We spent $100m trying to win, says Jason Njoku on IrokoTV shutdown

Jason Njoku, the CEO of IrokoTV, has opened up on the challenges that plagued the movie streaming platform in Nigeria.

In a web publication, Njoku described the company’s $100 million investment in the local market as a costly mistake.

He said the platform, which was founded in 2011 and launched in 2015, was operating in “full survival mode” in the first ten years.

Njoku said the company was faced with several obstacles and struggled against competitors like Netflix, Amazon, Showmax, and Iflix.

“Between the revenues we generated and the venture capital we raised ($35 million) over the first ten years, we easily spent $100 million trying to win,” he said.

“But we weren’t winning; we weren’t losing either. We were just there, in full survival mode, operating in the toughest conditions possible.

“The local market in Nigeria simply collapsed. We saw it and stubbornly decided to keep investing and doubling down until we were all tapped out, having burnt through most of the post-exit capital.

“In 2023, we finally accepted there was no market for paid premium services and exited Nigeria.

“We haven’t processed any Naira payments there in almost two years.”

The entrepreneur noted that streaming wasn’t the right model for Nollywood in Nigeria.

Njoku added that ROK Studios, the production and distribution arm of the company, turned out to be the most profitable.

“It’s okay that we tried and failed. It’s okay that we accept the limitations in the domestic market we find ourselves in. Did it need $ 1 B+ to figure this out? Absolutely not,” he said.

“I believe, with my newfound knowledge, that iROKOtv could have reached the same conclusions with $5-10 million versus the $100 million+ we ended up investing.

“In hindsight, streaming wasn’t the winning model for Nollywood in Nigeria. Content, channels, and distribution were.

“With the economics that business had in 2018, we could have shut down iROKOtv and its $5 million/year in losses and either listed it or just had a fantastically profitable business.

“My lessons were expensive, and that’s why I am so consistent in telling founders not to over-raise.

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