Netflix Exit from Nollywood? Rumours, Reasons, Response, and Repercussions

Speculation about Netflix’s withdrawal from Nollywood gained traction after filmmaker Kunle Afolayan’s remarks at the 2024 Zuma Film Festival.

Speaking during a panel discussion, Afolayan disclosed that Netflix had canceled several previously commissioned projects. “Thank God we had shot seasons two and three of “Anikulapo” because all the other people that were commissioned with us at the same time were canceled,” he said. These statements ignited widespread concerns about the platform’s intentions in Nigeria.

Adding to the uncertainty is Netflix’s perceived scaling back of operations in recent months, which parallels Amazon Prime Video’s exit from Nigeria earlier this year. In January, Prime Video announced a strategic shift, reducing its investments in African content to focus on European markets. This move left a vacuum in Nollywood, raising fears that Netflix might follow suit.

Economic challenges in Nigeria provide further context for the rumors. Fluctuating exchange rates, high inflation, and costly data subscriptions have reportedly strained the streaming business. Netflix’s subscription price hikes in July 2024—with the premium plan jumping from ₦5,000 to ₦7,000—exacerbated affordability issues, potentially dampening subscriber growth in the region.

Despite these concerns, Netflix has denied plans to exit the Nigerian market. In a statement addressing the speculation, the platform reaffirmed its commitment: “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our audience.” This assurance, however, has been met with skepticism. Some Nollywood insiders have labeled the move as mere public relations damage control, pointing to the abrupt cancellation of projects and reduced local activity as signs of an internal pivot.

The consequences of a Netflix withdrawal could be significant for Nollywood. Over the years, Netflix has been a vital partner in showcasing Nigerian stories on the global stage, producing hits like “King of Boys” and “Blood Sisters”.

The platform’s financial backing allowed filmmakers to focus on creativity while benefiting from guaranteed funding and international exposure. Afolayan reflected on the economic advantages of working with Netflix: “We were earning in dollars with guaranteed contracts. Now, filmmakers are uncertain about their next steps.”

Furthermore, Netflix’s involvement has elevated production standards in Nollywood, inspiring local creators to strive for global excellence. Without its support, the industry risks losing momentum in its quest for higher quality and wider reach. Conversely, if Netflix continues its operations, the opportunities for growth and international collaboration will remain intact, ensuring that Nigerian stories continue to resonate worldwide.

This situation has also highlighted concerns about the distribution challenges faced by Nollywood creators. Afolayan pointed out the growing reliance on platforms like YouTube, where many actors and talents have become their own distributors. “Everybody is now creating YouTube channels,” he noted.

However, he cautioned against depending entirely on such platforms, saying, “What if tomorrow, YouTube brings some policies that will affect our projection? As practitioners, we need to come together to discuss solutions rather than placing the entire weight on the government.”

Ultimately, the ongoing speculation serves as a reminder of the need for strategic planning and collaboration within Nollywood. Regardless of Netflix’s future decisions, the industry’s ability to adapt and explore diverse opportunities will be crucial in maintaining its growth and global relevance.