The new agreement for Canal+ to carry Netflix to subscribers in Sub-Saharan Africa will help the streamer secure another 8.2 million subscribers.
Ampere Analysis says that just as APAC emerged as the battleground for new subscribers in the late 2010s, attention has now turned to Sub-Saharan Africa.
From next month, Canal+ subscribers will be able to access Netflix directly through their pay TV platform across 24 French-speaking markets in Sub-Saharan Africa, including as Ivory Coast, Senegal and Cameroon. Bundled packages will be available at a discounted rate, like the scheme already enjoyed by Canal’s subscribers in France and Poland.
According to Ampere, Netflix currently has around 4.5 million subscribers in the region, representing less than 2% of its subscriber base. The reasons are multiple and include the dominance of pay-TV; the high price of OTT services relative to local income level, and low Internet connectivity.
Netflix remains at the higher end of the price range for SVOD services locally, with an average revenue per user (ARPU) of approximately $5.70, compared to $2.90 for MultiChoice’s Showmax, a leading regional SVOD with 1.45 million subscribers.
However, up to now Netflix has not been presented as part of a discounted bundle, making the new arrangement with Canal of further advantage. Although Netflix is already the leading service in the region, the new deal is likely to benefit it further.
