iROKOtv Unable to Capitalize on Streaming Boom
The VOD service is watching its local subscription numbers trend downwards
First off, rest in peace to Chadwick Boseman.
In his honour, I intend to binge-watch movies where he played iconic Black characters. If there was ever a time that I’d be able to pull it off, it would be right now.
Wrong direction
Stay-at-home measures have brought about a global rise in video streaming. But for Nigerian VOD service iROKOtv, this period has curiously gone from dark to very dark.
iROKOtv says its international daily subscription rate has grown by 200%. However, in Nigeria, after recording its best month in April, there has been a steady decline in service subscriptions.
This has led to rounds of job cuts and staff furloughs, and eventually to the decision by Jason Njoku, iROKOtv founder and CEO, to focus the company’s attention on international markets which are currently 80% of their revenue.
Jason believes economic uncertainties have put a squeeze on iROKOtv’s local users and made the ₦3,000 (approximately $6.30) monthly subscription fee unsustainable.
Different strokes
Elsewhere, however, the story seems different.
Buoyed by a similar streaming spike in March/April in South Africa, MultiChoice launched Showmax and Showmax Pro in Nigeria in July. And by the following month, Big Brother Nigeria was already breaking continent-wide streaming records.
Over 50% of the show’s viewership comes from Nigeria; Showmax is only ₦200 more expensive than iROKOtv. There has also been a rise in satellite TV subscriptions.
On the surface, this calls Jason’s economic hardship thesis into question.
There’s a financial crisis, agreed, but we are also experiencing such desperate times that it doesn’t feel like austerity is a strong enough reason for Nigerians to totally abandon a reliable means of escape.
iROKOtv and the Nigerian government appear to be on a collision course over newly-proposed regulations. You, therefore, suspect that there’s more to Jason’s assertions.
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