Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
Stanbic IBTC
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Tech News

Netflix moves against Showmaxx, introduces cheaper mobile only subscription in Nigeria, Africa

Netflix plans to expand the mobile-only contracts permanently if the trials become a success.

Published

on

Netflix users increase by 16 million in Q1 2020

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.

READ: Buhari insists “no kobo” of foreign exchange will be issued for food imports

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

READ: UK-based group invests $425 million in Nigeria, impacts about 100 businesses

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.

READ: P&ID dispute: UK Court orders $200 million guarantee to FG

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.

READ: MultiChoice in another pay-as-you-view tussle with Reps

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.

bitcoin train

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.

Binance

READ: School Feeding Programme: We found N2.6 billion in private accounts – ICPC

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.

Jaiz bank ads

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement




Advertisement

Nairametrics | Company Earnings