Nigerians spent N2bn on video streaming in 2014

The seeming high cost of subscription for pay
television and the lack of leisure time to watch long
movies have been identified as reasons for the
rising interest of Nigerians in Video on Demand
streaming.
The VoD is a system that allows consumers to
select and watch abridged video content of their
choice and on the spot on Personal Computers,
tablets, smartphones and television, using Chrome.
Aside high net worth Nigerians, it was discovered
that workers, businessmen and even technology-
savvy students spent over N2bn on video
streaming subscription last year, going by the
subscriber base of online streaming platforms in
the country.
Of this amount, it was estimated that iROKOtv, a
leading video streaming platform in the country,
earned over N1bn from not less than 500,000
Nigerian subscribers at N2,000 yearly Average
Revenue Per User.
The other platforms, AfriNolly, DoBox, 9fix, IbakaTV
and RealNolly, among others, are said to have
raked in about N1bn from almost one million
subscribers at between N150 and N200 monthly
subscription per user.
Away from Nigeria, iROKOtv is reputed to boast of
about one million subscribers in 78 countries.
The African revenue, especially in Nigeria, with its
massive population, is expected to increase by the
end of this year, according to the latest Consumer
Lab annual report released by telecommunications
equipment manufacturer, Ericsson.
The Senior Advisor, Consumer Insights, Ericsson,
Rebecka Angstrom, said, “The about N2bn being
estimated to have been made in 2014 from video
streaming in Nigeria is still a far cry from what
would be made by 2015 ending given the high
population in the country, which is still growing,
and more so, the yet untapped opportunities in the
market.”
Angstrom spoke at a video conferencing session
with our correspondent in Lagos.
She added, “It is projected that by 2020, the Gross
Domestic Product on video streaming in Nigeria
will rise and provide not less than one million job
opportunities across the lines – as the number of
movies being produced will increase and the
number of VoD platforms in the country will triple.”
According to her, what is being spent on video
streaming platform subscription in a year is not up
to four per cent of what is spent on pay TV
annually, adding, “So, viewers have now learnt how
to save money by gradually adapting to video
streaming and patronising VoD platforms.”
She added that since Nigerians were too busy
“chasing money” and have little or no time for
relaxation, even after they must have spent a
fortune on pay TV subscription, the VoDs came in
handy since one could view them on the spot.
“They (Nigerians) could watch a video on their
devices from their offices, during spare times when
not at home, and even in the traffic in a place like
Lagos, or while on the move. More so, viewers are
currently shifting towards easy-to-use on-demand
services that allow cross platform access to video
content,” Angstrom noted.
A subscriber and Lagos-based banker, Mrs.
Patricia Oduh, attributed the increasing expenditure
on VoDs to the growing lack of ingenuity on the
part of pay TV platforms.
She said, “The movies and programmes on pay TV
are unnecessarily long and most people don’t have
the time to spend on such; so, we eventually have
a case where what we pay to the likes of DSTV,
StarTimes etc., are not fully optimised. But with
video streaming, the movies are condensed and
made more interesting, and can be viewed on the
spot.
“Also, the pay TV platforms repeat movies often
and that gets one tired. I spend N7,800 monthly
subscribing to pay TV, which is N93,000 annually;
but with the VoDs, I spend just about N2,000
yearly and you have a variety of movie options at
your disposal.”
The Chief Executive Officer of iROKOtv, Jason
Njoku, said the company’s vision was to have one
million subscribers in the country by 2020, adding,
“If we can reach that number, then iROKO will be a
billion dollar company. We simply target $1bn.
That is what I believe Nollywood, Nigeria and West
Africa deserves.
“As a billion dollar media and technology
company, we curate and export Nigerian culture
globally. The industry now needs us as much as
we need them.”
Perhaps because of the enormous opportunities in
the market, telecommunications company, MTN
acquired AfriNolly and DoBox. Both are said to
pose stiff competition to iROKOtv.
The Public Relations and Protocol Manager, MTN
Nigeria, Mr. Funso Aina, said, “The MTN DoBox
and AfriNolly came as a game changer to the
movie industry in Nigeria. Those who place
premium value on watching movies on-the-go
through the use of cutting-edge technology have
been adopting it significantly since it was
launched.”