- Since its entry into Africa in 2016, video streaming giant Netflix has invested a total of $175 million in the continent’s film production, creating over 12,000 jobs.
- Africa’s film industry accounts for $5 billion of the continent’s GDP and currently employs five million people with the potential to create 20 million jobs
- In the period, Netflix’s activities in the three countries generated $218 million towards the gross domestic product value, $44 million in tax revenues, and $200 million worth of increased household income.
Africa’s film industry has been on a growth path with local content production taking center stage, a trend that has attracted global players such as US-based video streaming giant Netflix, which has identified the potential and is investing heavily in the vibrant entertainment segment.
US-based Netflix says it has spent $175 million in film production in the continent’s leading markets of Kenya, Nigeria, and South Africa since it gained entry in 2016.
Netflix’s investments in Africa’s film industry come at a time when the industry is rapidly growing, with local content gaining popularity across the globe. Africa, a continent of 54 countries is home to about 1.4 billion people, and accounts for a combined Gross Domestic Product (GDP) of $3.1 trillion.
Africa’s film industry contributes roughly $5 billion of the continent’s GDP and currently employs five million people but it has the potential to create 20 million jobs and generate $20 billion in annual revenues.
The report highlighted the socio-economic benefits of Netflix’s investments in the African film industry. The company has created over 12,000 jobs, both directly and indirectly, through its activities in the three countries. The investments have also boosted associated sectors such as transport, costumes and design, catering, and others, creating additional job opportunities for the people.
“Having injected over $175 million into sub-Saharan Africa since 2016, providing employment to more than 10,000 people on our productions, watching our local storytelling partners shine in far-flung reaches of the world, we can attest to the fact that there is a huge socio-economic benefit that Netflix injects into the ecosystems where we operate,” said Netflix director of public policy, sub-Saharan Africa, Shola Sanni.
“We were thrilled by the significant milestones that our investments delivered within a relatively short frame of time, particularly in South Africa, Nigeria and Kenya.”
The company’s activities in the three countries have generated $218 million towards the gross domestic product value, $44 million in tax revenues, and $200 million of increased household income. These numbers demonstrate the positive impact that foreign investment can have on local economies and the potential for further growth in the African film industry.
Netflix’s investments in South Africa
Netflix’s entry into South Africa in 2016 marked the beginning of a gainful collaboration with local creators and distributors to showcase the country’s creativity and talent to a global audience. To date, the streaming giant has invested over $125 million in productions and licensed over 170 titles, including 16 Netflix Original South African series such as “Queen Sono” “How To Ruin Christmas: The Wedding,” and “Blood & Water.”
The report further highlighted that Netflix invested a total of $1.8 million in various initiatives to support the film and TV industry in South Africa. This includes $240,000 for a skilling programs that benefited 50 people, $966,000 with NVFV to support local filmmakers, and $572,000 for a Covid relief fund that helped 555 industry workers.
Netflix also partnered with organizations such as Durban Film Mart, Gauteng Film Commission, the Realness Institute, and The MultiChoice Group to develop the audio-visual sector and increase access to local content. In June 2022, Netflix collaborated with Johannesburg-based visual effects and animation studio, Chocolate Tribe, to host a free public event called AVI Jozi Animation and Visual Effects. This event aimed to showcase the technical and creative aspects of the industry to South African youth through industry expert discussions, show-and-tell sessions, and film screenings.
Netflix’s investments in Nigeria
In 2016, Netflix entered Nigeria and quickly contributed to the growth of the second-largest global film industry by providing high-quality local content to its service. Netflix has invested over $23 million in local licensed titles, co-produced and commissioned film content since 2016. The introduction of Nigerian Netflix originals such as Anikulapo, Blood Sisters, Far From Home, Shanty Town, and King of Boys has been hugely successful.
The investment of over US$ 23 million has had a significant impact on the Nigerian economy by contributing US$ 39 million towards GDP, US$ 34 million towards household income, and US$ 2.6 million towards tax revenue, and supported 5,140 jobs throughout the economy.
The Netflix Fund for Creative Equity provided funding to five universities and film schools in West Africa, covering full tuition and living costs for students, and provided 52 scholarships to up-and-coming creative talent from four West African countries.
Netflix also provided direct grants to film schools to reduce the cost of admissions and improve access for underprivileged students. Additionally, Netflix disbursed $500,000 towards the Film and Television Relief Fund that provided short-term relief to below-the-line workers who were unable to earn a living during the COVID-19 pandemic. Terra Kulture, an arts and culture centre in Lagos, received a donation from the fund.
The company also funded academic training and promotion of Terra Kulture’s various artistic and cultural projects. Finally, Netflix provided a ten-week post-production training workshop at the KAP Film and Television Academy for ten aspiring film editors, after which they received a certificate from the USC School of Cinematic Arts and KAP.
Read: Screen and integrate: African films unify the continent
Netflix’s investments in Kenya
Netflix has played a significant role in supporting and advancing Kenya’s creative industry. An agreement signed with the Kenyan Ministry of ICT, Innovation and Youth Affairs in May 2022 outlines a cooperative effort to develop skills and capacity, create creative sector infrastructure, allocate funds for marketing and media spending, and invest in local content.
Netflix’s dedication to strengthening the industry is evident through the successful launch of the first Kenyan Netflix original series ‘Country Queen’ in July 2022, with two additional titles currently in production. Netflix has also entered a two-year agreement with the Ministry of ICT, Innovation and Youth Affairs to enhance skills and capacity development.
The company is further supporting the Kenya Film Commission by assisting with capacity development and creating a screen production sector incentive. Additionally, 46 beneficiaries from five East African countries are receiving scholarships from the Creative Equity Scholarship Fund to study at various universities in Kenya.
In Kenya, Netflix launched a program to support the production of three local films with a kitty worth $246,266. The program aimed to train actors and improve skill capacity in the local movie industry, demonstrating the company’s commitment to investing in local talent and empowering the industry.
As one of the largest video streaming services globally, Netflix boasts over 222 million subscribers covering 190 countries. However, the company faces stiff competition from rival streaming services such as Disney, Apple TV, and HBO Max, leading to a decline in subscribers in the first quarter of last year. In response, the company has been forced to cut subscription prices for its Kenyan clientele by an average of 37 percent to remain competitive in the market.
