Nollywood's digital revolution: how streaming is reshaping African cinema

Back in the early 2000s, when I was a student at Obafemi Awolowo University, hosting a musical radio show was my gateway into media and entertainment. The station was nearly an hour’s drive from campus, but I made the trip each time, eager to bring fresh sounds to the airwaves. The internet, still a novelty, was my lifeline—I’d head to a cyber café, pay for time on a computer, and browse music news, chart-topping Billboard hits, and download songs to play on my show.

Fast forward to today, and the internet isn’t something I go to—it’s something I carry in my pocket, always within reach. And while I once used it to source information for radio, now it’s the other way around—I’m using it to host my own media platform, this newsletter.

This evolution isn’t just personal. It’s reflective of a broader transformation, one that has redefined how stories are told, distributed, and consumed. Nowhere is this more apparent than in Nollywood, where filmmakers once relied on physical markets like Alaba and Idumota. Today, they’re tapping into streaming platforms—particularly YouTube—as their new frontier, bypassing traditional gatekeepers to connect with audiences worldwide.

This deep dive explores how Nollywood’s digital shift is reshaping African cinema, and what it means for the industry’s future.

This deep dive, originally planned for Wednesday, is dropping a little behind schedule. Still, the timing aligns perfectly with our new editorial rhythm, ensuring the momentum continues.

To keep that rhythm flowing, the weekly roundup edition will now drop on Monday, spotlighting major developments shaping Nigeria's economy, business, and culture.

Now to today’s deep dive. But before we dive in, I want to say a huge thank you to the new subscribers who recently joined—many of you from LinkedIn, where I shared my last deep dive. It’s exciting to see the community grow, and I appreciate you being here as we continue unpacking Nigeria’s most important business, cultural, and economic shifts.

Samuel Okocha, Editor, 234Digest here.

When Living in Bondage debuted in Lagos in 1992, few anticipated the Nollywood revolution it would ignite. The straight-to-VHS drama laid the groundwork for what is known today as Nollywood, Nigeria's prolific film industry, which has since evolved from VHS tapes to YouTube streams in its quest for global expansion.

Nigeria’s Nollywood digital shift began in 2010 when expat Jason Njoku launched Nollywood Love, a YouTube channel streaming Nigerian films. The channel's rapid growth—1.3 million users users within six months —attracted a strategic $8 million investment from Tiger Global Management, paving the way for iROKOtv. Dubbed Africa's Netflix, iROKOtv quickly became the largest on-demand platform for Nollywood content.

The shift from physical to digital markets

For years, Lagos markets like Alaba and Idumota dominated Nollywood distribution, with films sold on CDs and DVDs through street vendors. But the transition to digital platforms was not without hurdles.

Veteran actor and producer Paul Obazele initially equated streaming with piracy, reflecting the industry's broader skepticism toward digital distribution. Many filmmakers feared losing control over their revenue streams, while others struggled with infrastructure challenges, such as limited broadband penetration.

Today, however, YouTube has effectively become a virtual version of Alaba and Idumota, providing global access to Nollywood films while bypassing traditional gatekeepers. Filmmakers like Titi Joseph have fully embraced this shift, using YouTube as a direct distribution channel.

"YouTube gives you control over what you show and how you show it. It's like owning a TV station, but online," Joseph told me in a phone interview in January this year.

The cinema conundrum: a story of growth & accessibility

Despite Nollywood's move toward digital, cinemas have played a significant role in shaping Nigeria’s entertainment culture.

Silverbird Cinemas pioneered the revival of cinema-going in Nigeria,  launching the country's first multiplex in 2004 at the Silverbird Galleria in Lagos. This marked the beginning of a new era, setting the stage for expansions by Filmhouse Cinemas and Genesis Deluxe Cinemas over the next decade.

These multiplexes, often integrated into shopping malls, remain popular entertainment hubs in Lagos, Abuja, and Port Harcourt, providing audiences with a modern cinema experience.

However, these movie theatres—numbering 81 in 2022—remain highly concentrated in major cities, leaving many Nigerians without convenient access to cinemas, especially in underserved regions.

According to the data from the Cinema Exhibitors Association of Nigeria (CEAN), Q1 2025 saw 661,801 moviegoers, marking a 10.9% jump from the same period in 2024 and a 6.7% rise from 2023. This signals continued recovery in cinema attendance, proving that despite economic pressures, the appetite for theatrical experiences persist.

CEAN’s National Chairman, Ope Ajayi, announced in January that Nigeria’s box office revenue surged by 60% in 2024, reaching ₦11.5 billion, up from ₦7.2 billion in 2023.

That said, Hollywood remains dominant. The leading box office performer of Q1 2025 was Disney's prequel, "Mufasa: The Lion King," which grossed ₦618.2 million—highlighting foreign films stronghold on Nigeria's theatrical revenues.

This aligns with past trends: In March 2022, Hollywood accounted for 75% of total box office revenue, according to CEAN's then-president Patrick Lee.

This reliance on Hollywood highlights key financial pressures:

"The holiday period from December through January is when these films dominate," senior analyst at CEAN, Uche Anya, notes in a September 2024 blog post on Rise, a Nigerian owned investment platform, last September. "However, during non-peak periods, ticket sales for local films plummet, and cinemas rely on big Hollywood releases to keep their seats filled."

Even as revenue surge, higher ticket prices and limited geographic accessibility mean many Nigerians are choosing streaming alternatives—pushing Nollywood further into digital-first models.

Streaming's growing edge over cinemas

As inflation erodes disposable incomes, more Nigerians are opting for affordable streaming options over cinema outings.

"Streaming platforms have found a sweet spot, offering people the convenience of watching movies anywhere, anytime," says Bolaji Alonge, a media analyst in the Rise blog post on Nigeria’s declining cinema attendance. "For an average Nigerian, it's easier to pay ₦1,200 for Netflix per month than to go to the cinema and spend the same amount on one movie ticket."

Box office figures reinforce this shift:

This difference highlights that even though movie theater earnings are going up, fewer people are actually going to the movies, signaling a shift away from theatrical releases.

Navigating the streaming shake-up: why Netflix & Amazon are pulling back

While cinemas recorded revenue gains in 2024 and 2025, streaming platforms are expanding—but selectively.

Netflix and Amazon, once bullish on Nollywood acquisitions, have scaled down investment. A major reason? Low subscriber numbers in Nigeria.

Despite being one of Africa’s largest markets, Netflix has just about 169,000 subscribers in a country of over 200 million—a penetration rate far below expectations.

Without a sizeable paying audience, streaming giants are re-evaluating Nollywood investments, leading filmmakers to seek alternative funding from regional platforms like Showmax and iROKOtv. But budgets on these platforms are tighter and competition is fierce.

As a result, many filmmakers are turning to YouTube’s ad-supported model, which provides free content to audiences while generating ad revenue for creators. And the numbers explain this shift:

Yet, financial limitations remain. "For an average YouTube film, you're doing somewhere between two to ten million naira," says producer Tolu Awobiyi in a NewsCentral interview. He notes that about 80% of Nigerian filmmakers end up on the platform due to its accessible, though it doesn’t guarantee significant returns.

That limitation is echoed by filmmaker Moses Iwang, who argues that while YouTube has helped sustain lower-budget productions, it cannot support high-budget Nollywood blockbusters.

“YouTube is a low-budget business model,’’ Moses Inwang said in an interview with ThisDay. ‘‘I make films for ₦300 million to ₦600 million, but I can’t put them on YouTube.   “YouTube is not going to generate the revenue to cover the investment.”

This financially reality forces filmmakers to balance audience reach with profitability, often requiring hybrid distribution strategies—leveraging YouTube for visibility while securing brand partnerships, theatrical runs, and premium streaming deals for higher-budget projects.

Investment & global expansion

Beyond accessibility, Nollywood's financial landscape is evolving. Mo Abudu, CEO of EbonyLife Media, sees shifting global film budgets as an opportunity for Africa. In an interview with Bloomberg, she emphasized that films with $2-10 million budgets can generate tenfold returns, making African storytelling increasingly attractive to investors.

Through the Afro Film Fund, Abudu is targeting $2-8 million productions, ensuring strong marketing and distribution strategies—two elements that have historically limited Nollywood's international growth.

But the biggest global push comes with Abudu's next venture: EbonyLife Place London, the UK's first cinema dedicated exclusively to African films, set to open later this year.

This move mirrors the Afrobeats phenomenon, which has seen African artists like Burna Boy and Wizkid sell out arenas across the UK—a testament to the region's growing appetite for African storytelling. Much like how Afrobeats found a global audience, Nollywood stands to solidify its presence in the diaspora, particularly in cities like London, which has a significant population of African immigrants and long been a strong market for Nollywood films.

"Africa has been silent in telling global stories," Abudu said. "Now, investors understand the real opportunity."

Looking ahead: Nollywood’s next chapter

As Nollywood continues its digital shift, success will depend on investment, capacity building, and adaptation. With fresh funding, new talent, and bold storytelling—and YouTube and platforms like EbonyLife opening new doors—Nigeria's film industry is ready to write its next chapter.

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