IROKOtv to lay off 150 staff, reduce investment in Africa

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

IROKOtv is laying off around 150 staff and reducing its investment in Africa. The fluctuating exchange rate devalued its ₦3,000 annual plan in Nigeria from $18 before 2016, to $6 today. IROKOtv plans to place more focus on its international market, which generates a higher average revenue per user (ARPU) for the company and represents 80% of its revenue. IROKOtv is liaising with organisations for work placements for laid-off staff.

There will be around 150 job losses. We are still working on the numbers, and in order to soften the blow, we are speaking with a number of companies who have taken an interest in our highly trained telesales agents.

IROKOtv to lay off 150 staff, reduce investment in Africa

“The ambition in this terrible job market is to try and give our departing teams the best odds of success in what is, unfortunately, one of the worst job markets in decades. We wish them well on their adventures, it is no fault of their own. They definitely tried their best. We all did,” he wrote.

He also noted that his firm will focus more on North America and Western Europe subscribers that account for more than 80 per cent of revenues.

- Advertisement -

According to him, the devaluation of Naira dropped the platform’s subscription costs from N3,000 ($18) in 2015 to N3,000 ($8.33) by 2017.

Read Also:  The Nigerian market may not be ready for an online-only VoD platform

Currently, subscription to the platform costs $6.3 with a dollar equivalent to N477.

Mr Njoku said it was rather strange to be finding out after almost nine years with IROKOtv, five exclusively focused in Africa, that the brand “may be too early for Africa”.

According to him, business models have attempted to crack the consumer economy in Africa to no avail.

- Advertisement -

“Classifieds didn’t work. Lead generation didn’t work. E-commerce didn’t work. Free didn’t work. If we only had the Africa market (like so many before us who failed) then this post would be RIP IROKOtv. Thankfully we have an international business to fall back upon”.

Interestingly, while the company’s fortunes are dipping in Africa, business is booming internationally with the average revenue per user in the west between $25 and $30.

“Our annual ARPU internationally is $25-30. When people talk to me about Netflix and its impact globally, and then in Africa, I always smile. My response is the same. Globally, streaming media is booming. In Africa, it is regressing. It’s impacting everyone,” he wrote.

Read Also:  StarTimes Launches “Pay-For-2-months-get-2-weeks- Free” Subscription Promo

iROKOtv was launched on December 1, 2011. Dubbed the ‘Netflix’ of Africa, it is the world’s largest legal digital distributor of African movies.

- Advertisement -
IROKOtv to lay off 150 staff, reduce investment in Africa - Brand SpurIROKOtv to lay off 150 staff, reduce investment in Africa - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

1 COMMENT

  1. Thank you a lot for sharing this with all folks you really understand what you are talking approximately! Bookmarked. Kindly additionally discuss with my site =). We can have a link change contract between us!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

IROKOtv to lay off 150 staff, reduce investment in Africa - Brand SpurIROKOtv to lay off 150 staff, reduce investment in Africa - Brand Spur

Latest News

Standard Chartered partners with Vetifly to Provide convenience for Clients

Feb 26, 2021: Standard Chartered Bank Nigeria entered a unique partnership with Vetifly. This on-demand helicopter service flies from Victoria...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -IROKOtv to lay off 150 staff, reduce investment in Africa - Brand SpurIROKOtv to lay off 150 staff, reduce investment in Africa - Brand Spur