The world over, subscription services are a trend and Africa is not left out. From entertainment streaming to food delivery, more African consumers use these services in response to their changing needs. The growth of subscription services in Africa is becoming more obvious and there are factors responsibe
In this article, we will explore the boom in subscription services on the continent: why this growth has occurred, what type of subscriptions are increasing to becoming more popular with African consumers, and how they connect them easier access to greater productivity. Hopefully, by the end of this post, you will understand why everyone wants to start a business following such a model in African markets.
Common Types of Subscription Services
Here are a few of the high-selling niches.
#1. Streaming services
African culture is very entertaining and due to the influx of Internet (made more affordable) in Africa, people are now subscribing to platforms like Netflix, Showmax, Spotify etc. They allow watching movies, streaming series and listening to music without the need of a conventional TV or traditional media.
But above all, the biggest driver of streaming growth is that Africa has a young population very comfortable with technology. In today’s on-the-go, mobile-first society millions are constantly looking for fast-paced entertainment. For many users, streaming also works because it solves one important thing: local content — it allows African audiences to watch themselves on screen. A drive for “more African” content has also played a big role in the growth of these subscriptions.
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#2. E-Commerce subscriptions
Subscription service is becoming an indispensable part of everyday life with the rise in e-commerce where convenience and predictability in consumers have a place. These kinds of service are seen with meal-kit subscriptions popular in South Africa and North Africa providing you pre-portioned ingredients where, as a result, it’ll become easier for someone to cook a good dinner without having the stress of buying groceries.
Iimage source: pixabay
In addition to food, beauty and fashion (and books) subscription boxes are on the rise! It’s a place like Glambox(for beauty) and MyRunway (for fashion), it lets users to discover new products at very attractive prices. Obviously, these services are favourites for urban Africans as they love these blended service-oriented individuality options.
#3. Educate and skill
The continent is seeing a growth in educational subscriptions as more Africans want to increase their skill sets and marketability. Alongside a variety of courses with monthly or annual subscriptions, you will find Udemy and Coursera.
In Africa, local platforms like Nigeria’s uLesson are creating educational content tailor-made for African students. This seems to be providing a way for students in areas where traditional education is scarce or difficult to reach, by the sheer growing availability of internet services across regions.
#4. Health and wellness boxes
Subscription-based healthcare is also moving through the continent. The increasing demand for online consultations, medication delivery and wellness apps as healthcare systems come under strain. With the introduction of hospital booking and even prescription delivery right to your doorstep, in regions like Egypt up till now, very few platforms offer such services as Vezeeta does.
Fitness apps have also been on the rise! especially amongst younger Africans who are more health conscious and would like to sit down at home yet still enjoy a good workout to stay in shape. Byju’s Acquires Bengaluru-based Fitness App A company that offers an affordable option to access fitness plans at convenience and without a gym pass.
#5. Telecom and data plans
But, as the wealth of internet access improves telecoms firms are selling monthly packages for data or airtime. For most of Africa, mobile internet is the only way to connect.
This then comes to the advantages that companies like Safaricom with Home Fiber or Airtel data bundles offer giving people a cheaper option of using such internet for streaming, work etc. These plans have seen increased popularity because of the growing use of mobile internet in daily life.
Trends in Consumer Behavior
Consumer behaviour is leading the subscription economy in Africa; convenience, value for money & access to all things digital are key prevailing factors. A few major parts of that evolution are:
#1. Rise of digital payments
One of the primary drivers for subscription services to gain pace was Digital Payments Thanks to M-Pesa and Flutterwave, mobile payment platforms that make it safer for Africans to pay for their subscriptions with more convenience. It has made it easier for businesses to roll out subscriptions and customers to purchase without any friction.
The reliance on cash is dwindling as more people become accustomed to paying for services online, boosting the demand for e-commerce and streaming platforms even further.
#2. Convenience is key
Convenience is everything in our current fast-paced world. If we talk about subscription services, these are a quick solution for everyday needs — food delivery to online streaming or health.
Consumers are attracted to the notion of ‘set it and forget it’ in which they can automate everyday tasks, making their lives that much simpler. This aspect is one of the greatest drivers for growth in subscriptions as consumers demand more seamless services.
#3. Extract Value; Get the best performance per dollar
Also, affordability played a critical role. Most African consumers are budget-driven, and subscription services deliver affordability and flexibility. Rather than having to pay a large amount upfront, users can break that up over time which allows them to have an easier way to manage their budgets yet receive some decent services.
In Africa, people have unstable struggling income and flexible plans with weekly or monthly payments are ideal. And with subscription models that provide multiple levels of pricing, it becomes even more attractive as people can select the best option for their wallet.
#4. Localized experiences win
At the same time, African consumers understandably want to see their cultures and languages reflected in the products they use. This is why Nollywood movies on Netflix or African music streamed only with Spotify are so profitable.
Subscription services are connecting more deeply with their users by giving them a more personalized, culturally relevant experience.
Read also: Netflix Continues to Bait as Fans Await Arcane Season 2
Wrap-Up: The Growth Of Subscription Services In Africa
The new era of subscription services in Africa confirms the ongoing digital transformation taking place across the continent.
Whether it be the provision of entertainment, e-commerce services or sectors like education and healthcare, consumers across Africa are part of a generation that demands convenient instant access to goods/services when they need them most tech-savvy urban African youth.
Overall the subscription economy in Africa will grow further and provide interesting opportunities to businesses, changing how Africans experience products and services commemoration across a wide region.
