Netflix turns to telecoms tie-ups in challenging African markets

© Reuters.

By Duncan Miriri
NAIROBI, Oct 20 (Reuters) - Netflix Inc NFLX.O is showing
more African-made content and working with telecoms operators to
make it easier for potential subscribers to make payments, a
senior executive told Reuters ahead of its third-quarter results
on Tuesday.
The online content streaming giant, which has 193 million
subscribers globally, is keen to expand in Africa and is seeking
ways to overcome challenges including slow and expensive
internet and the lack of proper payments infrastructure in the
55-nation continent.
"Given the low credit card penetration across the continent
... we have partnered with local telcos ... for their customers
to be able to add Netflix subscriptions to their bills," said
Netflix's head of original programming for Africa, Dorothy
Ghettuba.
She said they already have partnerships with Vodacom
VODJ.J and Telkom South Africa TKGJ.J , adding that Netflix
is looking for further tie-ups.
Expensive high-speed internet in some countries is also a
key challenge, Ghettuba said, adding that Netflix is trying to
address that by allowing wi-fi downloads for later viewing
rather than use pricey mobile data for streaming.
Netflix, well established in South Africa and Nigeria, is
now looking towards the Kenyan market, Ghettuba said.
The pay TV market in Africa is dominated by South Africa's
Multichoice Group MCGJ.J , which has an edge over Netflix from
its dozens of channels dedicated to news and live sports events.
The South African group, in addition to its entertainment
channels showing films, series and documentaries, has also
started online streaming service Showmax to compete directly
with Netflix.
To improve its appeal in the market, Netflix has been
boosting its library with African productions. "The business is excited about Africa and is putting every
effort behind it," said Ghettuba, who joined Netflix last year
after a decade running a Kenyan production house.
Ghettuba declined to specify the value of Netflix's
investments in Africa, but the company has agreed a slew of
content-licensing deals with African producers in markets
including Senegal, Ghana, Zimbabwe, Angola and Mozambique.

(Editing by Katharine Houreld and David Goodman)