Netflix, the world’s largest streaming video service, has announced a significant reduction in subscription prices for its Kenyan subscribers in response to increasing competition. The company is offering a 37% average discount on its subscription prices to incentivize new subscribers and maintain current ones.
The basic plan will see the sharpest reduction, falling to Sh300 from Sh700, representing a 57% reduction. In contrast, subscribers to mobile, standard, and premium packages will see savings of 33%, 36%, and 24%, respectively. New members will immediately benefit from the reduced prices, while existing subscribers will see the changes in their next billing cycles.
The move comes as Netflix faces growing competition from rivals such as Amazon Prime Video and South African-based internet video streaming service Showmax. The entry of Showmax into the Kenyan market in 2020 has intensified competition for the company, which is also bracing for more rivalry if other streaming services, such as Disney+, Hulu, Peacock, and Star+, venture into the local market.
In addition to price cuts, Netflix has previously offered a free mobile plan, and a paid-mobile only plan, as well as partnering with local telecom operators to ease payments. The company is now banking on new shows and films, set to premiere in the coming months, to drive new subscriptions and expand its market share.
Digital TV Research forecasts that streaming TV subscriptions in Africa currently constitute a small market. However, the research firm predicts that Netflix will lead the subscription video-on-demand services sector on the continent, with an estimated 6.26 million paying customers in 2026. With new subscriber sign-ups in more saturated markets such as the US on the decline, Netflix is focusing on adding more customers in other regions, including Africa.
In a statement, Netflix expressed its commitment to continuously finding ways to enhance its members’ experience on the platform. The company aims to provide a vast range of high-quality TV shows and movies at an even more reasonable cost to its subscribers.