By Sabrina Lynch
- Amazon signed a multi-year licensing deal with Nigerian production company Inkblot
- Nollywood movies annually generate $600M for the Nigeria’s economy
Nigerian production company Inkblot signed a multi-year licensing deal with Amazon (AMZN +0.20%) Prime Video to provide new releases to the video-on-demand platform. The streaming giant is looking to tap into Africa’s film industry that’s set to quadruple revenue to $20 billion. With the battle ramping up between Netflix (NFLX -1.25%), Amazon Prime Video and Disney+ (DIS +0.28%) to grow their subscriber base in the continent, all sights are set on African creatives to attract a wider global audience.
Why This Matters: Inkblot’s studio was the first Lagos-based film company to seal an output agreement with Amazon, opening the doors for other streaming giants to vie for the attention of African audiences. In the past, filmmakers across the continent sternly pushed back on streaming companies over the gaping disparities between the deals they offered for movies & content made across the African diaspora compared to the Asian, American, and European industries. Towards the end of 2021, Nollywood was valued to be worth $6.4 billion and it continues to be one of fastest growing movie markets, outpacing Hollywood and second only to Bollywood.
Most of the creative industries across Africa were underserved due to a horrendous lack of support from policymakers and local officials, but now the tables have turned. Africa’s entertainment boom is giving rise to a more modern digital consumer who, collectively, are on course to drive the value of the e-commerce market to $75 million by 2025.
There are 2.6 million African subscribers who make up 1% of Netflix’s global subscribers alone. This is a clear indication that the growth opportunities cannot be ignored. The competitors are watching closely too, leading Amazon Prime Video to sign an agreement with a second company, Anthill Studios, to double down its commitment to support content from the continent.
Situational Awareness: For a long time, African cultures have been an inspiration to the world through the medium of music, art and film but never given their dues. International investors are now being held accountable to pay creatives what they’re worth for the original content they produce, working to the mutual benefit of both parties.
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