Netflix has announced a revision of its subscription pricing for customers in Nigeria. From April 1, 2024, the Standard Plan will rise from ₦3,600 to ₦4,000, while the Premium Plan will be upped from ₦4,400 to ₦5,000. The Mobile Plan will jump from ₦1,200 to ₦1,600. However, the Basic Plan will remain at ₦2,900.
These pricing modifications follow Netflix’s global strategy to review subscription costs in various regions, enabling it to drive revenue and earnings. This strategy combines periodic price reviews with an expansion of content offerings.
Netflix has already begun to adjust prices in key global markets such as the United Kingdom, the United States, and France, where Basic and Premium Plans saw an increase in October 2023.
As the entertainment industry in Nigeria keeps growing, this strategic review is projected to support Netflix’s ongoing efforts to boost its market presence. The company, which invests in engaging regional content for subscribers, utilizes this pricing strategy to compete effectively and retain users.
While the effect of Netflix’s price increases on Nigeria’s consumer market remains uncertain, the company will seek to justify these changes through its growing library of exclusive content, films, and television shows.
In a separate announcement, Netflix’s co-CEO, Ted Sarandos, confirmed that the video-streaming company will start testing its ad-supported plans. These plans, already launched in various countries including the US, UK, and Canada, offer more affordable subscription options for viewers willing to watch commercials. However, they are yet to be introduced in Nigeria.
The ad system will implement commercials expected to last between 15 and 30 seconds, playing both before and during videos.
According to a report Netflix released in Q4 2023, the company’s revenue increased by 12% and 13.12 million new subscribers were added, bringing the total subscriber count to 260 million. Notably, 5.05 million of the new subscribers came from Europe, the Middle East, and Africa (EMEA).
As per reports from November 2023, Netflix held 35% of Africa’s market share, while Showmax had control of a slightly larger share at 40%.
