Since its entry into the African market in 2016, Netflix has invested $175 million in film production, creating more than 12,000 jobs in the process. The streaming giant has focused its operations on three sub-Saharan African countries: Kenya, Nigeria, and South Africa. The latter is the largest contributor of content to the site.
According to a socio-economic impact report from Netflix, the company’s investments in films, documentaries, and reality shows have created thousands of jobs each year for cast and crew, as well as for workers in transport, costumes, design, catering, and other sectors. These investments have also contributed to the growth of the gross domestic product value, tax revenues, and household income in the three countries.
In South Africa, Netflix’s operations have generated $90 million towards the gross domestic product value, $14 million in tax revenues, and $70 million of increased household income. Similarly, in Nigeria, the company’s activities have generated $48 million towards the gross domestic product value, $8 million in tax revenues, and $37 million of increased household income. In Kenya, Netflix’s investments have generated $80 million towards the gross domestic product value, $22 million in tax revenues, and $93 million of increased household income.
In addition to providing financial support for film production, Netflix has also made significant efforts to boost the skills of local actors, thereby promoting the growth of the African movie industry. As part of a memorandum of understanding signed with the ICT ministry, the streaming giant provided a Sh33 million kitty to support the production of three Kenyan movies. This investment is expected to contribute to the creation of more jobs and revenue in the country.
The positive impact of Netflix’s investment in the African film industry is undeniable. It has not only created thousands of jobs but also contributed to the growth of the local economies. Moreover, it has helped to showcase African stories and talent to a global audience, thus promoting the continent’s cultural heritage.
However, Netflix faces growing competition from rival streaming services such as Disney, Apple TV, and HBO Max. In response, the company has cut its subscription prices for its Kenyan clientele by an average of 37 percent this year, as part of incentivizing its service in the wake of rapidly growing competition.