Netflix chops subscription prices by 37pc as rivalry up

Netflix chops subscription prices by 37pc as rivalry up. FILE PHOTO | POOL 

By KEPHA MUIRURI More by this Author

Streaming service provider Netflix has cut subscription prices for its Kenyan subscribers by 37 percent on average in the wake of increasing competition as it moves to incentivise new and maintain current subscribers.

Subscribers on Netflix’s basic plan will see the sharpest drop in prices on their next billing cycle as charges fall to Sh300 from Sh700.

In contrast, subscribers to mobile, standard and premium packages are expected to realise savings of 33, 36 and 24 percent respectively as prices fall to Sh200, Sh700 and Sh1,100 respectively from Sh300, 1,100 and Sh1,450 respectively.

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“We are always exploring ways to improve our member’s experience on Netflix. Our goal is to offer a wide variety of quality shows and films at an even better value,” said Netflix.

New members who sign up are set to enjoy the lower prices immediately while continuing subscribers will see the changes in their next billing cycles.

The revised prices come as Netflix, the market leader in video streaming battles rivals for subscribers on the backdrop of falling subscriptions last year.

Locally, Netflix is taking on Amazon Prime Video and South African-based internet video streaming service Showmax with the latter having joined Netflix in the Kenyan market from the onset in 2020.

Externally, Netflix has been staring at more competition should other streaming services including Disney+, Hulu, Peacock and Star+ venture into the local market.

Further to the price cuts, Netflix has previously moved to entice new subscribers, offering a free mobile plan in 2021 with about a quarter of its TV shows and movies in Kenya as a strategy to spark growth for the company.

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The world’s largest streaming video service has been looking to add customers outside its more saturated markets such as the US where new subscriber signups have been on a slump.

Additionally, Netflix has created paid-mobile only plan and partnerships with local telecom operators to ease payments.

Netflix is betting on new shows and films which are set to premiere in the coming months to drive new subscriptions.

Africa currently represents a relatively small market for streaming TV subscriptions with data from Digital TV Research for instance projecting Netflix will lead subscription video-on-demand services on the continent with 6.26 million paying customers in 2026.

→ kmuiruri@ke.nationmedia.com