Is Netflix really leaving Nigeria, or is this just another rumor making the rounds? Since its arrival in 2016, Netflix has had a tremendous impact on Nigeria’s entertainment industry. The streaming powerhouse has not only invested in original Nigerian movies such as King of Boys: The Return of the King and Blood Sisters, but it has also expanded its offering with several local movies.
These efforts have raised Nollywood’s global profile, introducing viewers around the world to Nigeria’s rich storytelling culture. However, recent reports have raised concerns that Netflix might shut down its Nigerian office and reduce its operations in the entire country. According to Peoples Gazette, the decision may be driven by economic concerns such as inflation and currency depreciation.
TechCabal presents a different angle, indicating that Netflix isn’t planning to leave Nigeria but may be scaling back its investment in the market. In a statement to TechCabal, a Netflix representative reaffirmed the company’s commitment to Nigeria, stating, “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.”
However, the spokesperson did not specifically address Kunle Afolayan’s remarks about canceled projects, instead, the spokesperson emphasized Netflix’s broader commitment to supporting local content and expanding its presence in the region.
The rumors gained traction following a viral movie featuring acclaimed Nigerian filmmaker Kunle Afolayan. In the video, Afolayan claims that Netflix has abandoned multiple commissioned projects, raising questions about the company’s long-term strategy in Nigeria.
Speaking at the 2024 Zuma Film Festival, Kunle Afolayan revealed that Netflix had halted the commissioning of new Nigerian original productions. He noted that he was fortunate to secure a third season for his popular series Anikulapo before the streaming giant made this decision. Afolayan’s remarks have fueled discussions about Netflix’s evolving strategy in Nigeria.
“Three years ago, when we signed the three-film deal with Netflix, it was really exciting,” Afolayan said. The filmmaker said that despite the global success of these films, Netflix appeared dissatisfied with their financial performance in the Nigerian market.
“Thank God we had shot seasons two and three of Anikulapo because all the other people that were commissioned with us at the same time were canceled.” While Kunle Afolayan did not explicitly claim that Netflix is exiting the Nigerian market, his comments have naturally fueled speculation about the streaming giant scaling back its presence. Watch the video of Kunle Afolayan addressing Netflix’s recent moves here.
Despite this, Netflix dismissed concerns of a possible withdrawal and reaffirmed its commitment to Nigeria’s booming creative industry. Edafe Onoriode, Group Account Director at Hill and Knowlton Strategies, Netflix’s PR agency, clarified the company’s stance: “We are not exiting Nigeria. We remain dedicated to investing in Nigerian stories that will captivate our members.”
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Netflix’s presence in Nigeria has boosted employment opportunities, benefiting actors, directors, and production teams equally. Over the past six years, the company has reportedly invested $23 million in Nigerian content, part of a wider $175 million investment across Africa. This investment has not only increased local content development, but it has also offered a global platform for Nigerian films and series to thrive.
Since 2016, Netflix has expanded its relationship with Nollywood, beginning with the acquisition of distribution rights for blockbuster films. This connection led to the creation of original material, including Genevieve Nnaji’s Lionheart, the first Nigerian Netflix original.
According to a report by London-based research firm Omdia, Nigeria accounts for only 10.5% of Netflix’s African member base, while South Africa dominates with 73.3%. Across the continent, Netflix’s expansion has been steady but moderate, with 1.6 million customers reported after six years of operation. Omdia expects this figure to reach 2.2 million within the next five years.
Netflix’s new announcement not only dispels speculations about its departure, but also reaffirms its commitment to Nigerian storytelling. The platform has been instrumental in showing movies from Nollywood to a global audience, providing a diverse range of indigenous material, from charming romantic comedies to compelling, intense dramas.
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What Could Netflix’s Exit Mean for Nigeria’s Entertainment Industry?
Netflix has transformed Nigeria’s entertainment business, expanding Nollywood’s reach and supporting local content makers. However, new speculations imply that Netflix may be pulling back its efforts in Nigeria, including closing its office and lowering market investments.
While an official statement from Netflix is still awaited, the speculation raises critical questions about the future of Nigeria’s entertainment industry. If Netflix exits, it could have far-reaching consequences for both creators and viewers. Local streaming platforms such as IrokoTV and Showmax could see an opportunity to thrive in a less competitive environment.
However, Netflix’s low prices have helped many Nigerians gain access to streaming. The struggles of local platforms like IrokoTV underscore the difficulties of sustaining streaming services in Nigeria. A Netflix exit may also limit Nigerian producers’ possibilities to promote their work to a worldwide audience.
Amazon Prime Video recently increased its monthly subscription rate in Nigeria to ₦2,300, while Netflix’s lowest plan remains at ₦2,200, making it a more affordable alternative for budget-conscious viewers. If Netflix exits, it might open the door for new streaming services to enter the market. Without the strain of competing with Netflix’s large content collection and competitive pricing, smaller or regional services may find it easier to gain traction.
Existing platforms, such as Prime Video, may see this as an opportunity to increase their market share, particularly as they extend their Nollywood offerings and refine their pricing. Also, the market may see a surge of new entrants eager to fill up the gap by providing diversified, customized content targeted exclusively to Nigerian customers.
Regardless of how the situation plays out, this might be an important turning point for local streaming sites such as Showmax and IrokoTV, which have already made significant strides in catering to Nigerian audiences. Showmax, for example, continues to invest in original movies, while IrokoTV is a staunch supporter of Nollywood, with a vast collection of both classic and contemporary Nigerian films.
Emerging platforms such as Party Jollof Africa are also making advances, hoping to carve out a niche by focusing solely on Nigerian and African films. However, Nigeria’s streaming sector is not without its challenges. Many platforms have battled to stay afloat, with some forced to shut down or reduce operations. High license rates, intense competition from worldwide players, and the ongoing issue of piracy all have a substantial impact on revenue streams.
What’s your view on this? Do you think Netflix is actually leaving Nigeria, or is this just a strategic shift in their operations? Please share your thoughts below.
