As part of its efforts to increase revenue in the face of fiercer market competition, Netflix plans to end its free service in Kenya next month.
In an effort to capitalise on Kenya’s expanding streaming industry, the streaming platform announced a gratis content access option for subscribers in that country in 2021. The free plan won’t be accessible any more as of November 1.
“On November 1, 2023, the Free Plan will no longer be available, and your membership will end. If you want to cancel, no action is required. Your membership will be automatically cancelled when the free plan ends,” reads the email sent to subscribers.
“If you want to keep watching, upgrade to one of our paid plans. Starting from as low as Sh200 per month, you can unlock all shows and movies, more features and the option to watch on your phone, TV or laptop.”
The international streaming service encouraged consumers to investigate the various premium subscription alternatives by informing them that their subscriptions would automatically be cancelled when the free plan expired.
Following a previous effort to lower membership costs by 37% for Kenyan consumers, Netflix has now made this choice in response to growing competition from rivals like Showmax and DStv.
Read also: Netflix to increase subscription prices again
Why Netflix operates in Kenya
The head of the Content Team for Netflix Kenya, Ben Amadasun, shared the reason Netflix has decided to operate in Kenya and how the timing fits.
“The short story is, we’re here to listen and learn from the various valued local stakeholders in the Kenyan film industry. As part of our strategy in every market we’ve focused on the world over, we first start by learning more about the industry and how it operates and identify opportunities for collaboration with local storytellers and stakeholders within the creative industry ecosystem.”
“We’ve done the same in South Africa and Nigeria and, as we have always stated, we’ve had our eye on Kenya, and now we want to get to know a bit more about the industry – starting with the critical stakeholders like the Kenya Film Commission and others. There will be many other engagements with more stakeholders to come – this is just one of the many firsts. We’re also exploring the many ways we can collaborate with various industry stakeholders in terms of skills enhancement and capacity building to ensure there’s a pipeline of amazing talent in the industry.”
“Overall, we’re at the beginning of our journey in Africa as a whole – we’re the tip of the iceberg, there are amazing storytellers and content creators in Kenya and the rest of the continent. Ultimately, we want Netflix to be at the top of the mind for Kenyan creators when it comes to stories they haven’t seen,” he added.
Netflix’s strategy for growth in Africa
The streaming giant is aware of the opportunities for expansion that exist in Africa’s streaming landscape, opportunities that are being driven by factors such as the expansion of the continent’s middle class and improved internet access.
Netflix first provided free access to its service in a number of African nations, Kenya being one of them. This was done as a strategic move to break into the market and attract a larger user base. Since then, they have increased the amount of African content in their repertoire, which now includes locally produced series and films that have received widespread critical acclaim, such as “Queen Sono” and “Blood & Water.”
The streaming platform’s recent decision to stop offering its free service in Kenya is interpreted as a move toward an approach that is more focused on generating income. This interpretation has prompted discussion about the streaming platform’s future plans in Africa. These may include expanding into additional African countries, strengthening relationships with African creators, investing in African internet infrastructure, and altering pricing methods to adapt to the needs of the local market.
Due to the intense competition in the African streaming market from companies such as Showmax and DStv, Netflix is investigating the possibility of entering into strategic collaborations. These agreements could involve the provision of bundled services or exclusive content deals.
Netflix’s capacity for adaptation and innovation will play a big part in the company’s success in grabbing a sizeable portion of Africa’s rapidly expanding streaming market as that industry continues to develop. Keep an eye out for new developments and partnerships that might have an impact on the direction that streaming will take in the future on the African continent.
