By Abbas Tijani
Netflix has recently decided to exit the Nigerian market, a move that has raised concerns within the country’s film industry. This decision was confirmed by renowned filmmaker Kunle Afolayan during the 2024 Zuma Film Festival. Afolayan noted that while he was able to secure a third season for his acclaimed series “Aníkúlápó,” many of his peers were not as fortunate. He described Netflix’s departure as a significant setback for Nollywood and emphasized the need for the industry to reduce its dependence on international platforms, advocating for the development of robust local systems to support indigenous storytelling.
Several factors may have contributed to Netflix’s decision:
Economic Challenges: Nigeria’s economic environment presents hurdles for streaming services. As of 2023, Netflix had approximately 169,600 paid subscribers in Nigeria, a modest figure given the country’s large population. In contrast, South Africa accounted for 73.3% of Netflix’s sub-Saharan African subscribers. This disparity is partly due to Nigeria’s economic struggles, including high poverty rates and limited disposable income, which affect consumers’ ability to afford subscription services.
Regulatory Environment: The Nigerian government has shown intentions to regulate streaming platforms like Netflix. In December 2021, the Minister of Information and Culture announced plans to oversee content on such platforms, aiming to prevent potential misuse that could disrupt democratic processes. This regulatory stance may have influenced Netflix’s operations in the country.
Market Dynamics: Netflix’s investment strategy in Africa has been uneven. Between 2016 and 2022, Netflix invested $175 million in sub-Saharan Africa, with 71% directed to South Africa and only 13% to Nigeria. This significant difference in investment levels indicates a strategic focus on markets perceived as more profitable or less challenging.
In summary, Netflix’s withdrawal from Nigeria appears to result from a combination of economic challenges, regulatory considerations, and strategic business decisions. This development serves as a prompt for Nollywood to strengthen its local infrastructure and reduce reliance on international platforms.
