Netflix launched globally in 2016 and has over 80 million subscribers worldwide. Nigeria offers Netflix potential for revenue, opportunities, and Nollywood content. However, issues include inconsistent data on Nigeria's middle class, quality of Nollywood films, piracy, limited mobile/internet access, and local competitors. A staged approach is recommended - first researching the market, then focusing on affluent users while partnering with telecom companies to expand access before targeting broader audiences. Addressing these issues could open the Nigerian market to Netflix.

1. IN NIGERIA
by Brittney Johns

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:

6. Why Nigeria

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

10. Why should Netflix create a digital marketing
campaign in Nigeria?

11. SOLUTIONS

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

14. 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.

16. • STAGE FOUR: MTN-Netflix
partnership debate, Target
"floating class"
• STAGE FIVE: Video Compression
Testing Begins.

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.