Has the great Iroko become a glorified DVD stall?


#1

After raising and burning through billions of naira in funding, Jason now says that their grand innovation will be to bet the company on ‘Android Data Free Downloads’

Apparently after all these years they eventually found out that the ordinary African does not have enough data on their phone for downloading many movies(I don’t know how nobody thought of this in the first place). So now you will get your iroko movies through a kiosk located in town or in the local estate. Is it just me or there is no difference between this whole arrangement and DVD stall? Has iroko burned through all that cash to become a 10billion naira DVD stall chain? Please nobody dare tell Kinnevik what other entrepreneurs use to build DVD stalls, they might get multiple heart attacks and die of shock. Or am I missing something here? Surely the great iroko has not pivoted to become a fancy DVD stall?


#2

I hope their new strategy works for them.


#3

Hmm… I wonder what the cost of the kiosks are, relative to them picking up the cost of data per download… is it 1/10, 1/1000, 1/million? Because now they’ve introduced friction: the effort to get a movie via Iroko just went up 1000-fold.

These guys have been pivoting this way and that for over the past 5 years, still no real sustainable business. To be sure, they have revenue, and they’re still sitting on a pile of cash, but they still haven’t found something that makes business sense for the market they’re in.

What I did like was the move to producing their own content… there’s a sustainable model.