Kenya Among Countries Making Netflix Introduce Ads in its Pricing Plans
Posted on Monday, April 25, 2022
Author: Nelvin Polvin Nelvin
Netflix logo
Kenya is a fertilized growth for investment, and Netflix knew this when they expanded their market to this part of the world.
Late last year, Netflix announced its presence in Kenya, offering free streaming services for film lovers. “we’re launching a free plan that allows people to enjoy Netflix ad-free on Android mobile phones in Kenya. When you sign-up, no payment information is required,” it said.
The ad- free plan was Netflix's way of attracting the Kenyan audience to stream and download content on their platform with the hope that they would upgrade to paid plans.
“We hope it’s a great match and that many of the people who try our free plan love Netflix so much that over time they upgrade to a full, paid subscription.” They said in a statement in December 2021.
Now, Netflix wants to roll an advertising model on its platform. If you have watched videos on YouTube, listened to music on Spotify (freeby), you know how annoying ads can be. Yet due to losses Netflix is making, this introduction could save them.
Reed Hastings, CEO
However, this decision has not come easily. For over 25 years, Netflix has been hesitant to introduce ads to its platform. Reed Hastings, CEO of Netflix said on Tuesday, “Those who have followed Netflix know that I’ve been against the complexity of advertising and a big fan of the simplicity of subscription.” He also added, “But as much as I’m a fan of that, I’m a bigger fan of consumer choice.”
This move is supported by Netflix’s experimentation in the Kenyan and Indian markets. While Netflix is introducing ads, consumers who do not want them can subscribe to ad-free plans.
Even with successful penetration, Netflix’s subscriber base has declined over the years. This is blamed on the fact that many users share credentials when watching their favorite shows. There is also the issue of inflation and competition from the likes of Warner Bros and Disney.
While this is a plus on Netflix’s side, it also means subscribers can pay cheaper for plans with ads. However, we can all agree that most people are adamant.
B:Brian Khavalaji
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