Netflix, the American streaming giant, has once more increased its subscription fees for Nigerian users, marking the second hike within four months. The previous price increase occurred on April 1, 2024.
According to Netflix’s official website, the cost of the Premium subscription tier has risen to ₦7,000 (approximately $4.40) per month, up from ₦5,000 ($3.14), reflecting a 40% increase. The Standard plan, popular for its high-definition content and multi-screen streaming, now costs 5,500 Naira ($3.46), a 37.5% increase from the previous ₦4,000 ($2.51).
The Basic plan has also seen a price hike, rising 21% from ₦2,900 ($1.82) to ₦3,500 ($2.20) per month. Meanwhile, the Mobile plan, Netflix's most affordable option, has increased from 1,600 Naira ($1.01) to 2,200 Naira ($1.38). These adjustments come at a time of significant economic hardship in Nigeria, further straining subscribers.
The 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 products and services in the country has surged, forcing many individuals to prioritise essential needs over luxury items.
Price Hike Raises Concerns Among Subscribers
The recent price hike by Netflix has raised concerns about the continued affordability of its service for Nigerian customers. As subscription costs rise, more households find entertainment options like Netflix increasingly out of reach.
In April 2024, Netflix adjusted its pricing for Nigerian subscribers, increasing the Premium Plan from ₦4,400 (approximately $2.76) to ₦5,000 (about $3.14). The Standard Plan saw an increase from ₦3,600 ($2.26) to ₦4,000 ($2.51), and the Mobile Plan rose from ₦1,200 ($0.75) to ₦1,600 ($1.01). The Basic Plan remained unchanged at ₦2,900 ($1.82).
Netflix explained that the price adjustment is part of a global strategy to recalibrate pricing structures, aiming to enhance revenue and earnings growth. The company noted that periodic price increases support the continuous expansion of its content library, a strategy also seen in major markets like the United States, the United Kingdom, and France.
Facing a decline in subscriber numbers and increased competition from streaming services like Showmax, Netflix is making strategic adjustments. Co-CEO Ted Sarandos announced the testing of a new, lower-priced subscription tier that includes advertisements, called "Basic with Ads." This move, a significant shift from Netflix's traditional ad-free model, aims to attract a broader audience and address competitive pressures.
Similarly, Showmax, a major player in the video streaming market in January 2024 unveiled new pricing for its revamped platform, aimed at enhancing service offerings and user experience. However, just six months later, in July 2024, Showmax announced another round of price increases for all its subscription packages, except the Premier League package.
The move aligns with a broader industry trend where streaming platforms are adjusting pricing structures to fund content acquisition, production, and technological upgrades while remaining competitive in a crowded market. Exempting the Premier League package from the price hike seams to be a strategic decision to retain subscribers who value football content. By keeping the price steady for this popular package, Showmax aims to leverage the appeal of Premier League football to maintain and grow its subscriber base despite the overall increase in subscription fees.
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