Netflix raises subscription fees again for Nigerian users within four months during economic hardship

Netflix, the American company renowned for its subscription-based video streaming service, has once again raised its subscription fees for customers in Nigeria. This latest increase represents the second instance within a span of four months that the company has adjusted its prices upward, with the previous hike having taken place on April 1, 2024.

The most recent adjustment is reflected on Netflix’s official website, where the cost for the Premium subscription tier is now listed at 7,000 Nigerian Naira (equivalent to approximately $4.40) per month. This is a significant jump from the former rate of 5,000 Naira (around $3.14), translating to a 40% increase in price.

Additionally, the Standard subscription plan, which is favored by many Nigerian subscribers for its provision of high-definition (HD) content and the ability to stream on multiple screens simultaneously, has seen its price rise to 5,500 Naira (approximately $3.46). This marks a 37.5% hike from the previous price of 4,000 Naira (about $2.51).

The Basic subscription plan, previously priced at 2,900 Naira ($1.82), has experienced a 21% price increase and will now cost subscribers 3,500 Naira ($2.20) per month. Meanwhile, the Mobile plan, which is the most affordable subscription option offered by Netflix, has undergone a price revision from 1,600 Naira ($1.01) to 2,200 Naira ($1.38).

This announcement of Netflix’s price increase comes at a particularly challenging economic period for Nigerians, who are already facing severe financial strain. The cost of a wide array of products and services in the country has surged, forcing many individuals to prioritize essential needs over luxury items.

As a result of Netflix’s latest price hike, it remains uncertain how many Nigerian customers will continue to subscribe to the service. The escalating costs of subscription plans are making entertainment options such as Netflix increasingly inaccessible for a growing number of households in Nigeria.

In April 2024, Netflix implemented a price adjustment for its Nigerian subscribers, which saw the Premium Plan’s cost rise from 4,400 Naira (approximately $2.76) to 5,000 Naira (about $3.14). Concurrently, the Standard plan experienced an increase from 3,600 Naira ($2.26) to 4,000 Naira ($2.51), and the Mobile plan’s price was set at 1,600 Naira ($1.01), up from 1,200 Naira ($0.75). Notably, the Basic Plan’s price remained unchanged at 2,900 Naira ($1.82).

Netflix provided an explanation for its decision to revise its subscription fees, stating that it was part of a broader strategy to recalibrate its pricing structure across different regions with the aim of enhancing revenue and earnings growth. The company highlighted that this initiative was in line with its approach to periodically increase prices to support the continuous expansion of its content library. This strategy has also been observed in some of Netflix’s major markets, including the United States, the United Kingdom, and France.

In response to a challenging period characterized by a decline in subscriber numbers and heightened competition from rival streaming services such as Showmax, Netflix has made a strategic shift. Ted Sarandos, the Co-CEO of Netflix, confirmed that the company is set to test a new, lower-priced subscription tier that will include advertisements, named “Basic with Ads.” This marks a significant departure from Netflix’s traditional ad-free model and is a move designed to attract a broader audience and address the competitive pressures facing the streaming service.

Similarly, Showmax, a competitor in the video streaming market, disclosed new pricing for its revamped platform in January 2024. The company sought to enhance its service offerings and user experience, which necessitated a revision of its subscription fees. However, within a relatively short period of six months, in July 2024, Showmax announced another round of price increases for all its subscription packages, with the exception of the Premier League package.

This move by Showmax reflects a trend in the streaming industry where platforms are adjusting their pricing structures. These adjustments are often driven by factors such as the need to invest in content acquisition and production, technological upgrades, and to remain competitive in a market where consumers have multiple options for streaming content.

The decision to exempt the Premier League package from the price hike could be a strategic one, aimed at retaining subscribers who are particularly interested in football content, which is a significant draw for many viewers. By maintaining the price of this specific package, Showmax may be looking to leverage the popularity of Premier League football to sustain and potentially grow its subscriber base in the face of overall price increases.