Netflix, licensing Nigerian movies and last man standing

Ace comedian, Bright Okpocha AKA Basketmouth, who recently became a filmmaker, made his name by making people laugh. But last week, some of those who had found him funny, notably within Nollywood, had their mood ruined by an interview he granted to Arise TV.  The interview followed a rumour-presented as news-that Netflix, the streaming platform, was exiting Nigeria because of the country’s stifling economic conditions. The speculation got immense traction in the digital space, provoking hot takes over what actually was a misreporting of the streaming platform’s change in business strategy.

The rumour appeared to have had its roots in the comments of Victor Okhai, President of the Directors Guild of Nigeria, who stated at the Zuma Film Festival that Netflix is slowing down it the funding of Nigerian films in November. It gained more speed when producer, Kunle Afolayan, at another forum, explained that Netflix was making adjustments to its funding and operational structures. That was seized upon and made into an exit story, with Netflix listed as the latest in a long line of businesses forced out of the country in the last 18 months on the back of asphyxiating operating conditions.

But Netflix rebutted the rumour, saying: “We are not exiting Nigeria. We will continue to invest in Nigerian stories to delight our members.”

Netflix did not share why it took the decision to scale back on original productions. That gap was filled by Basketmouth who, in the interview with Arise TV, simply hurled a grenade. More than 70 per cent of Nollywood producers, he alleged, divert the lion’s share of budgets allocated for film funding by streaming platforms to opulent lifestyles.

“When the streaming platforms came in, they provided significant funding to producers. But these producers would take the $1.5 million or whatever they’re given and use about 10 per cent to make the movie. The rest? Houses, cars, and personal expenses. I can’t call names, but they know themselves,” he said.

More was to come, with Basketmouth also stating that producers inhibited the realization of Netflix’s objective of coaxing top-tier performances from actors by paying them directly. The producers, he said, went behind to take money off the actors, thereby affecting the quality of their output.

“I’m not generalizing, but most of them-70 per cent or more-misuse these funds. When the platforms noticed, they started paying actors directly to ensure transparency. But even then, these producers would go behind the scenes and demand that actors return half of their pay…If you’re given $1.5 million to make a movie, use it all for the production. That’s how you get quality, but cutting corners for luxury and lifestyle shows in the final film product,” added Basketmouth, who released his debut film, A Ghetto Love Story, in November.

The allegations provoked conversations, conducted with traffic warden energy and with with public sentiments on Baskemouth’s side. The industry has not responded. Does its silence mean acquiescence? I will err on the side of incaution. However, I do not believe that it is was the only factor in Nextflix’s decision to reassess its business model.

Ten months back, Amazon Prime Video, Netflix’s rival, downsized its Africa and Middle East operations in a move that saw the platform end licensing of originals in both markets. Nigeria and South Africa, where it had set up teams, were naturally the hardest hit on our continent.

StarTimes, the Chinese-owned pay television platform, said industry sources, has retreated from licensing originals after Ile Alayo, Okrika, Sparadise and Hello, Mr. Right on account of the harsh economic climate. Dipping subscription figures, occasioned by economic reforms of the current administration and attendant inflation, have forced the company to shift its focus to providing alternative power through its StarTimes Solar.

It is hard to blame StarTimes for shifting focus or Netflix and Amazon Prime for recalibrating their business strategies, given the country’s economic challenges such as high inflation and a fluctuating currency that are certain to have made subscription margins a lot less lucrative. There is also the not exactly small matter of that the the cost of producing high-quality content that are stretching resources.

The implications of these for Nollywood could be profound. Filmmakers, who have relied on backing from many sources now seem to have only one-MultiChoice which, in spite the grim economic weather, is not shirking the challenge of investing in premium content. On its AfricaMagic platform, the coming quarter will see the launch of titles like Real Housewives (Season 3), Uriri, an epic fantasy drama; PTA, Deeper, a three-part series; as well as local language shows like Inu Jin, Obi Di Omimi and Buri Season 2. This will begin to air in the next few weeks, while Alex from Oil and Gas as well as The Good Shepherd will launch soon after.

Last man standing? There should many men standing. To remain standing requires watermelon-size balls, given how tough the operating environment is at this time. It also takes that takes resilience and perhaps, other-worldly faith in the place of operation and the people, of which the platforms scaling back may have lost more than a little. There is no doubt that roll back by the other platforms will bring about a reduction in opportunities as well as a dip in production standards, both of which will leave Nollywood in a less than happy place.

https://thenationonlineng.net/netflix-licensing-nigerian-movies-and-last-man-standing/