The Basic is set to go for ₦4,000, up from ₦3,500, and the Mobile plan is now ₦2,500, up from ₦2,200, as seen in the Punch.
This new adjustment comes after previous increases in July 2024, further pinching customers in a country dealing with economic contraction and rising inflation.
In July 2024, the Premium plan increased by 40% to ₦7,000 ($4.40), the Standard plan by 37.5% to ₦5,500 ($3.46), the Basic plan by 21% to ₦3,500 ($2.20), and the Mobile plan from ₦1,600 ($1.01) to ₦2,200 ($1.38).
Earlier in April of the same year, the streaming service announced a price increase for its Premium Plan, raising it from N4,400 to N5,000.
At the same time, the Standard Plan increased from N3,600 to N4,000, while the Basic Plan stayed at N2,900.
Nigeria's economy vs Netflix
The Nigerian economy has suffered significantly in recent years, with the country's currency, the naira, depreciating and consumer purchasing power plummeting.
With the country’s inflation continuing to increase, the cost of basic goods and services has risen, making discretionary spending, such as video streaming, more difficult to justify for many Nigerians.
Streaming subscriptions are more expensive in industrialized countries such as the United States and the United Kingdom, but customers often earn much more, making such services reasonably affordable.
For example, although Americans pay $15.49 (approximately ₦24,000 at current exchange rates) for Netflix's Standard plan, the average U.S. worker makes more than $60,000 per year.
Nigeria's minimum monthly wage is currently ₦70,000, with many earning significantly less in the informal economy.
This is more complex when you consider that Nigeria’s current minimum wage of ₦70,000 is merely $43, compared to its minimum wage of ₦30,000 as of 2022, which was $70 when exchanged at the average rate of ₦423.7 at the end of the year.
This dip highlights Nigeria’s declining purchasing power in the face of one of its worst economic periods.
This disparity in purchasing power parity (PPP) also demonstrates the increasing difficulties of developing global subscription models in poor nations.
As streaming platforms pursue profitability, they risk losing customers in price-sensitive areas such as Nigeria.
Unless updated price structures or regional considerations are applied, subscription-based services may see decreased popularity in places where economic hardship makes digital entertainment increasingly costly.
However, the increase in internet and mobile penetration currently sweeping the nation could work against the above argument.
Additionally, Africa as whole led by countries like Nigeria and South Africa has been a market of interest for the streaming giants.
In 2023, reports indicated that Netflix planned to expand its operations on the continent, following the success of its local content production ventures in the region.
From 2016 to 2023 Netflix had invested the equivalent of €160 million in film content production in Africa, creating over 12,000 jobs in Nigeria, Kenya, and South Africa.
However, as of the end of 2024, Netflix reportedly pulled out of the Nigerian market.
In a statement to TechCabal, Netflix denied the reports of its exit.
According to TechCabal, a Netflix spokesperson reaffirmed the company’s commitment to Nigeria, saying, “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.”
Over USD 23 million has been invested in Nigeria by the streaming service since 2016 in over 250 local licensed titles, co-produced and commissioned film content.
Netflix' investments has contributed $39 million towards GDP, $34 million towards household income, and $2.6 million towards tax revenue.
This new adjustment comes after previous increases in July 2024, further pinching customers in a country dealing with economic contraction and rising inflation.
In July 2024, the Premium plan increased by 40% to ₦7,000 ($4.40), the Standard plan by 37.5% to ₦5,500 ($3.46), the Basic plan by 21% to ₦3,500 ($2.20), and the Mobile plan from ₦1,600 ($1.01) to ₦2,200 ($1.38).
Earlier in April of the same year, the streaming service announced a price increase for its Premium Plan, raising it from N4,400 to N5,000.
At the same time, the Standard Plan increased from N3,600 to N4,000, while the Basic Plan stayed at N2,900.
Nigeria's economy vs Netflix
The Nigerian economy has suffered significantly in recent years, with the country's currency, the naira, depreciating and consumer purchasing power plummeting.
With the country’s inflation continuing to increase, the cost of basic goods and services has risen, making discretionary spending, such as video streaming, more difficult to justify for many Nigerians.
Streaming subscriptions are more expensive in industrialized countries such as the United States and the United Kingdom, but customers often earn much more, making such services reasonably affordable.
For example, although Americans pay $15.49 (approximately ₦24,000 at current exchange rates) for Netflix's Standard plan, the average U.S. worker makes more than $60,000 per year.
Nigeria's minimum monthly wage is currently ₦70,000, with many earning significantly less in the informal economy.
This is more complex when you consider that Nigeria’s current minimum wage of ₦70,000 is merely $43, compared to its minimum wage of ₦30,000 as of 2022, which was $70 when exchanged at the average rate of ₦423.7 at the end of the year.
This dip highlights Nigeria’s declining purchasing power in the face of one of its worst economic periods.
This disparity in purchasing power parity (PPP) also demonstrates the increasing difficulties of developing global subscription models in poor nations.
As streaming platforms pursue profitability, they risk losing customers in price-sensitive areas such as Nigeria.
Unless updated price structures or regional considerations are applied, subscription-based services may see decreased popularity in places where economic hardship makes digital entertainment increasingly costly.
However, the increase in internet and mobile penetration currently sweeping the nation could work against the above argument.
Additionally, Africa as whole led by countries like Nigeria and South Africa has been a market of interest for the streaming giants.
In 2023, reports indicated that Netflix planned to expand its operations on the continent, following the success of its local content production ventures in the region.
From 2016 to 2023 Netflix had invested the equivalent of €160 million in film content production in Africa, creating over 12,000 jobs in Nigeria, Kenya, and South Africa.
However, as of the end of 2024, Netflix reportedly pulled out of the Nigerian market.
In a statement to TechCabal, Netflix denied the reports of its exit.
According to TechCabal, a Netflix spokesperson reaffirmed the company’s commitment to Nigeria, saying, “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.”
Over USD 23 million has been invested in Nigeria by the streaming service since 2016 in over 250 local licensed titles, co-produced and commissioned film content.
Netflix' investments has contributed $39 million towards GDP, $34 million towards household income, and $2.6 million towards tax revenue.
By Chinedu Okafor, Business Insider Africa
Related story: Netflix cuts original Nigeria productions
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