For years, many have claimed Netflix reduced investment in Nigerian original content because Nollywood films were of poor quality.
Analyst Seyi with the username @seyideassistant on X formerly known as Twitter, challenges that narrative, arguing the decision was driven by economics, not talent.
Netflix is a publicly traded company whose primary duty is to deliver returns to shareholders. Every dollar invested must compete with better opportunities elsewhere.
The real question, Seyi says, is not whether Nigerian movies are good enough, but whether Nigeria offers the most attractive returns on capital.
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Data from Netflix’s own April 2023 socio-economic impact report (2016–2022) makes the contrast clear. Nigeria received $23.6 million in investment and just three original commissions. South Africa, with a much smaller population, got $125 million and 16 originals. Investment per capita was nearly 20 times higher in South Africa.
Seyi notes that capital is not emotional. Factors such as password sharing (one account often used by three people), currency weakness, affordability, and production economics all influence where Netflix deploys money.
While legitimate concerns about weak scripts and technical issues exist, he insists they are not the main reason for reduced investment.
Netflix has not left Nigeria as a platform and continues to license local titles. What has changed is the scale of original commissions. Improving quality remains important, Seyi concludes, but the bigger conversation is about economics.