Netflix has refuted reports of an impending exit from Nigeria, asserting its continued focus on the country’s growing film industry and creative sector.
This affirmation follows remarks by Nigerian filmmaker Kunle Afolayan at the 2024 Zuma International Film Festival, which led to talks about the streaming giant’s exit from the region.
Afolayan disclosed that several film projects commissioned by Netflix had been cancelled, despite the success of earlier collaborations. He said, “Three years ago, signing a three-film deal with Netflix was a significant milestone. While these films performed remarkably well globally, it appears their returns in Nigeria did not meet expectations.” However, Afolayan did not directly state that Netflix was withdrawing from Nigeria.
Adding to the speculation, some observers pointed to Amazon Prime Video’s retreat from Nigeria in January 2024, after a high-profile launch and investment in local content.
Even with these comparisons, Netflix has categorically denied any plans to leave the Nigerian market. In a statement issued on Wednesday, a spokesperson for the platform emphasised, “We are not exiting Nigeria. We remain committed to investing in Nigerian stories and delighting our audience.”
Netflix’s journey in Nigeria began in 2016 with the licensing of notable local productions. Over the years, it has invested over $23 million in the country’s film industry, supporting more than 250 projects, including licensed titles, co-productions, and original commissions.
Commendable successes include Lionheart, The Wedding Party 2, and King of Boys. In 2020, Netflix expanded its footprint by signing multi-title deals with industry heavyweights such as Mo Abudu’s EbonyLife Productions and Kunle Afolayan’s Golden Effects Pictures.
Nonetheless, Netflix faces challenges in Nigeria’s competitive streaming sector. With a monthly subscription cost of ₦7,000 ($4), the platform is perceived as a luxury service, especially in a country grappling with inflation and currency devaluation.
Local competitors like Showmax, known for its affordability, dominate the market, leaving Netflix with a smaller share of subscribers.
The uncertainty surrounding Netflix’s long-term strategy in Nigeria is stressed by its cautious investment approach.
While it has spotlighted Nigerian stories on a global stage, its financial commitment to the country is less in comparison to South Africa, which received 71% of Netflix’s $175 million investment in Africa between 2016 and 2023.
Reports predict that Netflix may need to reassess its pricing model and investment strategy to remain competitive.
The platform’s ongoing challenges are similar to those faced by Amazon Prime Video, which scaled back its operations in Africa due to low profitability.
Netflix’s denial of an exit reassures Nigerian audiences and creatives, but the market dynamics demand a better approach to strengthen its place in the country.
