The relationship between Netflix and Nollywood producers is under the spotlight with growing concerns about compensation, production standards, and financial accountability shaking Africa’s biggest film industry. While Netflix has not pulled out of Nigeria, there are strong indications of reduced investments in Nigerian Originals, raising questions about the future of Nollywood on the global stage.
Many Nigerian filmmakers believe they are being undervalued. Netflix’s licensing fees for Nollywood films reportedly range from $10,000 to $90,000, a figure significantly lower compared to the multi-million dollar deals the streaming giant invests in regions like Asia and Europe.
For producers, this creates a dilemma: chase Netflix deals at all costs or focus on theatrical releases and local distribution. While Netflix has opened international doors for Nollywood, the pricing disparity has left filmmakers feeling shortchanged.
Another hot-button issue is Netflix’s third-party acquisition model. Some producers say the system lacks transparency and favors a select few, limiting opportunities for upcoming talents. Reports of project cancellations after initial commitments have also fueled frustrations in the industry.
Netflix insists it is committed to Nigerian stories, but the visible slowdown in commissioning new Originals has sparked fears of an investment shift away from Nollywood.
Adding fuel to the fire, comedian and filmmaker Bright Okpocha (Basketmouth) has accused Nollywood producers of mismanaging funds meant for film projects. In a recent interview on Arise TV, he alleged that some producers divert as much as 90% of streaming platform budgets for personal luxuries such as cars and houses, leaving only about 10% for actual film production.
“Our so-called epic movies end up looking more like stage plays because the funds are not going into production quality,” Basketmouth lamented.
He further revealed that some producers exploit actors by demanding kickbacks. Despite Netflix introducing direct payment systems to curb fraud, loopholes reportedly still exist with actors pressured to return half their pay behind closed doors.
The fallout is evident: an industry producing films inconsistently and often falling short of global standards despite having access to streaming platform investments. These alleged practices tarnish Nollywood’s reputation and weaken its position as Africa’s cultural powerhouse.
Basketmouth’s claims spotlight an urgent need for accountability and transparency in Nollywood. Industry experts argue that:
Nollywood remains one of the world’s most prolific film industries with unmatched storytelling power and a growing global audience. But for the industry to thrive, it must confront these challenges head-on.
The current Netflix–Nollywood tension is more than just a funding dispute. It is a test of whether Nigeria’s film industry can evolve into a globally competitive, transparent, and sustainable powerhouse.