What’s Next for Nollywood After Netflix’s Reduced Funding?

On November 2, 2024, Nigeria’s film industry gathered for Netflix’s ‘Light, Camera, Naija’ event to celebrate Nollywood’s achievements. But soon after, rumours spread that Netflix might be pulling out of Nigeria.

This was partially confirmed when filmmaker Kunle Afolayan mentioned that Netflix had cancelled several film projects. However, Netflix Nigeria responded, “We are not exiting Nigeria. We will continue to invest in Nigerian stories.”

Financial Strategy Behind Netflix’s Decisions

Why did Netflix decide to reduce its investment in Nigeria? It seems to be a financial decision. In 2023, Netflix spent much less in Nigeria compared to South Africa because of the lower subscription costs and smaller market size in Nigeria. Industry experts believe that Netflix is focusing on bigger markets like India and South Korea that promise more growth and have more subscribers.

Netflix’s Success and Nollywood’s Response

Despite this, Netflix recently reported a successful financial quarter, thanks to new subscribers and more ad-supported views. They highlighted the success of the South Korean show ‘Squid Game,’ which became their most-watched series ever. This situation is a wake-up call for Nollywood, according to filmmaker James Amuta.

He criticised the Nigerian film industry for depending too much on foreign streaming services without trying to be self-sufficient. Amuta emphasized that Nollywood needs to expand its market reach beyond just a few buyers to ensure long-term success.

Nollywood’s International Breakthroughs

Recently, Nollywood has seen some international success. Funke Akindele’s movie ‘Battle on Buka Street’ and Toyin Abraham’s ‘Ijakumo: Born Again Stripper was released in cinemas in the US and UK, showing that Nigerian films can attract audiences outside Africa.

This change encourages Nollywood to make more films that appeal to international viewers and not just rely on streaming platforms. This strategy could help Nollywood grow and gain more recognition worldwide.