Nigerian subscribers struggle to keep up as Netflix increases subscription prices

Netflix has recently announced an update in its pricing structure for its Nigerian subscribers. This is the second time the streaming giant has updated its prices this year. 

According to a recent notice sent to their customers, the platform announced that its premium plan, currently priced at ₦5,000 ($3.14) will now cost ₦7,000 ($4.40). The standard plan has also been increased from ₦4,000 ($2.51) to ₦5,500 ($3.46), the mobile plan now costs ₦2,200 ($1.38), while the basic plan is at ₦3,500 ($2.20).

The streaming platform also revised its subscription prices for Nigerian subscribers in April of this year. The  Premium plan was hiked to ₦5000 ($3.14) from ₦4,000 ($2.76), while the standard plan rose from ₦ 3,600 ($2.26) to₦4,000 ($2.51). The mobile plan was increased to ₦1,600 ($1.01) from  ₦1,200 ($0.75) while the basic plan remained at ₦2,900 ($1.82).

At the time, Netflix claimed to have a broader strategy to revise its subscription rates for various subscribers across various regions. According to the company, these changes were intended to boost revenue and earnings growth, following their strategy of periodic price increases to support the expansion of content offerings. 

In the past year, the streaming giant has adjusted prices in its key markets, including the United States the UK and France.

With the evolution of streaming platforms, Netflix's pricing strategy reflects its efforts to balance being a competitive platform and providing engaging content for its viewers. 

After years of maintaining an ad-free platform, the company confirmed it would begin testing ad-supported, a lower-priced subscription tier. This decision is likely influenced by the challenging year Netflix has faced, including competition from other streaming platforms and losses in its subscribers.

The new ad-supported plan known as “basic with ads” has been launched in various countries, offering a more affordable subscription option for subscribers willing to watch ads and commercials.

This review can be traced to the recent devaluation of the Naira, as Nigerians struggle with rising inflation and high living costs. With declining spending power and a shrinking middle class, payments for streaming platforms like this will become less of a priority for most Nigerians.