Jason Njoku, founder and CEO of IrokoTV, has reflected on the challenges of running the movie streaming platform in Nigeria. He admitted that the company’s $100 million investment in the local market was ultimately a costly mistake.
Njoku, in an interview with media personality Chukwudi Iwuchukwu, opened up about the decade-long battle to keep the business afloat in a challenging environment, despite early hopes of transforming the Nigerian movie space through digital distribution.
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“Between the revenues we generated and the venture capital we raised ($35 million) over the first ten years, we easily spent $100 million trying to win,” he said.
“But we weren’t winning; we weren’t losing either. We were just there, in full survival mode, operating in the toughest conditions possible.”
Njoku added that the Iroko TV, which was founded in 2011 and launched in 2015, IrokoTV had aimed to be the Netflix of Africa. but faced fierce competition from global players like Netflix, Amazon, Showmax, and Iflix, while also contending with Nigeria’s harsh economic realities.
“The local market in Nigeria simply collapsed. We saw it and stubbornly decided to keep investing and doubling down until we were all tapped out, having burnt through most of the post-exit capital,” he said.
“In 2023, we finally accepted there was no market for paid premium services and exited Nigeria. We haven’t processed any Naira payments there in almost two years.”
Njoku disclosed that while the streaming model failed, their production and distribution arm, ROK Studios, turned out to be the most profitable part of the company.
“In hindsight, streaming wasn’t the winning model for Nollywood in Nigeria. Content, channels, and distribution were,” he said.
He further expressed regret over the scale of the investment, suggesting that the same lessons could have been learned with a much smaller amount.
“I believe, with my newfound knowledge, that iROKOtv could have reached the same conclusions with $5-10 million versus the $100 million+ we ended up investing,” he said.
“It’s okay that we tried and failed. It’s okay that we accept the limitations in the domestic market we find ourselves in. Did it need $1 B+ to figure this out? Absolutely not.”
He added, “With the economics that business had in 2018, we could have shut down iROKOtv and its $5 million/year in losses and either listed it or just had a fantastically profitable business. My lessons were expensive, and that’s why I am so consistent in telling founders not to over-raise.”
