Video on Demand platform, iROKOtv says it has a target to make about N2tn ($1bn) from online streaming in Nigeria by 2020.
The Chief Executive Officer of iROKOtv,
Mr. Jason Njoku, said this on Monday, days after Ericsson’s ConsumerLab
published its first-ever television and media report for Nigeria, which
indicated that Nigerians spent about N54bn on VoD streaming between
January and September 2015.
Perhaps because of the enormous
opportunities in the market and the N2tn prospect in the VoD sector,
telecommunications company, MTN long ago acquired AfriNolly and DoBox.
Both (AfriNolly and DoBox) are said to pose stiff competition to
iROKOtv.
The Public Relations and Protocol
Manager, MTN Nigeria, Mr. Funso Aina, said, “The MTN DoBox and AfriNolly
came as a game changer to the movie industry in Nigeria. Those who
place premium value on watching movies on-the-go through the use of
cutting-edge technology have been adopting it significantly since it was
launched.”
However, Njoku said the iROKOtv’s vision
was to have one million subscribers in the country by 2020, saying, “If
we can reach that number, then iROKO will be a billion-dollar company.
We simply target $1bn (N2tn). That is what I believe Nollywood, Nigeria
and West Africa deserve.”
He
added, “As a billion-dollar media and technology company, we curate and
export Nigerian culture globally. The industry now needs us as much as
we need them.”
Meanwhile, the Managing Director,
Ericsson Nigeria, Johan Jemdahl, has said the figure of those viewing
online videos will rise because TV and video content consumption is no
longer tied to the traditional TV screen.
“Though television screens remain the
single most popular platform for TV and video consumption, it only
accounts for one-third of the total time spent watching videos.
Sixty-four per cent of the time is spent watching videos on a mobile
device (smartphone, tablet and laptop),” he said.
According to him, today’s viewers of TV
and video content in Nigeria do not want to adhere to a specific device
or schedule, and seek the freedom and flexibility to choose what they
watch, when to watch it and on which device.
“Out of the regular TV viewers in
Nigeria in the survey, only 37 per cent are satisfied with the choice
and variety of available content. They prefer to choose and pay for the
channels that they want. Current pay TV services offer limited
customisation capabilities,” Jemdahl said.
He said, “The proliferation of mobile
devices and availability of mobile broadband have significantly altered
the consumption patterns of TV and video content in Nigeria. With the
ownership of smartphones significantly higher than that of television
and PCs (which include desktops and laptops) and more Nigerians
demanding flexibility in their viewing schedules, the opportunities for
mobile television cannot be overstated.
“Thirty-six per cent of the time spent
watching TV and video content is done on television screens making it
the single most popular platform for TV and video consumption in
Nigeria.
“Fifty-one per cent of consumers want to choose when they watch TV and video content rather than follow a set schedule.”
Meanwhile, the Ericsson Nigeria MD added
that findings from the study also showed that only 27 per cent of
Nigerian consumers streamed videos more than weekly, compared with the
global average of 76 per cent.
“Respondents identified connectivity
issues and restrictive data charges on mobile data as factors affecting
their online streaming experience,” he said.
He added, “Furthermore, the study showed
that the same factors had an impact on piracy. Though global research
has shown a decline in file sharing and illegal streaming services when
easy-to-use and reasonably priced legal VoD services are available,
limitations in connectivity and restrictive data charges drive the
purchase of pirated content on DVDs.
“With TV and media services
accounting for 43 per cent of Nigerian consumers’ entertainment
expenses, as much as 16 per cent is spent on pirated material and the
remaining 27 per cent on pay TV.”
Credit: Punch
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