Video streaming competition intensifies as Netflix slashes prices

 Netflix. (Courtesy)

Streaming service provider Netflix has lowered it's pricing in Kenya and Sub-Saharan. Because of its functional user interface and low bandwidth requirements, the video streaming platform is one of the most popular video-on-demand platforms in Africa, making it accessible to a large number of users.

However, many users thought that the recent price increase for its plans, with the highest tier costing Sh1450, was excessive. Some resorted to using the free mobile version or the cheapest available plan to gain access to the entire catalog of shows in Kenya for Sh300 on mobile.

Netflix subscribers on the basic plan will see the biggest price drop on their next billing cycle, with charges dropping to Sh300 from Sh700. Subscribers to mobile, standard, and premium packages, on the other hand, are expected to save money as prices drop from Sh300, 1,100, and Sh1,450 to Sh200, Sh700, and Sh1,100, respectively.

"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 will benefit from the lower prices immediately, while existing subscribers will see the changes in their subsequent billing cycles.

However, other changes have been made by Netflix as it now has a new CEO and higher revenues. The company does, however, intend to crack down on password sharing, which it claims has resulted in significant revenue loss.

The new prices come as Netflix, the market leader in video streaming, competes for subscribers despite falling subscriptions last year. In addition 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 growth strategy.

To make payments easier, Netflix has created a paid-mobile-only plan and formed partnerships with local telecom operators and expects new shows and films to premiere in the coming months to drive new subscriptions.

In Kenya, Netflix is competing with Amazon Prime Video and Showmax, a South African-based internet video streaming service that entered the Kenyan market in 2020. Showmax provides its service to mobile users and customers who want to stream games, among other things.

Showmax's mobile plan now costs Sh300, making it more expensive than Netflix's mobile plan. The basic Showmax plan costs Sh760, and the Pro plan, which includes games and live TV channels, costs Sh2100 or Sh1050 for mobile-only access.

Many customers who found the platform too expensive are likely to welcome the price changes. The rivalry between Netflix and Showmax is also expected to heat up, with both platforms offering unique features and pricing.

Africa is currently a small market for streaming TV subscriptions, with Digital TV Research projecting that Netflix will lead subscription video-on-demand services on the continent with 6.26 million paying customers in 2026.