We Spent $100m Trying to Win, But Couldn’t

Jason Njoku, the visionary behind iROKOtv, has officially announced the closure of the pioneering streaming platform.

In a candid revelation, Njoku detailed the uphill battle to sustain the business in Nigeria’s challenging economic landscape.

On his personal blog, Njoku.org, he reflected on the company’s costly $100 million gamble in the local market—a venture that ultimately proved unsustainable.

Njoku’s heartfelt account reads:

“iROKOtv’s journey began in August 2011 with a bold mission: to revolutionize streaming in Nigeria. Backed by Tiger Global, we were part of a global bet on local content dominance in emerging markets—joining the ranks of Netflix, IVI, YY, and Netmovies.

“But Nigeria wasn’t ready. Expensive data, clunky payment systems, and a market still in its infancy meant we had to pivot early. Thankfully, the diaspora became our lifeline—tech-savvy, willing to pay, and hungry for homegrown stories.

“By 2015, we felt prepared to conquer Africa. With $35 million in funding and a decade of groundwork, we poured $100 million into the fight. Yet, despite our efforts, we found ourselves stuck in survival mode—neither thriving nor collapsing, just persisting against impossible odds.

“Streaming is a game of scale, and Africa’s brutal economics made every step costly. Showmax, Netflix, Amazon, and Iflix threw over $1 billion into the ring. We countered with kiosks, call centers, peer-to-peer sharing—anything to stay relevant. But at board meetings, the question lingered: Were we failing, or was the market simply unwinnable?

“In 2019, we sought fresh capital, pitching our resilience as an asset. Instead, investors saw the truth—ROK Studios, our content arm, was the real gem. With 80% of revenue and slim costs, it was a cash cow. We sold a stake to Vivendi/Canal+ for $25 million, paid dividends, and dared to dream bigger.

“Then COVID struck. While Western streaming boomed, Nigeria’s economy crumbled. Borders closed, currencies devalued, and our local base evaporated. We fought on, raising $1.1 million in a last-ditch effort, but by 2023, reality hit: Premium streaming wasn’t viable here.

“Looking back, the signs were there. Nigeria’s $2k GDP per capita couldn’t sustain a $5/month luxury. Even giants like Netflix and Amazon retreated. DStv and GOtv now struggle with the same harsh truths.

“Was $100 million too much to learn this lesson? Absolutely. With hindsight, $5-10 million would’ve sufficed. The real winner wasn’t streaming—it was content, channels, and distribution. Had we pivoted sooner, iROKOtv might’ve been a profitable empire.

“My takeaway? Over-raising kills startups. I warned Kobo360’s Obi before his $30 million round—capital can’t fix broken unit economics. Nigeria’s market is unforgiving, and only those who adapt survive.

“Today, as Multichoice grapples with Nigeria’s drag on its $2.8 billion deal, I’m reminded: Some battles aren’t worth fighting. But I’d rather try and fail than never try at all.”