Lights, Camera Streaming: Nigeria's Video Streaming Revenue Is Expected To Hit $577.40M By 2023

Subscription video-on-demand (SVOD) services in Nigeria have gained popularity as it provides users with complete access to a video library for a recurring monthly or annual cost. These paid subscriptions offer users uninterrupted access to their favorite content on a single platform with no pop-ups or advertising. 

This form of content delivery allows users to choose the time, place, and method of viewing material, providing them with more flexibility and control over their viewing experience.

According to Statista, the revenue generated from Video Streaming (SVoD) services in Nigeria is projected to reach $577.40 Million in 2023. 

The market is also expected to show an annual growth rate (CAGR 2023-2027) of 11.91%, resulting in a robust market volume of $905.70 Million by 2027. Furthermore, the average revenue per user (ARPU) in Video Streaming (SVoD) is projected to amount to $15.04 per user in 2023, and the number of users is expected to amount to 38.4 Million users by 2023, with a user penetration rate of 17.3%.

The user demographic in Nigeria for SVOD services is also interesting. Low-income users account for 25.5%, medium-income users account for 40.5%, and high-income users account for 34%. Female users account for 58.6%, while male users account for 41.4%. In terms of age, 18-24 years account for 30.5%, 25-34 years account for 37.9%, 35-44 years account for 25.9%, and 45-54 years account for 5.7% of users.

From 2017 to 2022, the SVoD market volume in Nigeria has risen significantly. The market volume for SVoD services in Nigeria was $88.19 Million in 2017 and has increased to $468 Million in 2022. As per the Statista prediction, the market volume is expected to reach $905.70 Million by 2027, nearly double the revenue generated in 2022.

When compared to other regions, the SVoD market volume in Nigeria is significant. West Africa is set to hit $800 Million in SVoD market volume in 2023, with Nigeria accounting for 72.1% of the total West African market. Africa is also estimated to reach $1.94 Billion in SVoD market volume in 2023, with Nigeria accounting for 29.7% of the total African market. 

Globally, the SVoD market volume is expected to hit $95.86 Billion in 2023, with Nigeria encompassing a little over 0.6% of the global market revenue.

Finally, FlixPatrol reported that the majority of VOD preferences in Nigeria (by country of origin) are from the USA (51.4%), followed by Nigeria (14.5%), and South Korea (10.8%). Other countries include the UK (4.4%), Spain (2.2%), France (2.2%), South Africa, India, and Mexico

It is important to note that the Nollywood industry in Nigeria might be facing an even worse crisis in the streaming world compared to the cinema industry. However, the SVoD market in Nigeria is continually growing, providing ample opportunities for SVoD service providers to expand their offerings and reach.