Over the last decade, there has been an influx of streaming giants into the African market, a market that has long been ignored.
These streaming giants are vying to secure their share of the market in Africa’s thriving creative entertainment industry, largely driven by a growing population and a dynamic digital landscape.
Among all the streaming platforms, Netflix has emerged as a standout player and has become a household name on the continent. Commendably, the streaming giant’s influence extends beyond mere entertainment and also has a significant economic impact.
Since entering key countries in sub-Saharan Africa (SSA), Netflix has been contributing across economic sector value chains within and adjacent to the cultural and creative industries and stakeholder ecosystems
From 2016 through 2022, Netflix has invested $175 million in content and in the local creative ecosystems in South Africa, Kenya and Nigeria combined, according to its impact report.
Netflix has supported over 12,000 jobs, contributing a total of $218 million to GDP, generating more than $44 million in tax revenue, and increasing household income by over $200 million.
During the seven years, the online video streaming giant has focused its operations on these three sub-Saharan African countries, with South Africa ranking as the continent’s largest contributor of content to the site.
Below is a compilation of Netflix’s contributions to the GDP of African countries in 2022:
South Africa – $178 million
Netflix launched in South Africa in 2016 and has been working with South African creators and distributors to bring high-quality series and films that showcase the best of South Africa’s creativity and talent to our global audience.
The company has invested in 170+ licensed titles and commissioned 16 Netflix Original South African series, such as Queen Sono, How To Ruin Christmas, The Wedding and Blood & Water.
Having invested over $125 million in productions between 2016 and 2022, Netflix has made significant contributions to the economy. These contributions include a boost of $178 million towards GDP, an increase in the income of local people by USD 167 million, $41 million towards tax in South Africa, and the creation of over 7,000 job opportunities across the economy.
Nigeria – $39 million
Netflix was launched in Nigeria in 2016, and has swiftly uplifted the world’s second-largest global film industry by adding its high-quality local content to its service.
Recent years have witnessed hugely successful Nigerian Netflix originals enter the Netflix service, such as Anikulapo, Blood Sisters, Far From Home, Shanty Town, and King of Boys.
Over USD 23 million has been invested since 2016 in over 250 local licensed titles, co-produced and commissioned film content. Netflix’ investments has contributed $39 million towards GDP, $ 34 million towards household income, and $ 2.6 million towards tax revenue. In total, 5,140 jobs were supported throughout the economy.
Kenya – $1 million+
Netflix in Kenya has been a major pillar in supporting and developing the country’s creative industry. Netflix’s commitments to strengthen the industry have been reflected in the launch of the first Kenyan Netflix original ‘Country Queen’ in July 2022, with two more titles in various stages of production.
While no precise GDP contribution figure was disclosed for Kenya, it is safe to assume that Netflix’s contribution to Kenya’s GDP exceeds $1 million, considering the total contribution across the three countries.
