2. • In January 2016, Netflix launched in over 130 countries.
• As of April 2016, there are over 81 million subscribers worldwide,
with 4.5 million subscribers are outside the United States.
• Reasons for the global expansions are the oversaturated of the
United States market.
3. 0
10
20
30
40
50
60
70
80
90
Netflix Amazon Hulu Crackle
Number of Subscribers
total subscribers paid & used subscribers
Beat their American
competitors in terms of
subscriptions, markets,
content and revenues.
4. • Unlike their United States competitors, Netflix has expand to many
countries across the world with potential to increase content and
revenue.
• Great expansions, comes great opportunities in different markets
with unique perspective.
5. • One country that can offer Netflix generous amount of revenue,
opportunities, and content:
7. • Nollywood: generate over USD$3.9billion and produce over 1000
films a week.
• Growing middle and affluent class: 40million of the population
are consider in this group.
• Potential mobile market: 150 million mobile subscribers.
• Active internet users: Over 97 millions Nigerians are online.
8. ISSUES
• Inconsistency with the size
Nigerian's middle and
affluent class.
• Quality of Nollywood films.
• Piracy: established black
market and lack of regulation.
• Availability of the mobile
market.
• Internet and mobile data is
limited to urban areas,
spotty, and expensive.
• Established competitors in
Nigeria with a loyal fan base.
9. Middle Class Divided 34.5 Million $2- $20 per day
“Floating” class 17.25 million $2 - $4
Middle Class 11.55 million $4 -$10
Upper Middle Class 5.7 million $10 - $20
Wealthy Class 4.1 million $20 and above
CLASSIFCIATION OF FILMS NUMBER
OF FILMS
IN NAIRA IN USD
Modest-Budget 600 – 700 N10 million and
below
$50,000 and below
“B” Films 200 N10 – N20 million $50,000 – 75,000
Blockbusters 100 N50 – N150 million $250,000 -
$750,000
12. RECOMMENDATIONS
• Further research needed to be done in terms of availability of mobile market,
audience, and socioeconomics.
• Wait for the technology to improve and mobile and internet to become more
affordable.
• Work with telecommunication companies to make Netflix and data-based
package available to subscribers.
• Buy and/or produce Nollywood content for local and international audience.
• Learn the strength and weakness of potential competitors in Nigeria.
13. STAGES TARGET SUBSCRIBERS REVENUE YEARS
Stage One (Jan. 2016-Jan. 2017) 100,000 $1 million 1
Stage Two (Jan. 2017 – June 2018) 4 million $40 million 1.5
Stage Three (Aug. 2018 – Oct. 2019) 8 million $80 million 1.3
Stage Four (Dec. 2019 – Dec. 2021) 12 million $120 million 2
Stage Five (Jan. 2022 – Jan. 2023) 16 million and more $163 million 1
STAGES
15. • STAGE 1: Wait a year for complete data report on the total number
of subscribers in Nigeria.
• Numbers positive and reach goal, continue to Stage 2.
• Numbers are negative, extended to six months until target reached.
• STAGE TWO: Focus on the affluent class, while start official talks
with GSMA companies.
• STAGE THREE: Transition to middle class, preparation for MTN-
Netflix Partnership.
17. Conclusion
• There is great potential for the Nigerian market.
• However, there are some issues that needs to be resolved for Netflix
to make the next step.
• Once these issues are settled and follow the recommendations,
then they can move forward in creating a digital campaign to grow
their audience and raise revenue.
