Culled from Theophilus Akatugba Facebook
The conversation around Netflix’s recent decisions in Nigeria has sparked varied opinions, but the underlying issue goes beyond infrastructural challenges like power supply, high data costs, and poor connectivity. While these factors are undoubtedly critical, the widespread availability of Nollywood content on free VOD platforms like YouTube is arguably the most significant obstacle to the success of subscription-based streaming platforms (SVOD) in Nigeria.
As a promoter of DVDExcite, a platform that once focused on Nollywood content, I have firsthand experience of how YouTube’s free accessibility undermines the viability of SVOD platforms in this space. The challenge is simple: why should Nigerians pay subscription fees when they can access similar or even the same Nollywood movies for free on YouTube?
YOUTUBE (Free VOD): A Double-Edged Sword
The proliferation of Nollywood films on free streaming platforms has created a culture where audiences expect content without cost. While YouTube has provided a valuable space for content creators to showcase their work, it has inadvertently devalued Nollywood films in the paid streaming market. This makes it exceedingly difficult for platforms like Netflix, Amazon Prime, or even indigenous services to attract and retain subscribers willing to pay for similar offerings.
The Closure of Nigerian SVOD Platforms
The impact of this trend is evident in the closure of several Nigerian-owned SVOD platforms. IrokoTV, Nevada Bridge TV, and even DVDExcite all struggled to compete in a market saturated with free content. This isn’t due to a lack of effort or creativity but rather a mismatch between consumer expectations and the business model.
Netflix’s Position
Netflix’s decision to suspend commissioning Nigerian originals likely stems from an unfavorable return on investment (ROI). With only 169,000 subscribers in a country of 250 million people, the numbers don’t justify heavy investment in original productions. Comparatively, Netflix’s success in South Africa, with 1.7 million subscribers in a population of 64 million, underscores the importance of a robust infrastructure, better purchasing power, and, crucially, a lack of free alternatives saturating the market.
That said, Netflix continues to acquire Nollywood films, particularly those with theatrical releases. This strategy aligns with their broader model of ensuring exclusivity and premium value, but the challenge remains: as long as free alternatives exist, the pool of paying subscribers will remain limited.
Revitalizing Cinema Culture and Protecting the SVOD Market
Netflix’s focus on acquiring films with theatrical releases could help invigorate Nigeria’s cinema going culture, but this approach requires careful oversight. Distributors turned aggregators must ensure fair practices, preventing a monopolistic grip that could stifle smaller filmmakers and platforms.
Additionally, the industry must collectively address the over-availability of Nollywood films on free platforms. While YouTube is a powerful tool for visibility, it should be complemented by monetization strategies that emphasize exclusivity. For instance, a tiered model where premium content is reserved for paid platforms could help restore balance.
The Way Forward
To address these challenges and secure a future for SVOD platforms in Nigeria, we need to:
1. Educate Audiences: Raise awareness about the value of paying for premium content and how it supports the industry.
2. Improve Infrastructure: Advocate for better electricity, affordable internet, and reliable connectivity to make streaming more accessible.
3. Strategic Collaborations: Filmmakers and distributors should work with streaming platforms to ensure exclusivity and premium value for their content.
4. Content Diversification: Platforms must invest in unique, high-quality productions that distinguish them from free alternatives.
In conclusion, while infrastructural deficits remain a hurdle, the availability of Nollywood content on free platforms like YouTube poses a more direct threat to SVOD platforms. As someone who has experienced these challenges firsthand, I believe the industry must reimagine its approach to content distribution and audience engagement to ensure long-term sustainability.
Theo Akatugba
CEO, Ovueta Film Distribution
President, Association of Nollywood Core Producers
Founder, Lagos International Film and Cinema Convention
Promoter of Defunct DVDExcite SVOD Platform
