Showmax overtakes Netflix in battle for Africa's streaming market
Showmax has reportedly surpassed Netflix to become the leading paid video streaming service in Africa, capturing a 40% share in the African streaming market, according to Omdia Research. In contrast, Netflix's market share has slipped to 35%, reflecting the increasing competition in the region. The shift is attributed to the rise of competitors like Showmax and Amazon Prime.
Marc Jury, CEO of Showmax, highlighted the company's significant growth, experiencing a 26% year-on-year increase in paid subscribers over the last four years. Showmax has strategically invested $1 billion in content production and acquisition in Africa, with a focus on strengthening its local content offerings.
While Netflix entered Africa in 2016 and initially gained several hundred thousand subscribers, it now faces challenges from both local and global competitors, with Showmax's emphasis on regional content contributing to its current market leadership.
Points clés à retenir
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.