IN NIGERIAby Brittney Johns

• In January 2016, Netflix launched in over 130 countries.

• As of April 2016, there are over 81 million subscribers worldwide, with 4.5 million subscribers are outside the United States.

• Reasons for the global expansions are the oversaturated of the United States market.

Netflix Amazon Hulu Crackle0

10

20

30

40

50

60

70

80

90

Number of Subscribers

total subscribers paid & used subscribers

Beat their American competitors in terms of subscriptions, markets, content and revenues.

• Unlike their United States competitors, Netflix has expand to many countries across the world with potential to increase content and revenue.

• Great expansions, comes great opportunities in different markets with unique perspective.

• One country that can offer Netflix generous amount of revenue, opportunities, and content:

Why Nigeria

• Nollywood: generate over USD$3.9billion and produce over 1000 films a week.

• Growing middle and affluent class: 40million of the population are consider in this group.

• Potential mobile market: 150 million mobile subscribers.

• Active internet users: Over 97 millions Nigerians are online.

ISSUES• Inconsistency with the size

Nigerian's middle and affluent class.

• Quality of Nollywood films.

• Piracy: established black market and lack of regulation.

• Availability of the mobile market.

• Internet and mobile data is limited to urban areas, spotty, and expensive.

• Established competitors in Nigeria with a loyal fan base.

Middle Class Divided 34.5 Million $2- $20 per day

“Floating” class 17.25 million $2 - $4

Middle Class 11.55 million $4 -$10

Upper Middle Class 5.7 million $10 - $20

Wealthy Class 4.1 million $20 and above

CLASSIFCIATION OF FILMS NUMBER OF FILMS

IN NAIRA IN USD

Modest-Budget 600 – 700 N10 million and below

$50,000 and below

“B” Films 200 N10 – N20 million $50,000 – 75,000

Blockbusters 100 N50 – N150 million $250,000 - $750,000

Why should Netflix create a digital marketing campaign in Nigeria?

SOLUTIONS

RECOMMENDATIONS• Further research needed to be done in terms of availability of mobile market, audience,

and socioeconomics.

• Wait for the technology to improve and mobile and internet to become more affordable.

• Work with telecommunication companies to make Netflix and data-based package available to subscribers.

• Buy and/or produce Nollywood content for local and international audience.

• Learn the strength and weakness of potential competitors in Nigeria.

STAGES TARGET SUBSCRIBERS REVENUE YEARS

Stage One (Jan. 2016-Jan. 2017) 100,000 $1 million 1

Stage Two (Jan. 2017 – June 2018) 4 million $40 million 1.5

Stage Three (Aug. 2018 – Oct. 2019) 8 million $80 million 1.3

Stage Four (Dec. 2019 – Dec. 2021) 12 million $120 million 2

Stage Five (Jan. 2022 – Jan. 2023) 16 million and more $163 million 1

STAGES

STAGES

• STAGE 1: Wait a year for complete data report on the total number of subscribers in Nigeria.• Numbers positive and reach goal, continue to Stage 2.• Numbers are negative, extended to six months until target reached.

• STAGE TWO: Focus on the affluent class, while start official talks with GSMA companies.

• STAGE THREE: Transition to middle class, preparation for MTN-Netflix Partnership.

• STAGE FOUR: MTN-Netflix partnership debate, Target "floating class"

• STAGE FIVE: Video Compression Testing Begins.

Conclusion • There is great potential for the Nigerian market.

• However, there are some issues that needs to be resolved for Netflix to make the next step.

• Once these issues are settled and follow the recommendations, then they can move forward in creating a digital campaign to grow their audience and raise revenue.