Iflix, a video streaming service provider has sold its remaining shares in Africa to Econet Group’s, ‘Kwese’. In a bid for Iflix to double down on its efforts in Asia, where it has an upper hand against Netflix, Iflix had already sold a part of their shares and now, they have sold everything.
What we are not sure of is the size of the deal but Kwese Iflix has coverage in eight African countries – Nigeria, Ghana, Kenya, Uganda, Tanzania, Ethiopia, Zambia and Zimbabwe — while plans are in the pipeline to expand to four other countries.
What this deal means is that Iflix’s total market has been cut down to 23 countries – Southeast Asia, and the Middle East amongst other markets.
Econet-owned subscription TV platform, Kwesé invested hugely in Iflix Africa business in February 2018, where it metamorphosed to “Kwesé Iflix” as a joint venture.
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The company has raised almost $300 million from backers like British broadcaster Sky, Liberty Global and Malaysia-based Catcha Group.
Netflix rival iflix sells #African #business to local partner Econet Global Limited DEALSTREETASIA On-demand video streaming startup iflix, an emerging markets rival to Netflix, has effectively pulled out of Africa afte… https://t.co/CYh9jcRS8X via @theafricamentor #africabiz pic.twitter.com/yGbbhQgs13
— Africa Mentor (@TheAfricaMentor) December 27, 2018
“It has been an incredible journey and learning experience, launching our service in Africa. The acquisition by the Econet Group, our regional partner and Africa’s leading broadcast network, is a significant milestone for the African business, and further reinforces Iiflix’s commitment to our core markets in Asia, particularly Indonesia, Malaysia and the Philippines which continue to grow from strength to strength,” Iflix co-founder and CEO Mark Britt said.
It provides a freemium service with a token which may cost $3 or more per month. Its biggest competitor is Netflix, which has started aggressive pricing in Malaysia through a mobile-only package.