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Netflix Set to Change Pricing Structure for Nigerian Subscribers from April 1, 2024
Netflix, a popular streaming platform, has geared up to change the pricing structure for the Nigerian audience.
This initiative will take effect on April 1st, 2024. The change in pricing structure is not restricted to only Nigeria, it will also be effective in other regions as time passes. The change is a strategy for increasing Netflix’s revenue and earnings. This strategy incorporates occasional price reviews with an increase in content offerings.
Netflix Changes Nigeria’s Pricing Structure
From April 1, 2024, the Nigerian plans will take effect: Standard Plan will rise from ₦3,600 to ₦4,000. The Premium Plan will be increased from ₦4,400 to ₦5,000, while the Mobile Plan will jump from ₦1,200 to ₦1,600. However, the Basic Plan will remain at ₦2,900.
The change in the pricing structure has become effective in some regions since last October. These regions are key markets for the streaming platform. They include the United Kingdom, France, and the United States. These regions experienced hikes in fees in the basic and premium plans.
Netflix Pricing Change To Drive Revenue
The hike is expected to increase the company’s earnings and enhance its presence in the country. However, the response of Nigerian subscribers is unknown yet, as this is the first time the company is changing its price structure. However, with the increase comes more engaging content and expansion of movies on the platform.
It should be noted that as of November 2023, Showmax reportedly controlled 40% of the African market while Netflix controlled 35%. However, Netflix will rely on its growing content, films, and shows to justify the change in pricing. This will get the subscribers hooked and willing to go further with the platform.
Netflix Adds Ad-Supported Plans
There are other more affordable subscription options, but they are presently not available in Nigeria. The ad-supported plans provide the user with an affordable subscription fee. The 15- 30 second ads are expected to run before and during the films. It is available in the US, UK, and some other countries.
With these changes in price structure, Netflix released a positive report in the fourth quarter of 2023.
The company saw its revenue and earnings increase by 12%. Additionally, it added 13.12 million new subscribers, which brings its total subscribers to 260 million. Note that 5.05 million of the new subscribers were notably from Europe, the Middle East, and Africa (EMEA).
