Content streaming service providers, Amazon and Netflix as well as pay television channels, iROKOtv, and Africa Magic are considering halting further investments in the Nigerian content industry.
The four platforms, according to reports gathered have been forced to consider discontinuation of investments in Nigeria because of the 6th Broadcast Code recently released by the National Broadcasting Commission (NBC).
Creative and broadcasting industry sources disclosed that four platforms, which have invested enormously in local content production that are exclusive to them, are convinced that the new broadcast code is a huge threat to their investments, as it seeks to end exclusivity to broadcast properties and compel re-sale or sub-licensing to other broadcasters, including direct competitors.
According to sources, the new code makes exclusivity illegal, compels content sub-licensing, and aims to regulate the prices at which content is sub-licensed. According to an industry source, the broadcast platforms view Sections 9.0.1 to 9.0.3 of the broadcast code represent a direct assault on investors, as it erodes the possibility of reaping dividends on their investments.
“These sections prohibit broadcasters from entering into rights acquisition agreements that do not allow the sub-licensing of such rights in Nigeria.
The implication of this, explained the source, is that investors, who fund the development of hit movies, series, and shows, will be forced to sub-license that programme irrespective of whether or not they have recouped their investments.
Netflix, African Magic, Amazon and IrokoTV have invested heavily into the Nigerian Entertainment industry, bringing this new rule won’t be favorable to them considering the facts that they’ve not completely recouped their investment.
If Netflix, Amazon, Africa Magic, and Irokotv should halt their services and leave Nigeria, what will become of the Nigerian entertainment scenes?