By Habeeb Ibrahim
BlackBox Nigeria can authoritatively report that contrary to speculations, Netflix is not leaving Nigeria but it appears they might be discontinuing their funding of Nollywood movies from scratch. This means Nigerian filmmakers will no longer receive direct funding for Netflix Originals, a partnership that previously benefited industry stalwarts like Kunle Afolayan, Mo Abudu, Niyi Akinmolayan, and Femi Adebayo.
Instead, filmmakers will need to independently fund their movies and submit them to Netflix for acquisition or licensing, mirroring how the platform operated in its early days in Nigeria.
Why the Shift in Strategy?
BlackBox Nigeria checks showed that the decision appears tied to subscription figures.
Nigeria with her over 200million population reportedly has less than 200,000 Netflix subscribers, a sharp contrast to South Africa, with a population of approximately 65 million, but who accounts for 73.3% of Netflix’s African subscribers, boasting over 1.2 million users.
Nigeria has barely 10% of the African tally.
The remaining sub-Saharan countries BBN360 discovered share 9.6%, while Kenya accounts for 3.9%.
This significant disparity in subscription numbers makes the Nigerian market less lucrative for Netflix to justify investing heavily in original productions, it has been uncovered.
Additionally, Netflix’s recent restriction of films to specific regions may have been an effort to gauge accurate viewership metrics without the influence of the diaspora. This aligns with their decision to shift focus toward acquiring completed projects rather than funding new ones.
An example of this is the highly successful Lisabi which couldn’t be viewed outside the continent.
Why is Nigeria Facing This Setback Despite Its Population?
One of the primary challenges for Netflix is the prevalent culture of multiple account sharing in Nigeria. Many Nigerians it is believed share Netflix accounts instead of subscribing individually. This practice significantly limits unique subscriber counts, directly affecting Netflix’s revenue and overall market performance in the region. This is enabled because multiple accounts can be created under a single subscription while even more viewers can be logged into a single account irrespective of the location.
What Does This Mean for Nollywood?
Although Netflix Originals for Nollywood appears to be getting discontinued, Nigerian movies will still feature on the platform. Filmmakers will need to explore alternative financing models, which could foster increased creativity and innovation.
This shift underscores the importance of local efforts to boost streaming subscriptions, ensuring sustainable investments in the industry.
Netflix’s strategy is not an exit but a recalibration to ensure profitability and sustainability in the Nigerian market. For Nollywood, this may inspire a return to grassroots ingenuity, sparking the creation of content that resonates with both local and global audiences.
