‘200m people, only 300K subscriptions’; AY reveals Netflix’s struggles in Nigeria

Nigerian comedian and actor AY Makun has spoken out about the recent controversy surrounding Netflix’s supposed halt in funding Nigerian original films.

The controversy was ignited by Nigerian filmmaker Kunle Afolayan, who claimed that Netflix had ceased commissioning Nigerian originals, raising concerns about the streaming giant’s commitment to the Nigerian market.

In a news report by Nigeria’s Vanguard News, it mentioned that AY Makun clarified that Netflix is not exiting the Nigerian market but is likely re-strategising its approach due to financial concerns.

“I had a meeting with Netflix recently and it was never mentioned to me that they are opting out of business in this part of the world,” AY stated.

“At the last meeting, we discussed my next project and how they can be a part of it. I also do not want to believe strongly that they are leaving Nigeria.”

Makun noted that Netflix’s struggles in Nigeria stem from financial challenges.

“The truth is if you are doing business in a particular region and you are not making money but spending much more than you’re making, you would want to re-strategise. That is what is going on with their system and structure,” he said.

The comedian explained that Netflix’s spending in Nigeria has far exceeded its earnings, prompting the company to reassess its business model.

He pointed to the widespread practice of subscription sharing and low subscription rates as key factors contributing to Netflix’s challenges in the country.

“For example, the subscription basis for Netflix in a country that has a population of over 200 million people is just about 300,000, so there is a leakage somewhere that needs to be corrected,” Makun noted.

He added that many Nigerians are accessing Netflix content through shared subscriptions rather than purchasing individual subscriptions.