Despite speculation fueled by filmmaker Kunle Afolayan’s recent comments, Netflix has denied reports suggesting it is exiting the Nigerian market. The streaming giant reaffirmed its commitment to investing in Nigerian content, stating it would continue to back local stories to captivate its audience.
The Source of Speculation
The rumors stemmed from Afolayan’s remarks at the 2024 Zuma International Film Festival, where he revealed that Netflix had canceled several commissioned films from unnamed filmmakers. While he praised Netflix for initially signing a three-film deal with him, Afolayan shared concerns over Netflix’s focus on returns, suggesting dissatisfaction with the performance of Nigerian content.
“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,” Afolayan said.
While Afolayan’s comments sparked concern, he did not explicitly state that Netflix was leaving Nigeria.
Netflix’s Response
In a statement to TechCabal, Netflix firmly denied the exit rumors:
“We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.”
Netflix did not directly address Afolayan’s claims about canceled projects, but the speculation underscores challenges the streaming giant faces in the Nigerian market.
Challenges in Nigeria’s Streaming Market
Netflix’s journey in Nigeria began in 2016 with the licensing of high-profile local films. Since then, it has invested over $23 million in the Nigerian film industry, backing over 250 titles, including popular films like Lionheart, The Wedding Party 2, and King of Boys.
However, rising inflation, naira devaluation, and increased competition from affordable local streaming platforms have hampered Netflix’s ability to dominate the market.
- Pricing Issues: At ₦7,000 ($4) per month, Netflix remains a luxury for many Nigerians.
- Competition: Platforms like Showmax, operated by Multichoice, offer more affordable pricing options, making them accessible to a broader audience.
Lessons from Amazon Prime’s Exit
Netflix’s commitment comes in the wake of Amazon Prime’s exit from Nigeria in January 2024, just a year after its high-profile entry. Amazon Prime’s challenges in the market, including currency pressures and low consumer spending power, may serve as a cautionary tale for Netflix as it seeks to navigate the same economic headwinds.
Netflix’s Future in Nigeria
Netflix’s track record in Nigeria includes partnerships with industry leaders like Mo Abudu’s EbonyLife Productions and Kunle Afolayan. However, maintaining its presence in Nigeria will require addressing affordability concerns and adapting to the country’s unique economic challenges.
While the speculation surrounding its exit highlights uncertainties, Netflix’s commitment to local stories and its $23 million investment to date suggest it is determined to remain a player in Nigeria’s growing streaming industry.
As Netflix continues to navigate the complexities of the Nigerian market, its next steps—whether expanding content, revising pricing, or enhancing its engagement with local producers—will determine its long-term success in the region.