Long

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Tribe

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<p>Nigeria’s film industry, Nollywood, has been a powerhouse of storytelling and entertainment for decades. The industry is valued<a href="https://www.arise.tv/at-6-4bn-nollywood-ranks-second-fastest-growing-movie-industry-globally-says-bank-ceo/" target="_blank" rel="noopener"> at a staggering $6.4 billion</a> (as of 2022) and boasts the title of the world’s second-largest film producer by volume. This growth has been driven by the sheer volume of productions and the widespread popularity of Nollywood films across Africa and the diaspora.&nbsp;</p> 
<p>With over <a href="https://libguides.northwestern.edu/nollywood" target="_blank" rel="noopener">2,500 films produced annually</a>, Nollywood has carved out a significant niche in the global entertainment landscape.</p> 
<p>Nollywood is, however, at a crossroads. The continuous rise of streaming giants like Netflix presents a tantalising opportunity: global reach and potentially lucrative distribution deals.&nbsp; Yet, the traditional cinema experience still holds a certain appeal (even with <a href="https://businessday.ng/life-arts/article/nigerian-cinemas-record-revenue-boom-amid-turnout-dip/" target="_blank" rel="noopener">a 4% decrease in admissions in the past year</a>), particularly for some audiences and genres.&nbsp;</p> 
<p>With the advent of digital technology and changing consumer preferences, Nigerian movie producers now face a critical choice: should they premiere their films on streaming platforms like Netflix or in traditional cinemas?&nbsp;</p> 
<p>In this article, we analyse the strengths and weaknesses of both options using 4 major indices:</p> 
<h5 id="1-market-reach-and-accessibility" class="wp-block-heading">1. Market, reach and accessibility</h5> 
<h6 id="netflix" class="wp-block-heading">Netflix:</h6> 
<ul> 
 <li><strong>Global audience</strong>: Netflix has about 269.6 million paid subscribers worldwide as of the first quarter of 2024, according to <a href="https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-worldwide/#:~:text=Netflix%20had%20around%20269.6%20million,compared%20with%20the%20previous%20quarter." target="_blank" rel="noopener">Statista</a>. This global reach offers Nigerian films a vast audience beyond the local market.</li> 
 <li><strong>Local presence</strong>: Netflix has been expanding its footprint in Africa, particularly in Nigeria. It actively seeks Nollywood content, increasing opportunities for local producers. For instance, the “<a href="https://technext24.com/2023/09/24/no-drama-the-black-book-movie-review/">Black Book</a>” produced and directed by Editi Effiong is the <a href="https://businessday.ng/life-arts/article/netflixs-subscriber-numbers-reflect-nigerias-economic-struggles/" target="_blank" rel="noopener">biggest movie from Nollywood on Netflix</a>, having notched 11 million views as of November 2023.&nbsp;</li> 
</ul> 
<p>It was on <a href="https://www.netflix.com/tudum/top10/nigeria?week=2024-01-07" target="_blank" rel="noopener">Netflix’s Top Ten list for nine weeks</a> as of January 2024 in Nigeria. It spent three weeks on <a href="https://www.netflix.com/tudum/top10/nigeria?week=2024-05-05" target="_blank" rel="noopener">Top Ten</a> in countries like the Dominican Republic, Jamaica and Panama. It is also the most expensive movie ever made in Nollywood, given its $1 million budget.&nbsp;</p> 
<p>Another film, “Áfàméfùnà: An Nwa Boi Story”, stayed Top Ten on Netflix for seven weeks after its release in the cinemas.&nbsp;</p> 
<figure class="wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex"> 
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  <img loading="lazy" decoding="async" width="1600" height="900" data-id="232057" src="https://technext24.com/wp-content/uploads/2024/05/top10-films-nigeria-7-jan-1-jan-7-2024-1.jpeg" alt="Image: Netfix" class="wp-image-232057">
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  <img loading="lazy" decoding="async" width="1200" height="1200" data-id="232056" src="https://technext24.com/wp-content/uploads/2024/05/top10-films-nigeria-10-may-6-may-12-2024-1.jpeg" alt="Netflix vs. Cinema: The best platform for Nigerian movie producers" class="wp-image-232056">
 </figure> 
</figure> 
<ul> 
 <li><strong>Accessibility</strong>: With increasing <a href="https://technext24.com/2024/01/31/ncc-teledensity-drops-to-109-97-2023/">internet penetration</a> and mobile device usage in Nigeria, more people have access to streaming services. According to <a href="https://www.statista.com/statistics/183849/internet-users-nigeria/#:~:text=As%20of%202022%2C%20Nigeria%20had,reach%2048%20percent%20in%202027." target="_blank" rel="noopener">Statista</a>, internet penetration in Nigeria is projected to reach 117 million by 2027.</li> 
</ul> 
<p><strong>N.B: Netflix Nigeria has only 169,600 paid subscribers according to November 2023 data.&nbsp;</strong></p> 
<h6 id="cinema" class="wp-block-heading">Cinema:</h6> 
<ul> 
 <li><strong>Limited reach</strong>: The number of cinema screens in Nigeria is limited. In 2022, there were a total of <a href="https://leadership.ng/nigerian-filmmakers-cinemas-and-technological-impact/#:~:text=Cinema%20Box%20Office%20Revenues&amp;text=In%202022%2C%20there%20were%20a,of%20over%20200%20million%20people." target="_blank" rel="noopener">81 movie theatres and 300 screens in Nigeria</a>. Most of them were situated in Lagos. This restricts the audience size compared to the global reach of Netflix.</li> 
</ul> 
<ul> 
 <li><strong>Audience demographics</strong>: Cinemas primarily attract urban dwellers with higher disposable incomes, limiting access to a broader audience. There are no cinemas in the rural parts of Nigeria.&nbsp;</li> 
</ul> 
<h5 id="2-revenue-potential" class="wp-block-heading">2. Revenue potential</h5> 
<h6 id="netflix-2" class="wp-block-heading">Netflix:</h6> 
<ul> 
 <li><strong>Upfront payment</strong>: Netflix often buys the distribution rights of movies for a lump sum, providing immediate revenue for producers. <a href="https://saharareporters.com/2021/08/14/nigerian-filmmakers-react-netflix-offers-90000-nollywood-500million-asian-european-films#:~:text=Netflix%20offers%20compensation%20that%20it,the%2Drecord%20conversations%20with%20producers." target="_blank" rel="noopener">Reports</a> indicate that Netflix pays between $10,000 to $100,000 for Nollywood films, depending on the production quality and potential appeal.</li> 
</ul> 
<ul> 
 <li><strong>Residual earnings</strong>: Depending on the agreement, producers might earn additional revenue based on viewership metrics.</li> 
</ul> 
<h6 id="cinema-2" class="wp-block-heading">Cinema:</h6> 
<ul> 
 <li><strong>Box Office earnings</strong>: Successful cinema releases can generate substantial revenue. For instance, “A Tribe Called Judah”, distributed by FilmOne, recorded over ₦1.4 billion in February 2024, having spent 11 weeks at the cinemas. </li> 
</ul> 
<p>For clarity, <a href="https://businessday.ng/life-arts/article/nigerian-cinemas-record-revenue-boom-amid-turnout-dip/" target="_blank" rel="noopener">Nollywood experienced</a> a 46% year-on-year increase in box office revenue for Q1 2024 according to a report by Filmone. This growth translates to ₦2.25 billion in total revenue, including spillovers.&nbsp;</p> 
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  <img loading="lazy" decoding="async" src="https://technext24.com/wp-content/uploads/2024/05/image-29.png" alt="&quot;A Tribe called Judah&quot; " class="wp-image-232059" width="704" height="429">
 </figure>
</div> 
<p>Nollywood movies continue to dominate the Nigerian box office. Local productions held 56% market share during Q1 2024, while Hollywood productions held 44%. According to a report, the total number of people admitted to the cinemas in the first quarter of this year was 596,609, while the same period in 2023 witnessed 620,477 attendance.</p> 
<ul> 
 <li><strong>Long tail revenue</strong>: Beyond initial box office earnings, films can generate additional revenue through television rights, and secondary streaming rights.</li> 
</ul> 
<h5 id="3-costs-and-risks" class="wp-block-heading">3. Costs and risks</h5> 
<h6 id="netflix-3" class="wp-block-heading">Netflix:</h6> 
<ul> 
 <li><strong>Lower marketing costs</strong>: Marketing for Netflix releases is often supported by the platform itself, reducing the burden on producers.</li> 
 <li><strong>Production support</strong>: Netflix sometimes offers production support (as with the <a href="https://www.hollywoodreporter.com/tv/tv-news/netflix-inks-multi-title-deal-nigerian-producer-mo-abudu-1298151/" target="_blank" rel="noopener">deal with Mo Abudu</a> in 2020 and <a href="https://deadline.com/2021/03/netflix-partners-nigerian-filmmaker-kunle-afolayan-3-features-1234711156/" target="_blank" rel="noopener">Kunle Afolayan in 2021</a>), including <a href="https://technext24.com/2023/04/19/netflix-contributes-23-6m-to-nollywood/">funding</a>, equipment, and expertise, which can help reduce overall production costs.</li> 
 <li><strong>Lower risk</strong>: The upfront payment model mitigates financial risk, providing financial stability to producers.</li> 
</ul> 
<h6 id="cinema-3" class="wp-block-heading">Cinema:</h6> 
<ul> 
 <li> <strong>High marketing costs</strong>: Successful cinema releases require substantial investment in marketing and promotion to attract audiences.</li> 
 <li><strong>Distribution challenges</strong>: The logistics of distributing films to cinemas across Nigeria can be costly and complex.</li> 
 <li><strong>Higher risk</strong>: Box office performance is uncertain, and producers bear the financial risk if the film does not perform well.</li> 
</ul> 
<h5 id="4-impact-on-brand-and-career" class="wp-block-heading">4. Impact on Brand and Career</h5> 
<h6 id="netflix-4" class="wp-block-heading">Netflix:</h6> 
<ul> 
 <li><strong>Global exposure</strong>: A Netflix release can significantly boost a producer’s profile internationally, opening doors to further opportunities in the global film market.</li> 
</ul> 
<p>For instance, actress <a href="https://www.facebook.com/watch/?v=297328114400684" target="_blank" rel="noopener">Genevieve Nnaji was interviewed by CNN’s Richard Quest</a> after her first movie, “Lionheart”, as a director was bought by Netflix, making it the very first original Nigerian movie to be acquired by the movie-sharing platform.&nbsp;</p> 
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  <img loading="lazy" decoding="async" width="1600" height="899" src="https://technext24.com/wp-content/uploads/2024/05/image-30.png" alt="&quot;Lionheart&quot; - Netflix vs. Cinema: The best platform for Nigerian movie producers" class="wp-image-232061">
 </figure>
</div> 
<p>“Lionheart” was also nominated for an Oscar – even though it was later <a href="https://www.nbcnews.com/think/opinion/oscars-disqualified-lionheart-because-nigerians-speak-english-it-just-nigeria-ncna1078386" target="_blank" rel="noopener">disqualified</a>.&nbsp;</p> 
<ul> 
 <li><strong>Quality perception</strong>: Films on Netflix are often perceived as high-quality, which can enhance the reputation of producers and actors.</li> 
</ul> 
<h6 id="cinema-4" class="wp-block-heading">Cinema:</h6> 
<ul> 
 <li><strong>Local fame</strong>: Successful cinema releases can lead to strong brand recognition and loyalty within Nigeria.</li> 
</ul> 
<ul> 
 <li><strong>Cultural impact</strong>: Cinemas offer a unique and communal viewing experience that can significantly enhance the cultural impact of movies.<br><br>This communal dimension is deeply rooted in the tradition of storytelling and social gatherings, which are integral to the Nigerian culture. When audiences gather in a cinema to watch a film, the shared experience creates a collective memory and a sense of community that streaming platforms struggle to replicate.</li> 
</ul> 
<h5 id="putting-it-all-together" class="wp-block-heading">Putting it all together</h5> 
<p>Imagine a film like “King of Boys: The Return of the King,” a high-octane political thriller, finding a global audience on Netflix. Millions globally are captivated by the story of a powerful businesswoman navigating the treacherous waters of Nigerian politics.&nbsp;</p> 
<p>Streaming platforms offer this unparalleled reach, allowing Nollywood films to transcend geographical and linguistic barriers.</p> 
<div class="wp-block-image"> 
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  <img loading="lazy" decoding="async" width="512" height="288" src="https://technext24.com/wp-content/uploads/2024/05/image-31.png" alt="&quot;King of Boys: The Return of the King&quot;" class="wp-image-232062">
 </figure>
</div> 
<p>Data-driven insights from these platforms can also inform future productions, ensuring content resonates with a wider audience. Also, streaming services might offer higher upfront payments, particularly for films with broad appeal.</p> 
<p>However, Nollywood’s magic isn’t just about the films themselves. It’s about the communal experience. Picture a packed Lagos cinema erupting in laughter during a scene from a hilarious “Aki and Pawpaw” comedy. The shared experience in a cinema amplifies the film’s impact, fostering a sense of community and cultural identity.</p> 
<p>This is particularly true for films that address social issues, sparking conversations and potentially leading to social change.&nbsp; Theatrical releases also generate significant buzz, with local media outlets buzzing with reviews and interviews, drawing even larger audiences.</p> 
<p>Ultimately, the best choice depends on the specific goals and resources of the producer. A historical drama with strong local appeal might benefit more from a theatrical release to capitalise on the cultural impact and box office potential.</p> 
<p>A genre-bending sci-fi film, for instance, with international themes could leverage streaming platforms to find a global audience.</p> 
<p>The most successful strategy might lie in a hybrid approach.</p> 
<p>Imagine a film like “The Wedding Party 2,” a hugely popular romantic comedy, premiering in Nigerian cinemas with a red-carpet gala and generating national excitement. After a successful theatrical run, the film could then be released on Netflix, allowing fans around the world to experience the joy and cultural touchstones embedded in the story.</p> 
<p>This maximises both revenue and exposure, fostering a dedicated local fanbase while capitalising on the global reach of streaming services.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
  <img loading="lazy" decoding="async" width="1199" height="678" src="https://technext24.com/wp-content/uploads/2024/05/image-32.png" alt="&quot;The Wedding Party 2,&quot;" class="wp-image-232063">
 </figure>
</div> 
<p>A typical example is “Áfàméfùnà: An Nwa Boi Story”, released to the cinemas on December 1, 2023, recorded over ₦53 million one month after, and was posted on Netflix on March 29, 2024, where it has recorded amazing success.&nbsp;</p> 
<h5 id="the-future-is-bright-but-on-what-platform" class="wp-block-heading">The future is bright. But, on what platform?&nbsp;</h5> 
<p>Nollywood’s future is bright, and the choices producers make regarding distribution platforms will play a significant role in shaping its trajectory.</p> 
<p>By understanding the strengths and weaknesses of both streaming and cinemas, Nollywood filmmakers can craft a distribution strategy that maximises their reach, cultural impact, and financial success.</p> 
<p>The future of Nollywood will likely be a blended story, one where global audiences discover the magic of Nigerian cinema alongside enthusiastic local fans, all thanks to a strategic approach to distribution.</p>

Netflix vs. Cinema: Analysing Nollywood’s best bet for distribution and profit

Technext.ng

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