Jason Njoku: “We Spent $100M, But There’s No Market for Paid Streaming in Nigeria”
Jason Njoku Reflects on iROKOtv’s $100M Streaming Gamble in Nigeria: “We Tried, But the Market Won”
iROKOtv founder Jason Njoku has opened up in a candid essay about the challenges, missteps, and ultimate withdrawal of his company from the Nigerian streaming market—calling it a “$100 million mistake.”
In a detailed post published on his website Njoku.org, Njoku chronicles the company’s journey, the failed dream of building a local Netflix-style platform, and the harsh realities of doing business in Nigeria’s underdeveloped digital economy.
Early Optimism and Big Bets
Njoku recounted how iROKOtv, launched in 2011, attracted global venture capital support, notably from Tiger Global, which believed in the potential of local entertainment in large domestic markets.
Tiger, which also invested in Netflix, YY (China), and IVI (Russia), poured funds into iROKOtv with hopes of a similar success story out of Africa.
But from the start, iROKOtv faced fundamental challenges: expensive data, low digital penetration, poor payment infrastructure, and a low-income consumer base.
While the platform thrived among diaspora audiences who were more tech-savvy and financially capable, it struggled to gain paying users domestically.
Survival Mode and Unrealized Dreams
For over a decade, the platform remained in “survival mode.” Njoku revealed that iROKOtv spent over $100 million, including $35 million in VC funding, trying to dominate the African streaming space.
Still, even with aggressive investments in content acquisition, physical kiosks, and marketing, they couldn’t make the economics work.
Despite intense competition from Netflix, Amazon, Showmax, and Iflix (collectively spending over $1 billion in Africa), no company emerged as a clear market leader in Nigeria.
Njoku often challenged his board’s criticisms by asking a simple question: “If we’re losing, who is winning?” There was never a convincing answer.
Hard Lessons and Market Reality
By 2019, Njoku admitted the signs were already clear—investors didn’t believe in the scalability of paid streaming in Nigeria. What stood out, however, was the success of ROK, iROKO’s content production arm, which accounted for 80% of revenue and only 25% of costs.
The ROK division was eventually sold to Vivendi/Canal+ in a $25 million partial exit, a deal Njoku says should have signaled a pivot much earlier.
Then the pandemic hit, offering a short-lived boom in global streaming, but Nigeria’s economic decline soon erased any gains. Facing ongoing losses, iROKOtv stopped processing naira payments in 2023 and quietly exited the Nigerian market.
“Streaming Wasn’t the Model”
Reflecting with brutal honesty, Njoku admits streaming was the wrong model for Nigeria:
“Our $2,000 GDP per capita couldn’t support a $5/month product. In hindsight, iROKOtv could have reached this conclusion with $5–10 million instead of burning through $100 million.”
He added that content, TV channels, and structured distribution deals were more sustainable business models. The success of ROK with DSTV and SKY reinforced this view. Today, even pay-TV giants like GOtv and DStv are facing market backlash in Nigeria, while streaming titans like Netflix and Amazon have pulled back.
Parting Advice
Njoku offered advice for startups and founders in emerging markets:
- Don’t over-raise capital without fully understanding market economics.
- Timing matters more than vision—being too early can be just as bad as being too late.
- Sometimes, the market wins no matter how hard you try.
“It’s okay that we tried and failed… What’s not okay is ignoring the lessons. The real mistake would be thinking more capital can always fix broken unit economics.”
As iROKOtv fades from the Nigerian tech scene, Njoku’s story stands as a sobering lesson on ambition, endurance, and the brutal truths of operating in unpredictable markets.
Jason Njoku: “We Spent $100M, But There’s No Market for Paid Streaming in Nigeria”