In Nigeria, Africa’s most populous nation with over 200 million people, the idea of building a successful local streaming platform sounds promising. Yet, the reality is grim: Low subscriber numbers and economic challenges make it a tough sell.
Industry insiders argue that Nigeria likely doesn’t have up to 10 million active paying subscribers for video streaming services, a figure too small to support a profitable local platform. This scarcity, combined with high data costs, funding woes, and competition from global giants, has led some to call local streaming ventures ‘dead on arrival.’
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Market too small to thrive
Osita Oparaugo, founder of the now-defunct Ogelle streaming platform, experienced this firsthand. In an interview with BusinessDay, he explained how Ogelle gained traction as a ‘movement’ but faltered when it came to funding. “The paid version of Ogelle, which supports the Ogelle premium, which supports what we’re getting to pay the content creators, was not forthcoming,” he said. Despite offering high-quality content, subscribers didn’t sign up for the premium service. “That’s when we realised that the subscription-based model will not work in Africa,” Oparaugo concluded.
He also cast doubt on Nigeria’s subscriber base. Commenting on MultiChoice Nigeria’s DStv, a major pay-TV provider, he said, “I don’t think that there are up to 10 million Nigerians that are on DStv.” While he admitted he lacked access to their data, his skepticism reflects a broader belief: The paying audience in Nigeria is limited.
The numbers back this up. Netflix, a global streaming leader, had about 1.8 million subscribers across Africa in 2024, according to reports. Nigeria, despite its massive population, accounted for just 10.5 percent of that—roughly 180,000 subscribers. In a country where millions watch free content on YouTube, convincing people to pay for streaming is an uphill battle.
Economic realities hit hard
The struggles of South Africa-based MultiChoice highlight the economic barriers. The company, which operates DStv, saw its subscription revenue drop to $197.74 million (ZAR3.5 billion) for the year ending March 2025, down from $355.93 million (ZAR6.3 billion) the previous year.
High inflation in Nigeria—reaching 23.71 percent in April 2025—and worsening economic conditions drove away customers. Since March 2023, MultiChoice has lost 1.4 million subscribers in Nigeria, making up 77 percent of the 1.8 million lost across its rest of African markets. Between April and September 2024 alone, 243,000 Nigerian subscribers dropped off.
Afoma Igbedion, manager of the Nollywood Studies Centre, pointed to deeper issues. “Local streaming platforms are struggling in Nigeria because of a lot of interconnected issues,” she said. “One is the technology needed to achieve the scale at which they need to operate for our population.”
Beyond tech, funding is scarce. Licensing quality content or commissioning originals costs money that local platforms don’t have. Then there’s the socio-economic hurdle. “Would the market size required to sustain the business be able to afford the high cost of data to access streaming platforms and the price point of subscription?” Igbedion asked. She suggested that free ad-supported streaming (FAST) channels like YouTube might be the only viable option for now.
Big players exit, small ones fail
Even well-known platforms aren’t immune. Jason Njoku, founder of IrokoTV—once called the ‘Netflix of Africa’—announced in March 2024 that the company had “finally accepted there was no market for paid premium services and exited Nigeria” in 2023. In a blog post, he noted that IrokoTV stopped processing naira payments nearly two years earlier. This followed a tough 2023, with his wife tweeting about a ‘nightmare’ year of debt restructuring and cost-cutting to turn the company around.
The dominance of international platforms such as YouTube, Netflix, and Amazon Prime adds pressure. YouTube, for instance, generates $36 billion annually—about one-seventh of Nigeria’s GDP of $248 billion—without spending on content creation.
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Yinka Obebe, CEO of PopCentral, explained: “They spend nothing on content—everything goes into platform development and accessibility.”
Local platforms, meanwhile, lack the infrastructure, like Content Delivery Networks (CDNs), to compete. “Exchange rate fluctuations killed us,” Obebe said, recalling how his app, once among Nigeria’s top five in 2020 as per Apple, relied on Indian developers in Dubai due to local skill gaps.
Why local platforms are ‘dead on arrival’
The phrase ‘dead on arrival’ captures the sentiment of many in the industry. Ojie Imoloame, a Nollywood producer, argued that “the Nigerian market is not ready for local streaming platforms and will not work.”
He suggested building content libraries for platforms like YouTube instead, where monetisation is easier. The subscription model, successful in wealthier markets, falters locally because only a few can afford both data and fees amid economic hardship.
Global platforms also pose a risk. Emeka Mba, a Nigerian media mogul, warned of over-reliance on them after YouTube shut down his channel for a ‘community standards violation.’
“They can take you down without notice, lock you out without explanation, or change their revenue rules overnight,” he wrote on LinkedIn. He stressed the need for local platforms to protect “cultural sovereignty, creative freedom, and economic security,” citing Netflix and Amazon’s retreat from Nigerian originals as a wake-up call.
Glimmer of hope?
Despite the gloom, some see a path forward. MultiChoice is reportedly tweaking DStv’s model, offering daily or weekly payments instead of monthly subscriptions—a nod to Nigeria’s economic constraints.
Obebe pinned hopes on MTN’s data centre initiative, which could provide affordable infrastructure. “Streaming is a very, very, very big boys’ game,” he said, but suggested a rethink: “We must invest heavily in platform development and accessibility—the tech is no longer rocket science.”
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He also championed artificial intelligence (AI) as a game-changer. “Westerners don’t need AI for content as much as we do. They have budgets, we never have,” Obebe argued. By using AI to cut costs and create authentic Nigerian content, local platforms could carve a niche. “The future of Nigerian streaming isn’t about competing with global giants on their terms—it’s about creating local solutions for our unique market,” he said.
The road ahead
Nigeria’s streaming ambitions face a stark reality. A small paying audience, high costs, and global competition make local platforms a risky bet. With fewer than 10 million subscribers likely across all services, far below what’s needed for profitability, the dream seems distant. Yet, voices like Mba and Obebe argue for persistence, blending innovation with local focus.
