Netflix is making more South African shows as streaming competition and regulation reshape the market

Netflix is expanding its South African content investment, raising its annual production slate to 15 to 20 local shows and films as viewer competition shifts and regulators reconsider the rules governing streaming services.

The company previously produced eight to 12 local projects annually, according to Kaye Ann Williams, who oversees scripted content in sub-Saharan Africa. The new figure covers scripted and non-fiction productions but excludes third-party titles Netflix licenses for its catalogue.

The expansion comes as South Africa’s streaming market faces competing pressures. MultiChoice and its parent company, Canal+, have decided to discontinue Showmax following substantial losses, while the Independent Communications Authority of South Africa (ICASA) has withdrawn and plans to republish its proposed inquiry into over-the-top (OTT) services. Netflix has an opportunity to strengthen its position through local productions, although the regulatory outcome and its possible effect on streaming costs remain unresolved.

Netflix raises its annual production target

Netflix entered South Africa in 2016, initially competing with established broadcasters and subscription television services before developing a larger slate of locally produced programming. Williams said that the company’s first three to four years involved understanding what audiences watched, which programmes they returned to and how their preferences changed. Significant investment in South African productions began in 2018, according to the interview.

The company’s reported production target reflects the development of a more established commissioning operation. Netflix says its South African productions have supported more than 8,000 jobs over the past decade, extending from actors and directors to technicians, caterers, transport providers and other businesses supplying film and television sets. The company also says it has commissioned or licensed more than 300 South African titles, working with over 30 production companies across 20 cities in eight provinces.

The distinction between commissioned and licensed content matters when assessing the scale of that investment. An original production can generate expenditure on local crews, equipment, locations and specialist services, while a licensed programme may primarily involve acquiring distribution rights. Netflix’s combined catalogue figure therefore does not establish how many original productions it has financed or how much money it has spent on the industry.

Netflix has previously reported investing more than R4 billion in South African productions between 2021 and 2024, an average of approximately R1 billion annually over that period. That provides a historical benchmark, although it does not reveal how much the company is spending in 2026 or what portion of its future production budget will be allocated to South Africa.

Why local stories matter to Netflix

Netflix’s strategy depends on producing programmes that resonate with domestic viewers while retaining the potential to attract international audiences. Williams said the company now has a clearer understanding of how South Africans want to see their lives represented, including the importance of regional languages, dialects, casting and the people involved behind the camera.

That approach places a practical demand on producers. A series set in Durban, for example, needs to reflect the language and cultural nuances of the community it depicts. If the dialogue sounds disconnected from local speech, the production risks losing the viewers whose experiences it is intended to represent. Netflix’s argument is that such details influence whether audiences find a programme credible enough to watch and recommend.

The reported performance of The Polygamist provides an example of the company’s reasoning. According to Williams, the drama attracted 24 million views during its first five weeks and appeared in Netflix’s global top 10 in 62 countries, spending seven weeks in the ranking. These are figures supplied by Netflix through the interview rather than independently audited audience statistics.

The series’ family conflicts and relationship themes offered audiences outside South Africa a way into a story rooted in Southern African social and cultural settings. Its reported performance adds weight to Netflix’s view that locally developed productions can reach viewers beyond their original market without losing the cultural details that give them character.

The commercial significance lies in the possibility that a locally developed production can serve two purposes: giving South African subscribers programming that reflects their experiences and supplying Netflix with content that can travel across its international distribution network. Strong international viewing figures alone, however, do not establish a programme’s profitability. Production costs, marketing expenditure and its contribution to subscriber retention would be needed to assess the financial return.

Showmax’s exit changes the competitive landscape

Netflix’s expansion comes as the South African streaming market loses one of its established local competitors. Canal+ announced in March 2026 that it would discontinue Showmax after reviewing the platform’s financial performance. The decision followed mounting losses and a broader effort to improve the economics of the combined business.

Showmax’s closure illustrates the difficulty of turning a recognisable brand and substantial local catalogue into a sustainable streaming business. Platforms must finance content, acquire and retain subscribers, maintain reliable distribution and compete for household entertainment budgets. A strong library of African productions does not automatically generate enough revenue to cover those costs.

The development could create an opening for Netflix, but the scale of any benefit remains uncertain. Showmax subscribers may move to DStv Stream, choose another platform, return to traditional television or reduce their spending on paid entertainment. Netflix’s ability to attract them will depend on its catalogue, subscription prices, available payment options and the perceived value of its service.

The competitive picture also extends beyond South Africa. Amazon previously commissioned African originals through Prime Video but announced in January 2024 that it would redirect original-content investment towards Europe. Other services, including Disney+, Apple TV+ and regional platforms, remain part of the wider competition for audiences. Netflix’s sustained local commissioning gives it an identifiable advantage in original South African content, although comparable investment and subscriber figures would be needed to quantify that lead.

South Africa’s streaming rules remain unsettled

Content investment is only one part of Netflix’s operating environment. Telecommunications operators represented by the Association for Communications and Technology (ACT) have advocated a Fair Share contribution requiring major OTT services to help fund network infrastructure. Their argument is that services such as Netflix use capacity maintained by telecommunications companies while competing with some of those operators’ own communications and entertainment offerings.

The proposal raises questions about how network costs should be allocated between connectivity providers and the digital services carried over their infrastructure. If a contribution were eventually imposed, Netflix might absorb the additional expense, negotiate commercial arrangements, change its spending allocation or pass some costs on to subscribers. A subscription price increase is one possible outcome, not a confirmed consequence of the proposal.

ICASA withdrew its notices concerning an inquiry into OTT services and a separate telecommunications affordability inquiry in late September 2026. The regulator said the withdrawal would allow it to address administrative and procedural matters. It also indicated that the OTT notice would be republished with clearer guidance for public participation. As of 11 October, the proposal had not established a requirement for Netflix or other streaming platforms to make network contributions.

The distinction is important because an inquiry can examine the effect of streaming services on existing licensees and the regulatory framework without automatically introducing a levy. Any new obligations would depend on the process that follows, the evidence gathered and the decisions made by the regulator and policymakers.

For Netflix, the proposal adds uncertainty to an investment strategy that relies on reaching subscribers over South Africa’s broadband and mobile networks. The effect could extend beyond the company if new costs influence subscription prices or commercial arrangements across the streaming market. However, neither the production expansion nor the Showmax shutdown establishes that the proposed rules have changed Netflix’s investment plans.

There is also a consumer affordability question. Subscribers already pay for mobile data or fixed broadband, and a separate contribution imposed on streaming platforms could raise concerns about whether the cost of delivering digital services is being recovered more than once. The actual impact would depend on how any contribution was designed, who was covered and whether platforms passed the cost on to customers.

Telecommunications operators may argue that existing revenue does not adequately cover the costs of expanding network capacity, particularly as video consumption grows. Streaming providers could challenge the assumption that they should bear a separate charge for using infrastructure that customers already pay to access. Those competing arguments will need to be assessed against evidence on network investment, traffic costs, competition and affordability.

What Netflix’s investment means for the local industry

Netflix’s annual production target suggests that South Africa will remain an important base for its regional content operation. Its reported record of employment and work with production companies illustrates how streaming expenditure can reach beyond the platform itself. The longer-term value will depend on whether local producers can maintain a sustainable pipeline of projects, develop skills and retain relationships with buyers as commissioning decisions change.

The closure of Showmax is a reminder that demand for African stories does not, on its own, guarantee the viability of every streaming platform. Content expenditure must be supported by a business model that can attract paying customers and manage distribution costs. Netflix’s international reach offers local productions access to a much wider audience, but that advantage does not remove the financial pressures facing the industry.

The company’s next challenge is to convert its understanding of South African audiences into a slate that delivers consistent viewership and commercial returns. At the same time, the unresolved debate over OTT regulation will help determine how streaming platforms operate within the country’s telecommunications market.

Netflix is committing to more local productions while those wider conditions remain unsettled. Whether that translates into sustained growth for the company and lasting opportunities for South African production businesses will depend on audience demand, the economics of distribution and the regulatory decisions that follow.

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