Global Courant 2023-04-18 19:00:19
Nigeria’s cinema sales are struggling to bring home the bacon. According to reports, Nigerian cinemas recorded N441 million in ticket sales in March. The total admission of viewers to movie theaters across the federation for the reporting period was 174.07. According to reports from tth Cinema Exhibitors Association of Nigeria, recorded sales in March are an improvement on N278 million sales in February, which operators blamed on the cash crunch, general election and poor delivery of network services experienced by POS operators across the country were experienced for the decline in sales. However, this is only partly true.
The Nigerian film industry is one of the largest in the world. The industry has produced several award-winning films and is home to many talented filmmakers and actors. The entertainment industry is also a crucial sector of the economy, employing some 300,000 people directly and another 1 million people indirectly. As of 2019, the industry has generated $1 billion in annual revenue. Nigerian cinema has been an essential part of the film industry. In 2017, Ebonylife’s the wedding party’ grossed over 400 million Naira ($1 million) in local cinemas.
However, in recent times, the cinema industry in Nigeria has struggled to stay afloat due to various factors including piracy, poor infrastructure and the rise of streaming platforms. According to the International Intellectual Property Alliance, Nigeria loses more than $3 billion annually to piracy. The top streaming platform, Netflix, registered a 60% increase in the last four years since it launched in Africa. However, many Nigerians would still buy pirated copies of movies or turn to streaming platforms instead of patronizing cinemas. According to the National Film and Video Censors Board NVFCB, only less than 20 percent of Nigerians actually go to the cinema.
The effect of the COVID-19 pandemic on the film industry also continues. The pandemic not only led to the closure of cinemas, but also after the pandemic, cinema attendance has decreased significantly. From 2019 to 2022, the Cinema Exhibitors Association of Nigeria recorded a reduction of 28.7% year-over-year. In January 2019, cinema sales generated N286.9 million, then it peaked in January 2020, generating N333.9 million, and in 2021, the cinema generated N329 million in revenue. In recent years, movie theater sales have continued to rise and fall – only peaking during holiday periods or major releases or when blockbuster movies are shown during the holiday season.
Looking at the reasons why the cinema fluctuates between different figures, we can consider the economic condition of the country. According to the CEAN chief, Mr. Opeyemi Ajayi, a major reason why sales fell in February 2023 was due to the national cash crisis. In times of economic crisis, people often abandon their wants and focus on their needs. This means they leave out things they deem non-essential so they can wait for a wider release that will be cheaper. For example, the March report stated that due to the cash crisis and the poor delivery of network services in February, customers were unable to purchase cinema tickets.
Nigeria is a cash dependent country. Cash is used for most transactions. It’s no surprise that for many people, when they ran out of cash during the money crunch, going to the movies was the last thing on their minds. Movie buff Genevieve says she was too busy looking for money to meet her daily needs to bother going to the movies. “During the cash crisis, cash was limited, usually no more than 5,000 naira in cash. And when I got it, I had to think about food and transportation first,” she said. “It would have been unwise to go to a 2 hour movie, I may or may not enjoy it, and it would probably cost me more than 5k including transport and cinema snacks.” It helped her that if she needed entertainment or distraction, she could always watch a movie from her Netflix subscription.
Cinema sales in March highlight even more challenges for the cinema sector. According to the United Nations Educational, Scientific and Cultural Organization, by the end of 2021, Nollywood, the second largest film industry in the world, will have only 251 screens. However, there is still hope for the future of cinema sales in Nigeria. There is a growing demand for Nigerian films locally and internationally, providing an opportunity for the industry to reach a wider audience and generate more revenue. Investments and support aimed at the growth and development of the creative industries will ensure that the industry continues to grow and compete with other established film industries worldwide.
