Jason Njoku, founder of IrokoTV and once the loudest evangelist for African streaming, has unleashed a scathing post-mortem on his decade-long attempt to dominate Nigeria’s online entertainment market — and it reads like a war diary.
In a brutally honest and emotional account, Njoku didn’t mince words:
“The $100 million we invested in Iroko TV for the Nigerian market was a mistake. If I had another opportunity, I would not do it again.”
That single line hits like a thunderclap, punctuating what is perhaps the most detailed and transparent failure analysis in the history of Nigerian tech startups.
A Dream Fueled by Global Backing
It began with a dream and a big cheque. Tiger Global, the same US-based investment giant that backed Netflix in 2010, pumped millions into IrokoTV in 2011, betting on Nollywood as the next streaming goldmine.
They weren’t alone. Netflix, Amazon, Showmax, and Iflix all joined the billion-dollar scramble to own Africa’s digital eyeballs. But Njoku’s homegrown venture was the tip of the spear — the poster child of “Naija can do it too.”
Instead, it became the ultimate cautionary tale.
Nigeria’s Streaming Graveyard
For more than a decade, Njoku fought tooth and nail to make subscription-based streaming work in Nigeria. From diaspora dollars to daring local moves — kiosk deployment, Android-first apps, peer-to-peer sharing, call agents — Iroko threw every idea in the playbook at the wall.
Nothing stuck.
“We weren’t winning; we weren’t really losing either. We were just there, in full survival mode,” he writes.
Despite raising over $35 million in venture capital, and burning through over $100 million in combined investment and revenue, IrokoTV never found a viable model for Nigeria’s notoriously difficult market.
“The Market Was Winning”
Njoku offers a searing insight:
“If IROKOtv was losing, could they point to someone who was beating us? They couldn’t. The market was winning.”
The admission shatters the myth that all startups need is more capital and better execution. In Nigeria, he argues, the economics simply don’t add up — not for a $5/month premium service in a country where many live below the poverty line.
Even Netflix and Amazon have pulled back their investments. Showmax is still hanging on, but bleeding millions.
ROK: The Golden Goose They Overlooked
Ironically, the part of Iroko that was winning — the content production arm ROK Studios — was almost an afterthought. It had fewer than 30 staff, was profitable, and accounted for 80% of revenue and only 25% of cost.
That division was sold to Vivendi’s Canal+ for $25 million in 2019, earning shareholders a sweet $5 million dividend.
But instead of doubling down on ROK and calling it a win, Njoku and his team continued to pour money into the struggling IrokoTV streaming platform.
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By the time COVID-19 hit, they were financially exposed and emotionally exhausted.
Final Blow: “We Exited Nigeria in 2023”
“We haven’t processed any Naira payments in almost two years,” Njoku revealed.
As of 2023, IrokoTV officially shut its doors in Nigeria, ending a painful chapter in African tech history.
“Streaming wasn’t the winning model for Nollywood in Nigeria. Content, channels, and distribution were.”
Warning to Founders: Don’t Over-Raise
Njoku’s closing words are not just a confession — they’re a warning.
He recounts how he begged other startup founders not to over-raise, recalling Kobo360’s burn through $30 million in a failed logistics war. He says many entrepreneurs believe capital can outwit brutal economics. It can’t.
“With my newfound knowledge, I believe IROKOtv could have reached the same conclusions with $5-10 million versus the $100 million+ we ended up investing.”
Multichoice’s Struggle Is Proof
Even Multichoice, Africa’s most powerful TV giant, is crumbling under the same Nigerian weight, with its H1 reports showing Nigeria as a major drag.
“It’s okay that we tried and failed,” Njoku concludes, but adds sharply:
“Did it need $1B+ to figure this out? Absolutely not.”
If the market could kill Iroko, Netflix, and Amazon — who can survive it?
That question now haunts Africa’s startup ecosystem. Jason Njoku’s $100 million loss isn’t just his story. It’s a mirror — and a warning.