---
title: "Why Afrostream shut down"
description: "Afrostream, a Y Combinator-backed streaming service for African, African-American, and Caribbean content, shut down on September 13, 2017 after failing to secure a Series B round. High content-licensing costs, a marketing budget dwarfed by rivals like Netflix and Showmax, and cash flow problems that left it unable to pay wages forced the closure."
canonical_url: "https://liners.com/graveyard/afrostream"
markdown_url: "https://liners.com/graveyard/afrostream.md"
type: "graveyard"
language: "en"
image: "/graveyard/afrostream/certificate.png"
published_at: "2026-07-31T17:41:07.836Z"
updated_at: "2026-07-31T17:41:07.836Z"
---

# Why Afrostream shut down

Afrostream, a Y Combinator-backed streaming service for African, African-American, and Caribbean content, shut down on September 13, 2017 after failing to secure a Series B round. High content-licensing costs, a marketing budget dwarfed by rivals like Netflix and Showmax, and cash flow problems that left it unable to pay wages forced the closure.

## Breadcrumbs

- [Graveyard](/graveyard)
- [Afrostream](/graveyard/afrostream)

## Summary

Here lies Afrostream. It streamed African, African-American, and Caribbean film to viewers across nearly thirty countries. Licensing costs climbed, a marketing budget no match for Netflix drained the tank, and Series B talks collapsed. The credits rolled before the funding did.

Afrostream, a Y Combinator-backed streaming service for African, African-American, and Caribbean content, shut down on September 13, 2017 after failing to secure a Series B round. High content-licensing costs, a marketing budget dwarfed by rivals like Netflix and Showmax, and cash flow problems that left it unable to pay wages forced the closure.

## Product history

| Field | Value |
| --- | --- |
| Fate | ShutDown |
| Primary cause | FundingRunway |
| Stage at shutdown | Series A |
| Lifespan in days | 1339 |

## Autopsy report

## What the product attempted

Afrostream tried to be the go-to legal streaming service for African, African-American, and Caribbean movies and shows, launching September 2015 and eventually operating across 24 African countries plus France, UK, Belgium, Luxembourg, and Switzerland.

## What worked

Raised $120,000 from Y Combinator (2015) and roughly $4 million in a Series A after Demo Day; reached 10,000 subscribers by April 2016 and operated in nearly 30 countries.

## Early warning signs

Advanced Series B investor discussions collapsed in November 2016; the last prospective investor withdrew on March 17, 2017; the company then spent April-August 2017 unsuccessfully shopping itself to more than 10 potential buyers while cash flow problems made it hard to pay staff.

## What happened

After launching in September 2015 with YC and Series A backing, Afrostream grew to 10,000 subscribers by April 2016, but rising content-licensing costs and a marketing budget it couldn't match against Netflix and MultiChoice's Showmax made retention difficult in a market unaccustomed to paying for streaming. Series B talks fell apart in November 2016 and the last investor pulled out in March 2017; after a failed months-long search for a buyer, founder Tonjé Bakang announced the shutdown on September 13, 2017.

## Sources

- [Case study: Lessons from the Downfall of Afrostream](https://startupgraveyard.africa/blog/case-study-lessons-from-the-downfall-of-afrostream): OkayAfrica
- [I shut down my VoD startup, Afrostream after 2 years. Here's why](https://techpoint.africa/insight/afrostream-shut-down/): Techpoint Africa
- [Africa Roundup: MEST, Airbus and Microsoft expand in Africa, while Afrostream shutters](https://techcrunch.com/2017/10/05/africa-roundup-mest-airbus-and-microsoft-expand-in-africa-while-afrostream-shutters/): TechCrunch
- [In the Wings of Afrostream's Adventure: An Open Letter From Founder & CEO Tonjé Bakang](https://www.okayafrica.com/afrostream-ending-tonje-bakang/): OkayAfrica

## Related pages

- [Afrostream alternatives](/afrostream/alternatives)
- [Liners Graveyard](/graveyard)

## Access and citation

- [Canonical HTML page](https://liners.com/graveyard/afrostream)
- [Markdown route index](/sitemap.md)
- [Agent access guide](/llms.txt)