iROKOtv is an entertainment technology company operating in the Internet and film industries. The company's main services include a Video-on-demand platform for Nollywood content (Nigerian movies), and it also distributes this content globally. It was founded in 2010 and is based in Lagos, Nigeria. In October 2023, iROKOtv ceased operation.
Latest iROKOtv News
Nov 10, 2023
Nevertheless, iROKOtv’s financial trajectory reveals a rollercoaster ride from substantial losses to a more sustainable outlook, per Njoku’s submission. Between 2015 and 2020, the company incurred losses amounting to a staggering USD 30 M in the Nigerian market. However, 2023 paints a different picture, with anticipated losses reducing substantially to approximately -USD 500 K, down from ~USD 4.9 M in 2020. This marked improvement underscores the effectiveness of IROKOtv’s strategic manoeuvres and cost-cutting initiatives which have included layoffs and closing offices. “Where possible, I tried to avoid layoffs. Naturally, firing folks sucks, especially in this crazy Nigerian macroeconomic climate. So if there is a possibility of holding teams together, even if it’s based purely on hope, then I would fund the difference myself,” Njoku writes, revealing that the iROKOtv team had to be whittled down to 51 from 642, and the company is now a fully remote one having moved out of offices in Lagos, London, Accra and New York. Overall costs have been reduced by 80 percent as a result, the CEO says. Njoku acknowledged the challenges and shared his efforts to steer the company through these troubled waters. He reacquired majority ownership of iROKOtv in 2022, injecting personal funds to keep the business afloat. Despite substantial losses, Njoku expressed determination to turn the company around, emphasizing the importance of responsible financial management. Njoku outlined a strategic shift toward international markets, especially targeting the African diaspora in North America and Western Europe, pulling out of servicing viewers in Africa where the appetite for video streaming is growing but local services are struggling. Streaming platforms owned by local telecommunications companies struggle to compete with international players like Netflix and Prime Video, Rest of World reports , and at least four telecom companies have shut down their streaming platforms in the last year. The struggles in making the numbers work in the continent’s challenging markets and shortcomings on the content side are seen as the main obstacles. iROKOtv, now with its eye on the diaspora, increased its subscription prices by 100 percent last month (to USD 9.99 per month) to improve average revenue per user (ARPU) and achieve sustainability. This move aligns with the global trend of streaming services adjusting pricing to balance profitability and content costs. By pivoting towards international markets where a staggering 89 percent of its 2023 revenues have been derived; a strategy that was adopted fully amid economic headwinds in the middle of the pandemic, iROKOtv sought to diversify its revenue streams and mitigate risks associated with volatile local market conditions.
iROKOtv Frequently Asked Questions (FAQ)
When was iROKOtv founded?
iROKOtv was founded in 2010.
Where is iROKOtv's headquarters?
iROKOtv's headquarters is located at 24 Association Avenue, Lagos.
What is iROKOtv's latest funding round?
iROKOtv's latest funding round is Dead.
How much did iROKOtv raise?
iROKOtv raised a total of $35.2M.
Who are the investors of iROKOtv?
Investors of iROKOtv include Kinnevik, Canal+ Group, Tiger Global Management, Rise Capital and Bastian Gotter.
Who are iROKOtv's competitors?
Competitors of iROKOtv include Viacom18 and 5 more.
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