Showmax overtakes Netflix in battle for Africa's streaming market

Key Takeaways

The African streaming market is expected to grow annually by 10.4%, and other platforms are projected to capture a significant portion of Netflix's slowing subscriber base. Challenges such as high broadband costs, unstable internet, and low incomes have contributed to the slow growth of the streaming market in Africa. While South Africa remains Netflix's largest market, accounting for 73.3% of its subscriber base, the streaming giant acknowledges the growth potential in Africa. Netflix has adopted a dual strategy of licensing local content, such as Nigeria's "Black Book," and producing original content like "The Origin: Madam Koi-Koi." Over six years, this approach has incurred a cost of $175 million, with South Africa receiving the majority of the licensing revenue. Despite challenges like low credit and debit card penetration hindering subscriber growth in many regions, Netflix's price reduction initiatives in some markets have led to a 6.8% increase in subscribers and a revenue boost exceeding $135 million in 2022.