Shanghai and Hong Kong, issuing 1.67 billion new shares at each of those exchanges.
Ant Group’s Shanghai-listed shares will be quoted at 68.8 yuan each. The issuing of 1.67 billion shares would raise 114.94 billion yuan or $17.23 billion.
- The Hong Kong-listed shares have been priced at 80 Hong Kong dollars each, raising 133.65 billion Hong Kong dollars or $17.24 billion.
- The listing would produce a return of at least $34.5 billion, as the figure could go higher if the so-called over-allotment option is exercised, depending on demand.
- It would make it the largest initial public offer of recent memory, putting it ahead of previous record-holder Saudi Aramco, which raised about $29 billion.
What you should know
Ant Group, formerly known as Ant Financial and Alipay, is an affiliate company of the popularly known e-commerce company Alibaba.
- Ant Group remains the world’s most valuable FinTech company, and most valuable unicorn company, with a target valuation of over US$280 billion.
- The group owns China’s largest digital payment platform, Alipay, which serves over one billion users and 80 million merchants, with total payment volume (TPV) transaction reaching RMB118 trillion in June 2020.
Explore Data on the Nairametrics Research Website