Nigeria’s Netflix is Out What Went Wrong?
In a bombshell admission that’s reverberating across Africa’s tech and entertainment sectors, IROKOtv co-founder Jason Njoku announced the company’s full withdrawal from the Nigerian market.
His reason? “There’s no market for paid services.”
This statement hits hard for a company that once pioneered streaming in Africa. After burning through over $100 million, the dream of a Nigerian Netflix now lies in ashes and it reveals a deeper economic reality about the country’s struggling digital economy.
10 Years, $100 Million, Zero Traction?
Founded in 2011, IROKOtv was a bold bet on Africa’s rising middle class. The business model seemed bulletproof: aggregate Nollywood content, stream it via mobile, monetize through subscriptions.
But the market didn’t grow as expected. Despite early traction, user payments dried up.
Jason Njoku admitted:
“We finally accepted there was no path to building a profitable customer business in Nigeria.”
This came after 10 years, extensive content licensing, tech investment, and local marketing pushes. In essence, IROKOtv couldn’t convince Nigerians to pay not because the product lacked value, but because the disposable income just isn’t there.
The Harsh Economics of Streaming in Africa
Let’s break it down:
- Internet access is expensive.
- Bandwidth is inconsistent.
- Trust in online payments is low.
- And most importantly: Nigeria’s per capita income (~$2,000/year) makes $5/month subscriptions a luxury.
Contrast that with global platforms like Netflix or Disney+ they thrive in markets where credit cards, consistent broadband, and stable economies support user subscriptions.
In Nigeria, a weak naira, inflation near 24%, and a large informal economy make digital monetization a monumental task.
No Revenue, No Runway
What’s worse? IROKOtv wasn’t just streaming movies it was financing original content, acquiring expensive Nollywood rights, and building tech infrastructure.
Without meaningful subscription revenue, there’s no economic engine to sustain the platform. Even ad-supported models fall short in a market where CPMs (cost per thousand ad views) are a fraction of global averages.
What This Means for Nigeria’s Tech Scene
This isn’t just an IROKOtv story it’s a cautionary tale for African start-ups.
Key Lessons:
- Assume low ARPU (average revenue per user) unless your audience is outside Nigeria.
- Build lean: Over-engineering platforms in low-yield environments is a fast track to failure.
- Monetize globally, serve locally: Companies like Paystack, Flutterwave, and Andela found success by targeting foreign revenue streams.
Jason Njoku’s Final Word: “Nigeria is not the market we hoped it would be.”
That statement may sting, but it’s rooted in realism. Until infrastructure improves, disposable incomes rise, and digital trust deepens, subscription-based tech services may remain a hard sell in Nigeria.
Financial Juggernut Takeaway
IROKOtv’s $100M journey reminds us: building in Africa is not just about solving local problems it’s about finding viable economic pathways to sustain innovation.
Nigerian entrepreneurs must think globally even when acting locally. The dream isn’t dead but the business model must evolve.