Details have emerged of plans by global streaming giant Netflix to make subscription payments easier for viewers in countries including Kenya, Nigeria and South Africa,
Citing low credit card penetration on the continent, Netflix Head of Africa Originals Dorothy Ghettuba disclosed details of partnerships being undertaken with telcos in a bid to offer an improved experience.
Working with telcos including Telkom and Vodacom South Africa, Netflix has already launched mobile-only subscription packages in Nigeria, South Africa and Egypt. The move has allowed the company to leverage on the firms’ existing subscriber bases and payment infrastructure.
Speaking on Tuesday, October 20 ahead of announcement of the company’s Third Quarter Results, Ghettuba disclosed that Netflix had its sights set on Kenya as the next market where they plan on partnering with telcos.
“Given the low credit card penetration across the continent…we have partnered with local telcos…for their customers to be able to add Netflix subscriptions to their bills,” she told Reuters.
Analysts have pointed at Safaricom as a likely beneficiary of the planned partnership, owing to its massive subscriber base and the ubiquitous M-Pesa payments platform.
According to data from the Communications Authority (CA), Safaricom had more than 25 million subscribers using M-Pesa in 2019, with transactions running into billions of shillings.
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It is expected that any potential partnership would make it possible for Kenyans to pay for Netflix subscriptions using M-Pesa. The introduction of comparatively cheaper mobile-only Netflix packages, as witnessed in Nigeria and Egypt, has also been touted as a possibility.
In Nigeria, for instance, a mobile-only subscription package costs $2.50 (Ksh250) while the classic package costs $7.50 (Ksh750).
The company has notably initiated a push to increase African content available on the platform. The drive initiated in May dubbed ‘Made In Africa, Watched by the World’, has so far seen several productions from across the continent added to the streaming service.
This includes two Kenyan movies; Sincerely Daisy (2020) and Disconnect (2018) which have stirred a buzz in local film circles.
The plan to increase Netflix subscribers in Africa from the current 1.4 million out of 193 million globally also factors in other challenges; such as slow internet speeds and high cost of mobile data in some African nations.
The company is said to be exploring Wi-fi downloads to enable users to watch movies and shows later as opposed to using costly mobile data.
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