Nollywood reviews distribution to boost revenue, curb pirates

The movie distribution system in Nigeria is being restructured to expand viewership, undermine pirates,  ensure increased revenue to legitimate channels and track sales.

Under the new plan, first rate Nigerian (Nollywood) movies will first go to the cinemas, then be streamed online and consequently be shown on in-flight TV, before  going on DVD and finally  to terrestrial TV.

Disclosing this to BusinessDay in  Lagos, Kene Mkparu, CEO, Filmhouse Cinemas, said the new distribution system makes it possible for a good film to generate much more money than is the case currently, because it has expanded channels, multiple platforms and checks against piracy.

Mkparu explained that the old model of shooting straight to DVD was changing, as a good film must first go to the cinema, be streamed online, be shown on in-flight TV before it goes on DVD and later TV.

He observed that a film maker whose film goes through this full circle would make  better return on investment.

Meanwhile, Roberts Orya,managing director/chief executive officer Nigerian Export-Import Bank (NEXIM), said in an earlier report that Nollywood generated not less than $590 million in 2014.

Orya said Nollywood produces about 50 movies per week, making it the second largest film industry in the world, behind India’s Bollywood, in terms of volume of production. In revenue, Nollywood is third, behind Hollywood and Bollywood.

“Current estimates put its (Nollywood’s) annual revenue at an impressive $590 million,” Orya said. “Africa Renewal, a publication of the United Nations, reported in its May 2013 edition, that the African film industry (in which Nollywood is by far the dominant player), would contribute significantly to the expected 5.2 percent GDP growth projection for the continent last year.”

The global film and entertainment industry generated about $90.6 billion revenue in 2010. The revenue increased to $102.7 billion in 2012. Most of these revenue streams are largely from theatrical distribution. North America contributed the largest market share of about 40 percent. Europe, Middle East and Africa accounted for 24 percent, Latin America 20 percent, and Asia Pacific made only three percent contribution.

Last year, Ayo Makun’s film ‘30 Days in Atlanta’ was adjudged as the film with the highest revenue, making N76million in seven weeks of showing on Cinema screens across the country.

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“That it is N76million is quite impressive for a Nollywood film,” said Guy Bruce, director, Silverbird Distribution Company.

However as at January 2015, Mkparu said ‘30 Days in Atlanta’ had surpassed the N76m December 2014 mark, as it had made N135 million and they are still counting.

“The new distribution line makes it possible for us to track the success and sales of a movie at the cinema. Currently Nollywood films are in high demand, more than American films. You won’t believe it that ‘30 Days in Atlanta’ beats American film ‘Avengers’ at the cinemas,” explained Mkparu.

Truly, not a few well-produced films have been commercially successful at the cinemas. In 2013, ‘The Meeting’ produced by Mildred Okwo and Afolayan’s ‘Phone Swap’ also recorded huge commercial success. In 2009 for instance, Stephanie Okereke’s movie, ‘Through the Glass,’ premiered at the cinemas making over N10 million. This was followed by Kunle Afolayan’s ‘The Figurine’ becoming the first local film to make over N30 million in the cinemas. Chineze Anyaene’s film, ‘Ije,’ also recorded tremendous success at the cinemas, making over N57 million. In 2010, ‘Ije’ was reputed to be Nigeria’s highest selling movie in the cinemas, returning to the cinemas three times that year. Its success was next to Hollywood’s ‘Avatar.’ ‘Anchor Baby’ produced by Lonzo Nzekwe, also made over N17 million.

Victor Okhai, film maker, says a new crop of film makers began to bring professionalism into the industry, which explains the improvement in the quality of films produced lately.

Those who fall into this group are Tunde Kelani, with movies like ‘Thunderbolt’ (‘Magun’), Tade Ogidan with ‘Dangerous Twins,’ Richard Mofe Damijo’s ‘Out of Bounds,’ Ego Boyo, with ‘30 Days,’ the Amstel Malta Box Office series, to mention but a few.

“It is expected that the quality of films will improve. We are at a stage where we can no longer play the mediocre anymore. We have discovered that when we attend film festivals, we realised that nobody pays attention to Nollywood films.

“They look at the industry with disdain at these film festivals. Then local film makers came back home to do some serious work. Many film makers are challenged by what they see at film festivals,” he explained.

Moses Babatope, executive director, Filmhouse Cinemas, projected that based on the statistics on the visitors to the cinemas, ‘30 Days in Atlanta’ may gross over N100million in 2015. This giant leap taken by films like ‘30 Days in Atlanta’ in 2014 has been attributed to the drastic improvement in production quality of Nollywood films, pioneered by film makers like Tunde Kelani.

Meanwhile, Euromonitor International and Reed Exhibitions, the organisers of the World Travel Market, a global event for the travel industry, were cited by Africa Renewal, as saying that the Nigerian film industry will continue to drive domestic and regional tourism.

The entertainment sector is job-rich. It is now reputed to be the second highest employer of labour in Nigeria, after agriculture.

“Characteristically employing pools of young people with diverse skill sets, the Nigerian film industry alone currently employs more than one million people. When cinemas arrived in Nigeria, much of the movies that moviegoers were treated to came from Hollywood, Chinese and Indian films.

“However, over the last decade, Nollywood films have become staples of Nigerian cinemas. This experience has further deepened the cinema culture in Nigeria, as Nollywood film producers and directors with considerable investments in both equipment and training, have significantly improved the quality of Nigerian films,” added Orya.

Gabriel Okoye, CEO, G-Media said Nollywood would have generated more revenue, but that the growth of the industry is stifled by piracy and a poor distribution frame work.

According to him, his outfit, G-Media is taking a bold step to curb piracy by repackaging well produced Nollywood films, thereby building a platform for proper film distribution and marketing.

“What we are doing,” said Okoye, “is taking a step to set a standard and eventually curb piracy. We are saying if we can revolutionise the distribution of our works in the creative industry, things will change. We are seeking to monetise the creative industry so that in years ahead, we can reap the fruit if our labour.”

FUNKE OSAE-BROWN