Netflix, Amazon And The Shake-Up In Africa’s Film Industry: Did They Really Abandon Africa?

Posted on January 5, 2025

For most of 2024, discussions have been raging on as to why Netflix and Amazon have supposedly left Nigeria, South Africa, and the rest of Africa. As I listened and watched, it quickly dawned on me that much of what was being said wasn’t grounded in factual, verifiable information but rather in emotional, unsubstantiated claims. And honestly, I get it —Africa losing major sources of film funding is a hard pill to swallow.

However, the idea that these platforms have “pulled out” is misleading. Both remain active in Africa, though with notable adjustments to their operations—and I don’t blame them.

To really understand what’s happening, we need to zoom out and look at the bigger picture.

During the growth phase of the streaming cycle, the industry embraced a “growth at any cost” mindset.

Between 2020 and 2024, an estimated $500 billion was poured into content creation to drive subscriber acquisition. But as the market matured and losses mounted, investors started banging the profitability drum. Naturally, when businesses are told to focus on profits, the first move is to cut costs. For the streaming giants, this meant trimming workforces, lowering overheads, cancelling underperforming shows, and being more selective about what content gets produced or acquired—all in the name of improving profit margins.

These decisions are not unique to Africa —they’re part of a global shift as the streaming industry transitions from its growth phase to a more sustainable, profit-driven model. So, the next question is: why were the cuts so harsh in Africa? In one word, it’s ROI (Return on Investment). This is a term that many filmmakers—not just in Africa but globally—struggle to fully understand.

Let’s put this into perspective.

Between 2016 and 2022, Netflix invested approximately $175 million in Africa: $125 million in South Africa, $23 million in Nigeria, and $29 million across the rest of the continent. In the grand scheme of things, these amounts are minuscule over a six-year period when compared to Netflix’s annual global content budget of $17 billion. Even more striking is Netflix’s plan to invest $2.5 billion in South Korea over the next four years. The reason, once again, is ROI. There are many factors contributing to our low ROI, but that is a discussion for another day.

While Netflix and Amazon are scaling back, there is a bright spot: Showmax.

The South African-based streaming service is demonstrating robust growth across sub-Saharan Africa. Supported by a $177 million investment from its parent company, MultiChoice, in partnership with Comcast’s NBCUniversal and Sky, Showmax is enhancing its content offerings and technology platform. This strategic expansion highlights confidence in Africa’s potential as a thriving streaming market.

That said, I would urge Showmax to think bigger: Africa’s content has global appeal. Just as African music has captivated audiences worldwide, African film can do the same. By tapping into the Diaspora and black communities globally, Showmax has the opportunity to unlock billions in untapped potential revenue.

As for claims about “greed and dishonesty” in the industry —they’re anecdotal and lack substantiation. Even if such issues exist, when has greed or dishonesty ever stopped an organisation from pursuing financial gain? Instead of focusing on such narratives, we should address the core reasons behind the African film industry’s poor performance. Solve those, and the streaming giants and studios will be banging on our doors, ready to pay top dollar sooner than we think, as we have a huge, unexploited global audience second to none.