Netflix will discontinue its free service in Kenya next month as part of its efforts to boost revenue amid heightened market competition.
In 2021, the streaming platform introduced a complimentary content access option for users in Kenya in a bid to tap into the country’s burgeoning streaming market. However, starting from November 1, the free plan will no longer be available.
The global streaming platform noted to its users that their memberships will be automatically cancelled when the free plan expires, encouraging them to explore the various premium subscription options. This decision follows Netflix’s earlier move to reduce subscription prices by 37% for Kenyan customers, as it faces increasing competition from rivals like Showmax and DStv.
Netflix’s expansion and strategy shift in Africa
Netflix’s growing presence in the African market can not be overemphasized. The streaming giant recognizes the potential for growth in Africa’s streaming landscape, driven by factors like increased internet access and a growing middle class.
Netflix initially offered free access in select African countries, including Kenya, as a strategic move to penetrate the market and attract a broader user base. They have since expanded their African content library, with locally tailored series and films like “Queen Sono” and “Blood & Water” gaining international acclaim.
The recent decision to discontinue the free service in Kenya signifies a shift towards a revenue-focused approach, prompting speculation about the streaming platform’s future plans in Africa. These may include expanding to more African countries, strengthening collaborations with African creators, investing in internet infrastructure, and adjusting pricing strategies to cater to the local market.
Competition in the African streaming market, with rivals like Showmax and DStv, is driving Netflix to explore strategic partnerships, potentially offering bundled services or exclusive content deals.
As the African streaming industry evolves, Netflix’s adaptability and innovation will play a huge role in capturing a significant share of this dynamic market. Watch for further developments and partnerships that could shape the future of streaming on the African continent.
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Netflix to hike subscription prices again
The streaming platform announced plans to increase the prices of its ad-free subscription tiers, starting with the United States and Canada, with the rest of the world to follow. Although the exact numbers have not been revealed yet, these changes are likely to add financial pressure on subscribers.
Currently, Netflix offers two ad-free plans: the Standard plan at $15.49 per month and the Premium plan at $19.99 per month. Earlier this year, Netflix discontinued its ad-free Basic plan, impacting cost-conscious users.
The rising subscription prices of streaming services like Netflix, Disney+, and Warner Bros. Discovery are causing consumers to reconsider their entertainment budgets. This trend reflects a broader shift in the entertainment landscape.
Streaming has transformed how people consume content, offering convenience but at a higher cost. As these prices continue to rise, the trade-off between convenience and affordability becomes more apparent. When you factor in expenses like movie tickets, video game subscriptions, and live events, the overall cost of entertainment for individuals and families can become comparable to traditional cable or satellite TV packages.
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