IROKO TV Subscribers Down By 70%, Company Seeks To Refocus Outside Africa
IROKO, the Nigerian video-on-demand company is reportedly shedding 150 jobs, as it also looks toward North America and Europe to help starve-off the loses it is currently experiencing.
Disrupt Africa.com reported that between April and July 2020, IROKO had lost about 70 per cent of its subscribers. And IROKO's chief executive officer Mr Jason Njoku attributed the losses to the impact of COVID-19, the devaluation of the Naira (the Nigerian currency) as well as adverse effects from amendments to the Nigerian broadcasting regulations.
Njoku says that while it is losing subscribers in Africa, and has an accumulated lifetime operating loss of over US$30million," the company is "growing effortlessly outside the continent". Njoku now wants to defocus the business in Africa.
According to IROKO's CEO: "Even after pushing incredibly hard in Africa for the last five years, our international business represents 80 per cent of our revenue today, so by taking out Africa growth-related costs, we cut our US$300,000 per month burn to less than US$50,000 a month". It's a strange thing to realise that even after almost nine years with IROKOtv, five exclusively focused in Africa, we still may be too early for Africa." said Njoku.