Iroko TV set to list on London’s Alternative Investment Market
West African film-streaming service, IrokoTV, will soon be listed on London’s Alternative Investment Market within the next 12 months, according to Jason Njoku, the CEO.
Njoku said the sale would aim to raise between $20m and $30m, and would value the whole business at between $80m and $100m, as discussions with brokers will start in the coming weeks, since he holds a stake of 18% in the debt-free company.
Iroko, he said, has the world’s largest online catalogue of Nollywood films, as Njoku has redefined the company’s strategy to target diasporic markets in Europe and North America, rather than just having growth in its main West Africa markets of Nigeria, Ghana and Côte d’Ivoire
The CEO attributed the weakness of the region’s currencies and reduced levels of disposable income as a result of Covid-19 as factors that prompted the shift.
According to him, “Consumer confidence has essentially collapsed,” “The macro has dominated us in Africa.”
The company closed its offices in New York and London, and cut jobs last year to reduce costs.
When Iroko started in Africa in 2015, an annual subscription fee of N3,000 was worth $18, he said, that has since reduced to $7.5 at the official naira exchange rate and $6.4 on the parallel market. Iroko responded to the economic crisis in December by raising prices by 3.5 times in Nigeria and Ghana.
Njoku added that, the company is targeting a smaller, more affluent market, as Iroko can afford to lose 70% of customers in Nigeria and Ghana at the new price.
He confirmed that prices for diasporic customers, meanwhile, were increased to $60 per year from $25. The increase was pushed through without any impact on international customer numbers, and that reflects the lack of streaming service alternatives for the West African diaspora, he said.
Mr. Njoku pointed out the number of international subscribers increased last year without the company concentrating on targeting them or spending any money, the company has even been attracting Caribbean subscribers in New York, he equally added.
He noted that, “An international subscriber base is much more sustainable,” the number of international users and average revenue per user are both set to increase in 2021”.
RECOMMENDED ARTICLES
Comment
No comments found.