Kenya's streaming market is set for major competition as industry players pump more investments to increase their market share.
Previously dominated by global streaming platform Netflix, new entrants have since increased their penetration and overthrown the global brand.
Netflix, which had dominated over 40 percent of the African streaming industry, lost its position as the market leader to Showmax as competition heats up.
The latest player to join the multi-billion market is GOtv, after its sister brand DSTV also ventured into streaming mid this year.
MultiChoice Kenya managing director Nzola Miranda said that the firm is targeting the 30 million smartphone users with the streaming service.
“By 2027 the African streaming industry will be worth $2 billion (Sh306billion), we are looking to tap on the increasing use of smartphones in Kenya,” said Miranda.
With the influx of new competitors intensifying their strategies in the region, they are exerting pressure on market shares of various players, Netflix included.
Showmax has surpassed Netflix, securing the lead in the market with a subscriber base of 1.8 million.
Showmax CEO Marc Jury had earlier revealed a 26 percent year-on-year growth in paid subscribers over the past four years, attributing this success to a strong focus on local content production.
In a commitment to further bolster its presence, the company allocated $1 billion (Sh152.8 billion)to content production and acquisition in the African continent for the fiscal year ending 2023.
With the adoption of GOtv stream, the firm says it is looking to grow the video in demand offering in all its service offerings.
“GOtv Stream is not just another app, it is an extension of our commitment to deliver quality, convenience and control right into your hands. It is our way of saying we understand your needs and are here to meet them,"Miranda said.
According to data from Digital TV Research, an industry analytics firm, Africa had 41 million pay-TV subscribers at the end of 2022, with video streaming accounting for less than 10 per cent of the subscriber base.
Streaming players like Netflix and MultiChoice’s Showmax have deployed several growth tactics over the last three years, including splurging on new content and cutting subscription prices to win new customers, but the market has continued on it's slow pace.
