Showmax displaces Netflix as top market leader
By Kingsley Odii
South African video streaming service provider, Showmax, has emerged as the dominant player in the African streaming market, surpassing Netflix in market share.
Recent reports indicate that Showmax holds 40% of the African streaming market, while Netflix’s share has slipped to 35%.
This shift in dominance reflects the growing competition in the region, primarily fueled by Showmax and Amazon Prime. Showmax’s CEO, Marc Jury, highlighted the company’s impressive growth, boasting a 26% year-on-year increase in paid subscribers over the past four years.
To solidify its position, Showmax has strategically invested $1 billion in content production and acquisition in Africa, with a focus on enhancing its local content offerings. This approach has catapulted Showmax to the forefront, despite entering the African market in 2016 and starting with only a few hundred thousand subscribers.
Netflix, on the other hand, has encountered challenges from both local and global competitors. While the streaming giant has added 1.2 million subscribers in the last four years, the aggressive local content strategy and regional focus of Showmax have propelled its growth.
The African streaming market is projected to grow by 10.4% annually, and other platforms are expected to capture a significant portion of Netflix’s waning subscriber base. Challenges such as high broadband costs, unstable internet connectivity, and low incomes have hindered the growth of the streaming market in Africa.
While South Africa continues to be Netflix’s largest market, accounting for 73.3% of its subscriber base, the streaming giant acknowledges the potential for expansion across Africa.
Netflix has adopted a dual strategy, licensing local content such as Nigeria’s “Black Book” and producing original content like “The Origin: Madam Koi-Koi.” This approach has come at a cost of $175 million over six years, with South Africa benefiting from the majority of the licensing revenue.
Despite challenges like low credit and debit card penetration in many regions, which impede subscriber growth, 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. However, with Showmax’s continuing growth and investment in local content, the competition is expected to intensify further.
RECOMMENDED ARTICLES
Comment
No comments found.