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Netflix Enters the Kenyan Market

BY Soko Directory Team · January 7, 2016 06:01 am

Netflix, an American worldwide provider of on-demand internet streaming media has now landed in Kenya and the giant entertainment provider DStv has a tough competition ahead as well as other players in the field.

Not only has the company commenced its services in Kenya officially but has also set the ball rolling in South Africa, Nigeria, as well as in 127 other countries.

The good news about Netflix is that one is able to watch TV shows, drama, action movies, comedy as well as documentaries on TV, computer, mobile phone and tablet without limit of time.

One interesting feature also is that Netflix has no ads and commercials within programs and customers can watch their favorites uninterrupted unlike other platforms.

The service offered by Netflix is available in three packages. The Basic package which is 817 shillings, the Standard package which is 1,022 shillings and the Premium package 1,226 shillings with a 30 day free trial.

This is going to pose a very serious competition on such pay TV companies as DStv and Startimes. They are surely going to lose a good number of their customers to the new entrant into the market. Just recently, DStv came under the wrath of subscribers when the company increased its prices for the packages with the Premium package attracting 9,400 shillings. Netflix is offering the same package at 1,226 shillings. That is a difference of 8,174 shillings.

Startimes on the other hand, despite the fact that it has been cheaper than DStv, subscribers have been complaining on the quality of services being offered as well as having a generally weak signal strength especially in the rural areas.

One distinct feature that accompanies the launch of operations of Netflix in Kenya is that, not only customers are the beneficiaries but also other internet providers like Zuku, JTL as well as Safaricom. People who will subscribe to Netflix services will also subscribe to services from these companies simply because Netflix works effectively on broadband as well as fiber and the prices are cheaper when one is live streaming.

There are some limitations of using the services from Netflix though. Other competitors in the field can capitalize on this and reclaim their usual position. For instance, one need a constant internet in order to access services from Netflix. DStv and Startimes use set boxes and one needs no internet to access their services. Another disadvantage is that some common titles such as Orange is the New Black as well as House of Cards are not available on Netflix but only on DStv because it is the only one that has the rights to air the content.

Customers who have already subscribed to other services like DStv are waiting to see what their service provider will to in reaction to the new player into the market. Maybe they might decide to lower their prices as a way of maintaining their current customers but one thing remains clear, the world of choices is now wider for the consumer.

For a complete listing of countries where Netflix is available, you can click here.

 

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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