The news:
- Netflix has announced an update to its pricing structure for Nigerian customers.
- The subscription video streaming service said that its Standard Plan, currently priced at ₦3,600, will see an upward review to ₦4,000 starting on April 1, 2024.
- While the Basic Plan will stay the same at ₦2,900, the Premium Plan, which offers Ultra HD quality and four multiple screens, is priced at ₦5,000 from ₦4,400, and the Mobile Plan, which was ₦1,200, will be ₦1,600
The price revision is consistent with Netflix's broader strategy to review its subscription fees across several regions to drive revenue and earnings, employing a pattern of content expansion offerings and periodic price reviews.
Netflix has since commenced price adjustments in key markets across the globe, including the United Kingdom, the United States, and France. Basic and Premium Plans in the locations experienced hikes in October 2023.
As the Nigerian entertainment market continues to experience growth, the precise review strategy is expected to bolster Netflix’s continued effort to enhance its presence in the country.
Netflix, which invests in engaging content in the region for its subscribers, is employing the pricing strategy to compete effectively and keep its users hooked.
Although the price increases haven’t been significant thus far, it’s not clear how they will impact Nigeria's consumer market. To justify the additional cost, Netflix will rely on its growing library of exclusive content, films and television shows.
In another development, Netflix's co-CEO, Ted Sarandos, has confirmed that the video-streaming company will begin testing its ad-supported plans.
The ad-supported plans, which have since launched in various countries, including the US, UK, and Canada, but are not available in Nigeria yet, offer subscribers willing to watch commercials more affordable subscription options.
The commercials, expected to run between 15 and 30 seconds, run before and during videos.
Per a report Netflix released in the fourth quarter of 2023, the company saw its revenue increase by 12% and added 13.12 million new subscribers, bringing its total subscribers to 260 million. 5.05 million of the new subscribers were notably from Europe, the Middle East, and Africa (EMEA).
Be the smartest in the room
Give it a try, you can unsubscribe anytime. Privacy Policy.
As of November 2023, Netflix reportedly held 35% of the African market, with Showmax controlling 40%.
