Nollywood remains a booming industry, producing the second-highest number of films globally and employing about a million people. Regardless of whether Netflix’s move to halt funding for original content was right or wrong, the industry is adapting to the new landscape.
Stakeholders are now combining the reach of streaming giants—willing to secure distribution rights—with local asset managers to channel fresh capital into the sector.
In 2024, despite economic challenges, ticket sales surged 60% indicating strong local demand and growth potential.
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The Way Forward for Nollywood
Local financiers and asset managers have stepped in to fill the funding gap left by streaming giants. This has created new commercial opportunities and diversified funding sources.
Streaming platforms like Netflix still acquire these Nigerian films and provide a global distribution channel. They offer dollar-denominated revenue streams that help hedge against local currency volatility.
However, the picture has become complicated.
Streaming platforms remain valuable to Nollywood for distribution. However, the scale of their original content funding in Nigeria has diminished, meaning local investors now play a more critical role in financing Nollywood’s growth.
Netflix denies exiting Nigeria entirely but has canceled or decommissioned several Nigerian projects and reduced the number of new originals it commissions. This has caused uncertainty and concern among Nigerian filmmakers.
Netflix’s eight-year investment in Nigeria (about $23.6 million) has been curtailed. It is reallocating resources to other markets like Mexico, where it announced a $1 billion investment.
The claim is accurate in highlighting Nollywood’s growth potential and the emerging role of local financiers, but it overlooks the recent significant pullback by major streaming giants in funding original Nigerian content.
Streaming platforms still provide valuable distribution channels, but their reduced commissioning budgets mean Nollywood’s blockbuster financial returns increasingly depend on domestic investment and alternative financing models.
Thus, the industry is at a transitional moment—shifting from heavy reliance on international streaming commissions toward a more diversified funding ecosystem combining local capital and global distribution partnerships.
