Netflix has announced a price increase for its services in Nigeria, marking a significant change for its subscribers in the country. Starting this week, customers opting for the premium plan, which offers 4K + HDR quality and allows downloads on up to six devices, will now have to pay ₦5000, a noticeable rise from its previous rate. Similarly, the standard plan, which provides access to HD content and permits downloads on two devices, has seen an increment from ₦3600 to ₦4000. However, the basic plan, offering standard definition viewing and one download device, remains unchanged at ₦2,900. In addition, the mobile plan, tailored for viewers who prefer streaming on their mobile devices, has also experienced a price hike.
This adjustment in pricing is part of a broader strategy by Netflix, as the streaming giant has been revising its subscription costs globally since October of the previous year. This global revision comes alongside the platform’s decision to discontinue its free trial offering in Kenya, which had been in place for two years, as part of its efforts to streamline services and focus on paid subscriptions.
Netflix’s rationale behind these price increases is to support its ongoing investment in improving the platform’s content and services. “As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” the company explained in a statement. This approach underlines Netflix’s commitment to enhancing the viewer experience through continuous content development and platform upgrades.
Significantly, Netflix has been a major player in content production within sub-Saharan Africa. Since 2016, the company reports it has invested approximately $175 million in film content production across the region, contributing to the creation of over 10,000 jobs during this period. This substantial investment not only underscores Netflix’s commitment to fostering local talent and storytelling but also highlights its role in the economic development of the creative industry in Africa.
Despite these investments and its position as a key content provider, Netflix faces stiff competition in the African streaming market. As of the end of November 2023, Netflix is estimated to have secured about 1.8 million subscribers in Africa, translating to approximately 33.5% of the market share. This places Netflix in the number two spot among streaming platforms on the continent, demonstrating both its significant impact and the competitive landscape it operates within.
The price adjustments in Nigeria reflect Netflix’s strategy to balance its investment in content and services with sustainable business practices. By recalibrating its pricing structure, Netflix aims to ensure that it can continue to offer high-quality, diverse, and engaging content to its subscribers in Nigeria and beyond, while also expanding its reach and influence in the global streaming marketplace.
