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

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.

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.

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.