- Comparitech estimated active Netflix Nigerian subscribers in Q2 ‘19 to about 50,000 subscribers
- Netflix has been available as a service in Nigeria since 2016.
An International Entertainment Giant
Netflix was first formed in 1997 with an initial DVD rental by mail business model. The business model has since evolved and 2007 marked the turning point in the present model and positioning of the company as an online subscription based video streaming platform. Netflix has about 182 million subscribers globally and is available in 190 countries. The company recorded an additional 16.1 million subscribers in the wake of the pandemic movement restriction.
Why We Love Netflix
There are many reasons why Netflix subscribers love the VoD platform. A flat rate fee that offers access to tens of thousands of movies and shows is one of them. Add an algorithm that personifies user’s experience, making it possible to find less popular but tailored to user’s choice content. You can top that off with independent films and viral shows like Tiger King among many others. Oh! Almost forgot, there is also the fact that Netflix shows don’t mirror the political correctness exercised by other major production companies giving room to very diverse content.
Netflix in Naija- The Nigerian Potential
Nollywood is famous for churning out low budget movies in massive quantities. It is the second highest film producer in the world with an average turnover of $590million annually.
There is a big market for the Nigerian Movie industry both home and abroad. It caters for all of Africa, Afro Caribbean and many other communities abroad. Nigeria has one of the youngest populations in the world making it a ‘potentially massive market’ for a VoD platform.
Netflix’s initial foray into the Nigerian movie scene was in early 2015 when it purchased the online distribution rights to Kunle Afolayan’s ‘classic’ October 1. It delved deeper and damned all the odds of internet data cost coupled with other connectivity issues by continuing in an onward movement towards making the platform available to Nigerians in Nigeria in 2016.
It is even more delightful to find that the platform has served as an avenue for seeing only made for cinema Nigerian movies. Users have been treated to high end Nollywood productions such as EbonyLife film’s Wedding Party 1 & 2 and Kemi Adetiba’s King of Boys. In 2018, Genevieve Nnaji’s Lionheart became the first Netflix original movie after Netflix acquired the worldwide distribution rights– a deal that many have tagged mouthwatering for the Nigerian players involved.
The Numbers are not Yet Good Enough
Despite being available in the country since 2016, the total number of Netflix subscribers in Nigeria is about 50,000 according to a report released in 2019. Compared to close to 60million subscribers in the US, the number of people using the VoD platform is not so encouraging.
The most obvious reasons for this low numbers are data charges and low disposable income.
Netflix Sees Beyond the Current Numbers
Seeing beyond the current subscription numbers, Netflix has devised a way of growing its Nigerian subscribers. A creation of a dedicated NetflixNaija twitter account is definitely a step in the right direction. There has also been an increase in the number of Nigerian content available on the platform. More recently, the company announced a massive production deal with EbonyLife TV . The deal will bring two critically acclaimed books by renowned Nigerian authors to screen.
A recently sealed partnership deal between Netflix and Multichoice allows DSTV subscribers access to Netflix. This move is definitely one that will give the tech company a much needed boost in subscription numbers. Multichoice currently has about 13.9million subscribers, 40% of which are Nigerians.
We must also not forget that Netflix has a highly scalable model that has been proven in other countries.
Conclusively, it is a waiting game and a bet that will pay in the long run.
