Netflix has debunked speculations about its departure from Nigeria, affirming its dedication to the country’s thriving film and creative industries.
The rumors emerged after filmmaker Kunle Afolayan spoke at the 2024 Zuma International Film Festival, revealing the cancellation of several Netflix-commissioned projects. He remarked, “Three years ago, signing a three-film deal with Netflix was a significant milestone. While these films performed well globally, it appears their returns in Nigeria didn’t meet expectations.” However, Afolayan did not explicitly state that Netflix planned to exit Nigeria.
The speculation gained traction following Amazon Prime Video’s decision to pull out of Nigeria in January 2024, despite earlier investments in local content.
Netflix has firmly denied these claims. In a statement released on Wednesday, the streaming giant declared, “We are not exiting Nigeria. We remain committed to investing in Nigerian stories and delighting our audience.”
Since entering the Nigerian market in 2016, Netflix has supported over 250 local projects and invested more than $23 million in the film industry. Notable successes include Lionheart, The Wedding Party 2, and King of Boys. In 2020, Netflix strengthened its presence through multi-title agreements with prominent players such as Mo Abudu’s EbonyLife Productions and Kunle Afolayan’s Golden Effects Pictures.
Despite these achievements, Netflix faces significant challenges in Nigeria’s competitive streaming market. With a subscription cost of ₦7,000 ($4) per month, the platform is viewed as a premium service in a country grappling with economic instability, inflation, and currency devaluation. More affordable competitors like Showmax dominate the market, leaving Netflix with a smaller subscriber base.
Analysts suggest Netflix must reassess its pricing strategy and deepen its local investments to maintain a foothold in Nigeria. The company’s cautious approach contrasts with its investment in South Africa, which received 71% of Netflix’s $175 million African funding between 2016 and 2023.
While Netflix’s denial reassures stakeholders, the streaming platform faces pressure to adapt to Nigeria’s unique market dynamics to sustain its long-term success.
