Consumers are groaning over the continuous increment of subscription prices by the popular streaming service, Netflix.
Taking to his X account, one Okeoghene,@terhso, a Netflix user tweeted “Seven thousand naira monthly is a lot. They just increased it to 5,000 not too long ago. How many subscriptions does a person want to pay? We are going through a lot.”
Another consumer, Edward Israel-Ayide added, “As content becomes more expensive to consume, users will seek alternatives. In a country where content piracy is mainstream, these alternatives will most likely be illegal download and streaming sites.”
However, the streaming company has said that the high inflation and the naira’s devaluation have impacted their business operations in the country forcing them to adjust prices.
This decline in the naira’s value has exacerbated the operating environment for businesses while eroding Nigerians’ purchasing power.
In April, Netflix raised its premium plan from N4,400 ($2.76) to N5,000 ($3.14). Its standard plan went from N3,600 ($2.26) to N4,000 ($2.51), and the mobile plan rose to N1,600 ($1.01) from N1,200 ($0.75). The price review didn’t affect the basic plan, which remained at N2,900 ($1.82).
The streaming platform has recently made a 40% increment in its subscription prices. According to a post on its website, the premium plan now costs N7,000 ($4.40), up from N5,000 ($3.14). The standard plan has also increased from N4,000 ($2.51) to N5,500 ($3.46). The mobile plan now costs N2,200 ($1.38), while the basic plan is now priced at N3,500 ($2.20).
Netflix’s lower price band has increased by 83.33 per cent, and its higher price band has jumped by 59.09 per cent in less than six months.
The company stated that it offers a range of prices and plans to meet a wide range of needs, delivering more value to its members. The company also said that it occasionally asks them to pay a bit more.
While the company didn’t explicitly mention currency fluctuations, it explained during the prior price change that price changes are made to respond to local market changes, such as changes to local taxes or inflation.
“As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect those improvements, which in turn help drive the positive flywheel of additional investment to improve further and grow our service,” the company told investors in its recent shareholders’ note.