How do film, TV production companies make money… or don’t they? | TheCable

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OPINION BY SAM ONYEMELUKWE: How do film, TV production companies make money… or don’t they? | TheCable

movie stars and producers, one would instantly think that money overflows in the film space. But how does the money flow into this industry? Or is it all a hoax?

In Africa, the Nigerian film industry is the largest in volume, the number of films produced annually, revenue, and popularity. The African production and distribution industry makes about $5 billion in revenue, and employs 5 million people. This figure is a meagre percentage of the global revenue, evidence that the film and video content industry in Africa doesn’t have the same economic stronghold as the North American film industry.

This in no way changes the position the cinema has as the traditional content window for movies. Film production companies still make most of their profit from the opening weekend of a movie. However, not all movies go through this route. Some are released through different mediums simultaneously, and others are released directly to video without theatrical releases.

The streaming giant’s arrival in the African video content scene has increased the switch by many content producers to VOD away from traditional cinemas. There are also local VOD operators like ShowMax and Iroko TV. These companies are promoting African content and are taking the Nigerian filmmaking and content production companies to a new level. Despite these achievements and progress, Nigerian and African companies continue to struggle.

 

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