Olayomi Koiki
Netflix is reportedly exiting the Nigerian market as the country continues to face its worst economy crisis in a generation.
The worsening economic situation under President Bola Tinubu made the decision inevitable, local news outlet Peoples Gazette reported on Wednesday, citing officials.
“We’re exiting the Nigerian market,” one of the officials said under anonymity, pending an official announcement.
“We’ve lost too many paying subscribers, and the exchange rate of naira against the American dollar also did not help us in any way.”
Netflix is an American subscription video on-demand over-the-top streaming service. The service primarily distributes original and acquired films and television shows from various genres, and it is available internationally in multiple languages.
When Netflix officially expanded into Nigeria six years ago, it was a match made in heaven. They tapped into the vibrant Nollywood industry, commissioning original content that resonated deeply with local audiences while also appealing to a global market. Titles like Oloture, Blood Sisters, and Anikulapo showcased the richness of Nigerian stories, while the platform became a major ally in putting Nollywood on the global stage.
However, maintaining a relationship with any market comes with its challenges. In recent months, the platform seemed less aggressive in promoting its presence in Nigeria, fueling speculation about whether all was well.
Running a business in Nigeria isn’t for the faint-hearted. With fluctuating exchange rates, high inflation, and economic uncertainty, operating in Nigeria has become increasingly expensive for international companies.
Nigeria’s subscription base may not have met Netflix’s expectations. Streaming services thrive on large audiences, but high subscription costs, limited internet access, and data costs might have been barriers for many Nigerians.
Although the company has also reported a downward trend in subscriptions in other markets, it has persevered until now, with Nigeria appearing to be the first major country to lose the premium entertainment the U.S.-based company offers.
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