Where is the Next Big Growth Opportunity for Streaming Services?  

Global streaming services are facing a significant challenge: growth has stalled in many markets, forcing them to seek new avenues for expansion. Some, like Netflix and Disney, hope to boost revenues by cracking down on password-sharing. Other streamers are looking for growth by bundling. Warner Bros Discovery (owner of HBO Max) and Disney (owner of Hulu) recently announced a new package to capture subscribers in an increasingly competitive attention economy. And all this is happening in the context of a cost-of-living squeeze, impacting consumers’ willingness to pay for multiple subscriptions.   

Audience growth is available, but it lies in emerging markets like Africa, a region that many Western media executives have yet to consider. Africa is on the verge of a viewing avalanche, with the population expected to double by 2050, when the International Monetary Fund predicts it will account for over 25% of the global population. Importantly, these will be young consumers, with 60% under 25. They will be hungry for programming and new ways to watch it, in sharp contrast to the West, where aging populations may lead to stagnant technology adoption rates. Africa’s youth bulge presents a dynamic market eager for digital entertainment solutions. These are mobile-loving audiences, with some 613 million in sub-Saharan Africa – about half the region’s population – subscribing to mobile services.  

However, for streamers, growth in Africa is about more than demographics or devices. African content is a booming industry, making it a fertile land for streaming services. Nollywood – Nigeria’s film industry – is the second largest in the world by output, with over 2,500 movies annually. (It trails India’s Bollywood, but out-produces Hollywood.) And while early Nollywood content had a DIY video production quality, these shows and films have become increasingly sophisticated. Fuelled by new efficiency-saving technologies such as AI, the Nigerian film industry is honing its technique, expanding out of comedies and dramas and into horror, historical dramas, musicals and animation.  

Prophet has been working with Showmax, a joint venture between South African broadcaster MultiChoice Group, American media conglomerate Comcast, and Peacock, the streaming platform from Comcast’s NBCUniversal subsidiary – to expand service across Africa. Combining reality, drama and sport with local output in multiple markets, Showmax is expected to reach almost four million subscribers by 2029. From this work, we’ve developed five critical lessons for successfully launching streaming services that will captivate and delight African audiences:  

1. Local Content Is King  

American hits may create evergreen content libraries across the pond, but African audiences are most interested in local content produced in local languages for local audiences. (Sorry, “Sopranos,” “Game of Thrones,” and “Stranger Things.”)  Africa is rich in cultural diversity, with thousands of ethnic groups having unique traditions, languages and stories. Local content that taps into this diversity can resonate deeply with viewers by reflecting on their lived experiences, cultural nuances and societal values. Whether it is the “The Real Housewives of Nairobi” or “Cheta M,” a Nigerian Showmax original exploring young lovers who battle spiritual and political forces in their way, original African stories by local talent are the overwhelming favourites. And just as K-pop, Nordic noir and Brazilian telenovelas find fans well beyond national borders, these regional African narratives resonate with larger audiences, offering the entire continent a wider representation of people, places and perspectives.   

2. Mobile-First Optimization  

Optimizing streaming services for mobile viewing is crucial in all markets, but it is especially important in Africa, given the continent’s unique technological and market characteristics. Because of its limited fixed broadband infrastructure and the relative affordability of mobile technology, mobile devices are most Africans’ primary internet access point. A mobile-optimized service enhances engagement by improving usability on smaller screens and adapting to variable mobile data conditions. This approach aligns with the lifestyle of Africa’s young, tech-savvy population, who often consume content on the go. And it provides a competitive edge in a market where mobile connectivity is a norm.  

Streaming brands need to act now to capture these audiences, diving into local market needs to develop a deep understanding. Customer centricity is essential: Only companies that immerse themselves in Africa’s varied and nuanced markets will be able to develop the strategies, offers, pricing and content required to win with increasingly sophisticated African audiences.

Tosson El-Noshokaty, Partner at Prophet 

3. Cheap, Creative Access  

Effectively launching in multiple African markets requires a telecom partner that can provide cheap data, attractive bundles – or both. This makes it easier for a broader audience to access streaming services, increasing adoption. The economic landscape in many African countries is characterized by lower average incomes than in Western nations. Budget-friendly data options make streaming services more attractive and feasible for regular use. Going to market with a strategic partner also creates a competitive advantage. Offering these services through fractional pricing is another tool adopted by African streamers. Rather than monthly subscriptions, providing weekly or fortnightly tiered packages with different bundle offers can make a difference, maximizing accessibility and adoption.   

4. Direct Sales Impact  

Direct Sales Forces (DSFs) drive sales across Africa, capitalizing on over 90% of transactions conducted in cash. Unlike markets dominated by digital marketing and online sales, the African landscape often requires a tangible, on-the-ground presence to effectively reach and engage consumers. DSFs are crucial for navigating these unique market dynamics, including limited internet penetration and the preference for face-to-face interactions. DSF teams provide personalized customer service, handle cash transactions safely and build trust within communities, essential for converting potential customers into subscribers. Additionally, DSFs help educate customers about product offerings and troubleshooting, which is vital in regions where digital literacy is still developing.  

5. M-Pesa mobile money   

Cash is king in Africa, with sub-Saharan African credit and debit card penetration rates low at 3% and 18%, respectively. However, M-Pesa – an innovative mobile phone-based money transfer service – allows users to deposit, withdraw, transfer money, pay for goods and services, and access credit and savings, all with a mobile device. With over 50 million monthly active users, M-Pesa’s widespread adoption highlights the need for streaming services in Africa to integrate mobile payment options and a complex suite of payment providers, including card, PayPal and other mobile money solutions. These various payment integrations ensure seamless accessibility and convenience for users.