Selling content in Africa is getting harder

Spotiy Celebrates Nigerian Creatives - @Bellanaija

95% of iROKOtv revenues are outside of Nigeria

The above graph shows the distribution of iROKOtv subscribers. Africa's percentage has dropped to less than 10% since we changed the prices of iROKOtv. If we narrow it down to Nigeria, is it now less than 5%? In the short term, this change is beneficial for the business. However, I cannot see how we can achieve a startup scale with $100 million in annual revenues in a market that consistently devalues. With the current record inflation rate of 28% and 12-month forward Naria contracts priced at N1,300 (implying a parallel market value of N1,600+), the only way global streamers can justify their local pricing is through NGO-like economics. The pricing of Nigeria Netflix & Showmax mobile at N1,200/month ($1.2) and Spotify at N900 ($0.9) doesn't make much sense either. Nigeria is insignificant in their global calculations, but I would love to be present when they forecast their ...

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