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8
th
populous country in the world
As part oI the Nigerian media and entertainment industry, Nollywood has achieved tremendous
success in Nigeria, in Sub-Saharan AIrica, and around the globe. This $250 million industry has
grown to be the third largest gross-producing Iilm industry in the world, and is the second largest
output-producing industry in terms oI annual Iilm releases. Its success has attracted the interest
oI Ioreign Iilmmakers and has been the subject oI a Iew notable documentaries: This is
Nollywood, Welcome to Nollywood and Good Copy Bag Copy.
Nollywood diIIers Irom Hollywood and Bollywood in terms oI Iilm distribution. Nollywood
movies are released directly to the consumer public via DVDs or VCDs, without considerable
red carpet aIIairs and box oIIice releases as is seen in the Iilm industry oI its American and
Indian competitors The discs are aIIordable, selling Ior as little as $2. Surprisingly, this model
can be extremely proIitable, as production costs are on average merely $20,000. On account oI
this grass root distribution model, Nollywood movies are available in the rural areas oI Nigeria,
inIiltrating every household.
The United Nations Educational, ScientiIic, and Cultural Organization (UNESCO) reported that
Nollywood is Nigeria`s second largest employer, second only to the government, and calls Ior
greater support to nurture the industry. It is estimated that Nollywood contains over 200,000
actors, producers, distributers and promoters.|vii| It additionally creates, at any given time,
roughly one million residual jobs in related retail markets.|viii| These Iigures point to the
promising Iuture oI Nollywood, especially with the current global Iocus on the development oI
the creative industry.
Importance of Developing a Creative Economy
Bolstering the creative industry can serve as a driving Iorce Ior economic growth.|ix| In 2008,
the United Nations ConIerence on Trade and Development (UNCTAD) recognized the creative
industry to be a key contributor oI economic growth, employment and trade within developed
countries.|x| Creative industries have indeed emerged as one oI the world`s most dynamic
economic sectors. According to UNCTAD, international trade in creative goods and services
nearly doubled within a decade, Irom $234.8 million to $445.2 million between 1995 and
2005.|xi| UNCTAD urged developing nations to encourage development oI creative industries
within their communities, via policy-making and regulative oversight, as a grass root method to
improve their socio-economic conditions. By marrying technology, culture and business, the
creative industry holds a viable potential Ior developing countries to achieve economic
growth.|xii|
In 2005, UNCTAD reported that AIrica accounted Ior less than 1 oI world trade in the creative
industry, while in Europe the creative economy expanded at a rate that is 12 Iaster than their
overall economy.|xiii| The Nigerian government saw this as an untapped opportunity, and
embarked on a collaboration with the Nigerian Export Promotion Council (NECP), the World
Bank, the Nigerian Film and Video Censors Board (NFVCB), the Nigerian Film Corporation
(NFC), and the Nigerian Copyright Commission (NCC) to 'harness|| the Nigerian entertainment
industry Ior Iormal export to the global audience.|xiv| This partnership hopes to mirror the
success oI the European creative industries. Additionally, by creating a Iormal export industry,
the Nigerian government can gain a proIit Irom the dissemination oI Nollywood movies abroad
and use those proIits to improve other sectors oI the economy.
The writer, Ndidi, is a team member of Hofa Law Group, our moderator for the Intellectual
Property insight area.

|i| Cinema of Nigeria, en.wikipedia.org/wiki/CinemaoINigeria. Last visited Oct. 1, 2010.
|ii| This is Nollywood is a documentary Iilm by Franco Sacchi and Robert Caputo. This is
Nollywood, www.thisisnollywood.com. Last visited Oct. 1, 2010.
|iii| Welcome to Nollywood is a Jamie Meltzer Iilm about the Nigerian Iilm industry. Welcome
to Nollywood, welcolmetonollywood.com. Last visited Oct 1, 2010.
|iv| Good Copy Bad Copy is a Danish documentary Iilm about the current state oI copyright as it
relates to the Internet and peer-to-peer Iile sharing. en.wikipedia.org/wiki/CinemaoINigeria.
Last visited Oct. 1, 2010.
|v| Cinema of Nigeria, en.wikipedia.org/wiki/CinemaoINigeria. Last visited Oct. 1, 2010.
|vi| Cinema of Nigeria, en.wikipedia.org/wiki/CinemaoINigeria. Last visited Oct. 1, 2010.
|vii| Nigeria Export Promotion Council, Development of a Strategy for the Export of Nigerias
Professional Services. Diagnostic Report (2010), available at
http://nepc.gov.ng/Docs/Final20Diagnostic20Report20-
20ProIessional20Service20Exports20in20Nigeria.pdI . Last visited Oct. 2, 2010.
|viii| Nigeria Export Promotion Council, Development of a Strategy for the Export of Nigerias
Professional Services. Diagnostic Report (2010), available at
http://nepc.gov.ng/Docs/Final20Diagnostic20Report20-
20ProIessional20Service20Exports20in20Nigeria.pdI . Last visited Oct. 2, 2010.
|ix| Richard Florida, The Rise oI the Creative Class, Basic Books (2002).
|x| Nigeria Export Promotion Council, Development of a Strategy for the Export of Nigerias
Professional Services. Diagnostic Report (2010), available at
http://nepc.gov.ng/Docs/Final20Diagnostic20Report20-
20ProIessional20Service20Exports20in20Nigeria.pdI . Last visited Oct. 2, 2010.
|xi| Retrospective. Creative Industries Key Driver of Economic Growth, International Council oI
Societies oI Industrial Design, http://www.icsid.org/Ieature/current/articles702.htm. Last visited
Oct. 1, 2010.
|xii| UNCTAD deIines creative industries to include traditional Iolk art, cultural Iestivities,
literature, music, Iilm, paintings, television, radio and so on. Press Release, UNCTAD, Creative
Industries Emerge As Key Driver of Economic Growth with Trade Nearly Doubling in Decade
(Jan. 14, 2008), available at
http://www.unctad.org/Templates/webIlyer.asp?docid9467&intItemID1528&lang1. Last
visited Oct. 1, 2010.
|xiii| Retrospective. Creative Industries Key Driver of Economic Growth, International Council
oI Societies oI Industrial Design, http://www.icsid.org/Ieature/current/articles702.htm. Last
visited Oct. 1, 2010.
|xiv| Daniel Gumm, NEPC, World Bank Others Team Up to Export Nigerian Entertainment,
Vanguard (May 6, 2010), http://allaIrica.com/stories/201005061103.html. Last visited Oct. 1,
2010.
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Entertainment Industry in Nigeria





hLLp//wwwnal[apalscom/arLlcle/blog17832

Nigeria has a strong entertainment industry which has spread beyond its borders into the AIrican
region and AIrican diaspora markets in the UK and the US. The industry is comprised oI both
music and Iilm production. The Iilm industry alone is worth an estimated US$250 million a year
and the third largest Iilm industry in the world aIter Hollywood and Bollywood. Nollywood, as it
known, produces more Iilms per week (40) than Hollywood or Bollywood.
Most oI these are low budget productions with a short shelI-liIe due to high production levels
which turn out an average oI 6 Iilms per day.

The music industry produces an average oI 550 albums oI diIIerent types oI music annually.
Record sales have more than tripled in the past 5 years, averaging 10 million in 2005 and rising
to an estimated 30 million in 2008. There is revenue Irom musical shows and concerts held in
Nigeria. An estimated 1200 concerts and musical shows take place every year and account Ior a
combined annual turnover oI US$105.5 million.

The entertainment industry in Nigeria oIIers potential Ior growth and value addition Ior the
Nigerian economy. Although in the context oI GDP contribution, the sector is not large, there are
other Iactors to support its inclusion in the strategy plan. The popularity oI the industry makes it
worth exploring. However, it Iaces some challenges. The biggest oI these is piracy in both the
Iilm and music industries. Estimates indicate that Ior every single copy oI Iilm sold legitimately,
there are 5 to 10 copies sold by pirates. Other challenges include poor production standards and
poor marketing and distribution linkages. These challenges have discouraged Iinancial
investment in the industry. Although the quality oI production is poor, estimates oI the scale oI
consumption oI pirated copies throughout the region and the diaspora prove that there is a
volume oI sales that Nigeria could capture that is currently lost to piracy.

The International Music Marketplace
The recorded music industry has traditionally derived the majority oI its revenues through the
sales oI physical recordings. However, the rise oI digital music has resulted in substantial
changes to the industry`s structure as shown in the table below. Recording companies have
adapted their approach to respond to new trends in how music is distributed and consumed.
There is still a market Ior physical recordings such as albums, single sound recordings and music
videos. Digital distribution reIers to distribution oI music to mobile phones and music downloads
through the internet. There has been an increasing shiIt Irom CDs to music downloads. Global
digital music sales reached US$7.6 billion in 2008 and are projected to increase to US$14.8
billion in 20., an annual increase oI 14.2.

Local Capability and Competitiveness oI the Music Industry
Exports oI Music
Nigeria has Iashioned an AIrican Hip Hop style oI music which appeals to international
audiences. A number oI its musicians are internationally recognised and have received
international recognition through awards such as the MTV Europe Music Award, Channel O
Music awards and Kora Music awards. These awards have been received Ior various musical
talent categories as well as other areas such as best video and special eIIects.

In 2008, the industry had 30 million legal record sales with a value oI just over US$9.3 million4
while concerts and music shows generated an annual turnover oI US$105.5 million. Pirated
music sales are estimated at 10 million but the impact oI these sales in lost revenue to the
industry is diIIicult to estimate because no one knows the price at which pirated music is sold to
the regional and diaspora market. It is not certain how many people are employed in the music
industry because it is Iragmented and mostly inIormal.
Production houses Iall into two categories: proIessional studios and home studios. In the music
hub oI Lagos, 16 oI production studios are proIessional and 84 are home studios. There are
other players in the industry including music video production companies, record label/artiste
management companies and marketers but they tend to be small outIits and in the majority oI
cases, they are a one-person business.

Revenue received Irom concerts and musical shows is a clear indication oI the success oI the
music industry. There is potential Ior market growth and increased revenue Irom recorded music
based on the high number oI pirated music sales. Changes need to take place to bring together
the Iragmented industry into an eIIicient group and develop a strategy it can implement. The
World Bank`s Growth, Employment and Markets in States (GEMS) project which has been
created to enhance competitiveness, growth, employment and business opportunities in the music
industry.

Music Industry Constraints
A diagnosis oI the music industry in Nigeria has revealed a number oI constraints which are
outlined below.

Copyright and Piracy (Regulation and enIorcement)
Illegal sales oI music CDs are the greatest threat to the music industry in Nigeria. Part oI the
problem is that many music producers operate inIormally and thereIore their music is not
copyrighted. Estimates indicate the rate oI piracy towards the end oI 2008 was 585. The loss oI
revenue means musicians are not receiving all oI the monies that are due to them and production
houses are not able to recoup their costs. The entire value chain in the music industry is being
short-changed. As a result, there is little Iinancial investment going into the industry to improve
production quality and reduce production costs.


Nigeria has the associations and legal Irameworks Ior regulation and enIorcement oI intellectual
property rights. The Nigerian Copyrights Commission (NCC), the Nigerian Customs Service
(NCS) and the Standards Organisation oI Nigeria (SON) are crucial to Iighting piracy. However,
there is no cohesion in their approach to protection oI intellectual property and the application oI
legal Irameworks that exist. This is Iurther compounded by the Iact that the majority oI the music
industry is not registered and thereIore copyrights are diIIicult to recognize in the Iirst place.
There is also the element oI public awareness to consider. The public should be educated on
intellectual property rights as part oI the solution, though such eIIorts are unlikely to result in
much progress Ior some time.
Some countries have successIully centralised the royalty collection process through the use oI
copyright collection societies who collectively administer rights and Iacilitate access to
musicians` works. This reduces the insurmountable task oI individually enIorcing rights. This
would work better in Nigeria iI all music products had recognisable, authenticated marks or
holograms to help the public distinguish between pirated and legal copies. An authenticated
process Ior registering and protecting IPR would be the Iirst step towards this. The Nigerian
diaspora market is Ilooded with pirated copies which would be reduced iI Nigeria had a
reciprocity oI enIorcement arrangement with other countries. The World Bank GEMS project is
working with all stakeholders to create an enabling business environment to counter piracy.

Production

Music is usually produced in a one-person, home-based recording studios which Iorm the
majority oI production studios. They are not equipped to produce high quality music and are
expensive. They have the most basic equipment required Ior sound production and lack the
technical expertise required to produce music oI suIIicient high quality Ior the international
market. The high end oI the music production industry in Nigeria charges US$, per recording
session while the lower end charges US$65. The music video production industry is equally ill-
equipped and expensive. Musicians spend an average oI US$330 to produce one song. A music
video costs US$33,000 to record. There are Iew studios with state-oI-the-art or even modern
video equipment. Most Nigeria musicians who 11
can aIIord to preIer to shoot their music videos in South AIrica where there is modern video
editing equipment.
Production oI physical recordings is not able to meet demand. Consequently, music is not
released throughout the country at the same time. This creates a window Ior pirates to Ilood the
market with illegal copies. These are sold on within the country and also make their way to the
diaspora market in AIrica, Europe and the US. It is diIIicult to monitor CD sales in the existing
environment.

Distribution and Marketing

The distribution oI music in Nigeria is handled by marketers. They purchase the distribution
rights Ior music Irom individual musicians or Irom record labels/artiste management companies.
It is the marketers who then launch a marketing campaign. They replicate the master copy oI
music and distribute it through their networks to retailers. There is no way Ior musicians to know
how many copies are sold and who is involved in the value chain Iurther down the line once the
marketers have made a one-oII payment to buy the music. This makes it diIIicult Ior musicians
to claim royalties. Less established artists who do not have a record label or artiste management
company have no option except to sell their music rights to marketers Ior a one-oII payment. It
would be beneIicial to artists iI there was an overall promotion agency that works directly with
musicians to assist with both packaging, marketing and distribution oI their music abroad.


Training

The music industry lacks technical skills to produce high quality music and music videos. This
has prompted musicians who can aIIord it to travel abroad to access skilled music and video
producers and sound technicians.

The Opportunity in Music
The sheer volume oI pirated copies oI music being sold is a clear indication oI the opportunity
that exists Ior the music industry. The demand exists despite the poor quality oI the product and
the lack oI proper marketing and distribution channels. The talent required to make Nigeria`s
music industry a success already exists and is evidenced by regional and international awards Ior
some musicians. On its own, the recorded music industry achieved revenues oI US$9.3 million,
while concerts achieved revenues oI US$105.5 million.
The opportunities Ior the Nigerian music industry lie in the Iollowing areas:

Attracting tourists (mostly diaspora Nigerians visiting Iamily and Iriends) and music Ians Irom
outside Nigeria to local concerts.

Staging concerts outside Nigeria, in the region and Ior the diaspora markets in the UK and the
US. Staging concerts abroad should also create demand Ior recorded sales.









OPPORTUNITIES IN MEDIA AND ENTERTAINMENT IN NIGERIA
BACKGROUND
IBST is one oI Nigeria`s leading creators oI television, music and Iilm programming, new media
and entertainment products. IBST designs, creates, produces and distributes media, entertainment
and liIestyle products based on contemporary AIrican culture. It is structured as a Limited
Liability company with 100 Nigerian ownership, operating businesses in television, Iilm and
event production, interactive media services and broadcasting. IBST also provides consultancy
and implementation oI media technology projects and systems integration which have included
major projects such as the Broadcast Iacilities Ior the All AIrica Games and a recent
development oI educational studios in 6 Universities in Nigeria Ior the Interactive Learning
Network an initiative oI NEPAD and the Educational Trust Fund (ETF).
IBST`s mission is to be the deIinitive Nigerian media company creating breakthrough cross-
platIorm AIrican media content that entertains educates and inIorms; which delivers value to
contemporary Nigerian culture and liIestyle, enhances the quality oI media and content
experience oI Nigerians living within and outside the continent, and Iinally to tell our stories in
our own ways to the rest oI the World.
IBST`s business objective is to become a leading media and entertainment company in AIrica,
delivering compelling content to a global audience. This means we must always strategically be
aware oI the trends, opportunities and challenges that our industry presents in the Iace oI
economic variables.
GLOBAL TRENDS AND MARKET OPPORTUNITY
Globally, digital technologies and the Internet are transIorming the media, entertainment and
telecommunications industries. New entrants into the entertainment industry, Irom internet
companies like Facebook, Youtube, Google and Yahoo to established telecommunications giants
like AT&T, MTN, British Telecom and VIRGIN are competing with traditional broadcasters and
cable and satellite operators to deliver content to end consumers. These dynamics are creating a
new, global market Ior compelling music, TV, and Iilm content.
Developing countries are claiming increasing shares oI the global trade in entertainment
products, in addition to growing their domestic markets. For players interested in growth
prospects in entertainment and media on and Irom the AIrican continent, Nigeria is key to
conquering AIrica as it has the potential to be AIrica`s biggest entertainment market by value,
having AIrica`s largest population and strongly youth-skewed demographics. The recent
unmeasured success oI Nollywood movies and Nigerian urban music in spite oI poor structural
support Ior the entertainment industry, suggest that success, Irom an external demand standpoint,
is within reach as well.
Further, the growth oI pan-continental brands in AIrica in sectors as diverse as
telecommunications, banking and consumer products suggest that the continent will experience
an explosion, as other markets have, in the use oI media and entertainment in marketing to drive
product adoption.
This conIluence oI Iactors presents a unique opportunity Ior anyone who has the vision; ambition
and veracity so they can both leverage domestic demand and consolidate content creation and
marketing power to address the immense new international opportunities on the horizon.
Technology and the consumer choice it has engendered are pushing the demand Ior media and
entertainment products towards a single global market. As the success oI a single global
marketplace enabled by technology creates the Holy Grail Ior the entertainment industry one
platIorm Ior all products Ior all the consumers in the world. For the time-being, demand Ior TV,
Iilm and music content is being driven by new, well-Iinanced competitors to broadcast, satellite
and cable operators Iixed and mobile telecommunication operators and the major internet
media aggregators.
MARKET SIZE AND GROWTH PROSPECTS
Developing countries account Ior an increasing share oI global exports in cultural goods Irom
$4.2 billion and 11.2 in 1994 to $11.6 billion and 21.2 by 2002. This growth was particularly
pronounced Ior audio-visual media, where developing countries` share rose to 44.6 in 2002
Irom 27.6 in 1994. In 2008 developing countries accounted Ior more than $17.8 billion in
exports oI cultural goods an increase oI more than 50
China (including Hong Kong) and India, who account Ior a large share oI this trade, are also
experiencing booms in their domestic entertainment and media markets. The Chinese music
market is growing at 30 a year, while the Indian entertainment market is growing at 20
annually, led by television broadcasting.
The Nigerian marketplace oIIers similarly compelling growth prospects.
Apart Irom its strong demand base, Nigeria generates Iilm, music and entertainment content that
is popular across the continent and in Europe and the Americas. For instance, between 500 and
1,000 new titles oI Nigerian Iilms enter Kenya every year. These Iilms account Ior about 60 oI
the total Iilms traded in Kenya per year, which is put at between $3 million and $6 million.
However, the country`s entertainment and media businesses are Iragmented and poorly
organized and Iinanced, unable to stimulate and meet domestic, much less continental or
international, demand.
Key constraints to the sector`s growth and development include Iinancing, domestic and
international distribution, and the dearth oI technical and creative training, As a result, most
players in the Nigerian entertainment and media have thereIore stayed at the artisan level, unable
to muster the depth and breadth necessary to capitalize on continental and global opportunities.
This conIluence oI Iactors presents a unique opportunity to leverage domestic demand and
consolidate content creation and marketing power to address the immense new international
opportunities on the horizon.
Today I am going to touch on the Iollowing areas:
Skill Set
Music
Television and Film
Content, New Media & Technology
Lets look at some oI these opportunities:
SKILLS SET
The Media and Entertainment industry is Iull oI people with potentials, however the major
setback is the unavailability oI appropriate skillset. By this I allude to the inability to perIorm
and carry out the most basic Iunctions and roles within a set environment or project.
The need in the media and entertainment industry Ior well-trained proIessionals cannot be over-
emphasized. As the industry proIessionalizes, demands higher standards oI delivery and
creativity, the gaps to be Iilled will become greater creating opportunities Ior people who invest
in proper training, apprenticeships and understudying the requirements oI delivering high quality
creativity, sustained perIormance and reliability.
From scriptwriters and directors, to talent managers and artiste agents; Irom graphic designers to
studio managers, animators and content developers, as we evolve the industry and resource Ior
the best talent who understand their work processes, it will be important that everyone comes to
the table with skills that have been well developed.
In summary the entry barriers into the industry whatever the sector is getting higher, and at the
top oI the pyramid unless you are competent the opportunities will elude. So the Iirst and most
important things is to get the appropriate skills you need to work in the industry oI your choice.
MUSIC
The business oI Music is one, which I understand but have not taken time to study in depth, even
though at some time in the past I have been involved Irom a distance in the management oI a
prominent record label in Nigeria. In my early days I also worked in London at CBS Records as
a New Release Coordinator, managing the distribution oI New Releases into the London Market,
so whilst you will excuse my not so in-depth knowledge oI the industry, I have been a close
observer Ior years having produced many music events and programmes.
The opportunities in the Music industry in Nigeria are enormous. Look at how the music industry
operates elsewhere in the world and the gap between where we are and where they are, and that
gap is the opportunity. Developing the music industry in Nigeria goes Iar beyond the huge
increase in the quality oI Music Videos, and the prominence oI some artistes in national
newspapers, presence on MTV Base, Channel O etc. It goes beyond the hype and should Iocus
on the need to build structures that are sustainable into the long term. Whilst the opportunities
are enormous, so are the challenges.
The need to build a viable distribution network Ior products and a business model that destroys
the pirates are imperative Ior sustainability. Regulatory and industry collaboration is important.
However, this model must also take into cognizance the era oI the digital platIorm (iTunes etc.)
and what this means to our industry in Nigeria. The opportunities that convergence provides and
eventual appearance oI broadband albeit slowly in Nigeria will change the Iace oI Music.
Music industry primarily derives revenue Irom sale oI recorded music in CD Iormat and digital
downloads. This revenue comes principally Irom purchases oI CDs by wholesale or retail
distributors and direct retailing by 'street teams. In addition, revenue can be derived through
licensing music Ior download on Internet-based distribution services such as the iTunes, which I
have mentioned beIore.
Revenue can also be earned Irom licensing music Ior ringtones and similar mobile applications,
which a lot oI companies and young Nigerian entrepreneurs are exploiting today through content
aggregation.
Revenues in the music industry can also be derived Irom sponsored concerts and special events
which as a rule are promoted and created as promotion vehicles by Iorward thinking
businessmen and women who have the vision to see opportunities and engage at a level where
they can take their plans Iorward.
One oI the advantages oI the music business is its contractual Ilexibility with regard to the timing
and amounts oI advances paid to existing recording artists, songwriters and musicians which
provide an expansive blanket Ior agents, managers, and a high level oI discretion regarding
anyone who wants to invest in new artists and songwriters, which Iurther allows the music
business to respond to changing industry conditions in a variable economy.
Here are some opportunity areas in the Music Industry:
Attract, Develop and Retain Established and Emerging Recording Artists and Songwriters.
Focus on Iinding, nurturing, developing and retaining recording artists, songwriters and
producers who can achieve long-term success. Seek to sign talented recording artists with strong
potential, whose releases will generate a meaningIul level oI sales and build an enduring value oI
cataloged music by continuing to generate sales on an ongoing basis. IdentiIy promising
songwriters and producers who will work in conjunction with you and your recording artists in
producing work that will increase the appeal oI your recorded music oIIering. Focus on nurturing
and developing songwriters and producers as a key competitive advantage to your business
thereby enabling your business to produce music signiIicantly better structured, perIormed and
recorded than that oIIered by direct competitors.
Set up a business that Capitalizes on Digital Distribution and Emerging Technologies. Digital
Iormats represent new avenues Ior the distribution, promotion and exploitation oI our recorded
music assets. Internet and wireless channels Ior the purchase oI music holds signiIicant promise
and opportunity. These distribution channels, such as the Apple iPod and iTunes service, are
eIIective means to reach a global market oI consumers. As networks and phone handsets become
more sophisticated, music will become increasingly available on mobile phone platIorms through
wireless service providers via ringtones, ringback tones, Iull track downloads and music video
downloads.
Provide an outlet Ior Products In The Continued Development And Formalization OI Nigeria
Physical Distribution Channel. The media distribution system in Nigeria is rudimentary and
oIIers signiIicant opportunity Ior improvement. Try to work with existing distribution partners
and new distribution ventures in Nigeria to improve the distribution system Ior its CDs and
DVDs and other media and make it a business.
Develop Distribution Relationships with Ex-Nigeria Distributors and enter into distribution
agreements with dominant media distributors in markets outside oI Nigeria. Act as their local
agent and distributor through concerts and promotional events- to capture and stimulate market
demand Ior your agency Music products.
Develop a University-Campus Based Promotion and Distribution Network as a signiIicant part
oI a distribution and promotion strategy Ior Music. Develop a network oI student-representatives
on University and polytechnic campuses to serve as promoters, distributors and general
cheerleaders Ior Music and artists.
TELEVISION AND FILM
The core oI the businesses I have been involved in Ior more than 20 years is Iilmed
entertainment, which engages in television and Ieature Iilm production and distribution although
I must admit my company has been more prominent in the area oI the TV production and
Facility development
Television production business creates scripted and non-scripted television programming.
Scripted programmes are programmes such as drama, comedy and soap operas Ior which writers
pre-determine the script and structure. Non-scripted programmes comprise reality TV
entertainment, game shows and talent shows in which the main events within the programme are
not pre-determined by writers and producers but are the result oI actual events occurring during
the show.
Generally, a television, satellite or cable network will license a speciIied number oI episodes oI a
show Ior exhibition on their network during the license period. In Nigeria this does not happen
because all broadcasters do is retail airtime. So producers in Nigeria must be conversant not only
with communication, advertising and marketing strategies, they must also be creative and able to
translate marketing goals oI the sponsors to creative programming and Iormats that delivers their
marketing objectives. All other distribution rights, including international and oII-network
syndication rights, are typically retained by the production company, or iI sponsored retained and
exercised by the sponsoring Company.
Production companies can also enter joint-venture arrangements with international production
companies such as Endemol, Sony Pictures, Marc Burnett Productions to mention a Iew Ior joint
production oI television programming Ior the Nigeria and AIrican market. Pursuant to the terms
oI the joint venture agreements, the joint ventures are the exclusive vehicle through which either
party may produce television programmes Ior the Nigeria market. The joint venture normally
provide Ior split oI all proIits.
Production companies also produce Ieature Iilms and made-Ior-television movies both
independently and under co-Iinancing arrangements with others. Or, also acquires rights in, and
distributes, completed Iilms produced and Iinanced by others.
Revenue derives generally Irom licensing Iilmed entertainment product to broadcasters, sponsors
and other aggregators. In addition revenue can be earned Irom purchases oI DVDs oI Iilmed
entertainment by wholesale or retail distributors and direct retailing by the production company
through television direct marketing, its website, 'street teams and at promotional events.
Incremental revenue can also be derived through licensing and merchandising arrangements.
These licensing and merchandising arrangements enable the Company to exploits its Iilm and
television properties and characters by entering into licensing agreements Ior merchandising,
literary publishing, wireless, games, themed entertainment and promotional and advertising tie-
ins.
Here are the opportunities areas in the industry:
There is a dearth oI skilled personnel in all areas oI Film and TV production in Nigeria with the
requisite education, practices and knowledge oI processes. II you have the required skills and
knowledge in the Iollowing areas you will not be short oI opportunities. However, you must
develop those skills to a high level to gain entry into an industry that even today in Nigeria is
paying very good income to proIessionals.
Directors, Producers, scriptwriters, Production Managers, Directors oI Photography, Art
Directors, Production Designers, Animators, Graphic Artistes and Editors etc. at the top end oI
their game in Nigeria today are constantly working and can take home as much as N750, 000 per
month on projects. My advice is get trained, build up your skills and gain experience. Whatever
role or proIession you desire within the industry is up to you. It`s an open space waiting to be
Iilled.
CONTENT, NEW MEDIA & TECHNOLOGY
The challenges Iacing the media and entertainment industry in Nigeria today are numerous, but
what is emerging is a strong base upon which to build and grow the exciting possibilities oI the
Iuture.
One oI the key Iactors in Nigeria is that Household usage and adoption oI
communications services will accelerate as more people are provided access
to the mobile phone, Internet and aIIordable cable services. Mobile phone
usage will increase and in a country where the 70 oI the population is below 30, the number oI
connections to make low-cost calls, SMS and access
downloadable content on the phone will start to make major in roads to
traditional content platIorms.
In many sectors, increased usage or signing up Ior new or more advanced
services would inevitably lead to increased costs to the consumer. However,
in the communications sector, a combination oI new technology, intense
competition between providers and regulatory intervention, where required, will lead to
signiIicant reductions in retail prices.
Consumer choice and convenience make the consumer the king. They are
completely in charge these days concerning what they watch and where they watch it. For these
very reasons the media who spend most oI their lives producing content need to be excited at the
prospects and study the trends oI the industry, what is happening and where it is going.
Not only do we need to now start developing new models Ior our business, we need to start
understanding even more what the consumer wants, and where he wants to get it. This obviously
is not as easy as it sounds. Walking the talk can be expensive, moreso when we look at changing
technology and the requirements oI producing multi Iormatted content. There are many issues to
be resolved such as multicasting, the role oI the Internet, compensation Ior content, protection oI
intellectual property and so many other parameters.
However, playing a deIensive game will leave you behind. Attack is the best
Iorm oI deIense and our Iuture successes in media and entertainment will depend on our creative
skills and abilities to exploit every opportunity and technology on every platIorm available Irom
Satellite and cable to mobile and gaming.
One oI the most interesting trends is the striking evidence that our very young and growing
networked generation` is turning away Irom television, radio and newspapers in Iavour oI online
services, including downloadable content used on multiple devices such as iPods and mobile
phones and
participation in online communities such as Iacebook and youtube etc.
Despite the power oI television to a largely rural audience, the evidence is that Television is oI
declining interest to many 16-24 year olds in the urban areas; OI the television they do watch, an
even smaller proportion oI their time is spent viewing public service broadcasting channels.
Instead, the Internet plays a central role in daily liIe.
The same group also uses mobile phones extensively, on average making
more calls and sending more texts per week than the wider Nigerian
population. Extensive use oI the Internet also continues to inIluence 15-24 year olds`
consumption oI other media. Their radio listening is getting lower compared to the wider
population; additionally they read newspapers less as a consequence oI their online usage.
No matter the channel or medium though it is no longer debatable that content is not King,
connectivity is King, the ability to socialize with each other, share content peer to peer and grow
a network oI Iriends who they can share content with is the compelling driver.
Key considerations as we propel ourselves on this journey will
include distribution. The ability to provide and distribute content on multi
channel platIorms will be signiIicant as Nigerian Producers and broadcasters
get ahead oI the game and source Ior the signiIicant revenue streams
available. A key Iactor is that content produced here would have to meet
international production standards and be available everywhere and on any
type oI device. We need to incorporate and work with Telco`s, broadcasters, content aggregators
and media distribution agents. Our Iuture is all about distributing signals to every device
available and producing the content that Iits the device.
We must start to look closer at new devices and what they mean to our
business model and revenue prospects. New devices are potentially users oI
the content TV producers provide, and new stream oI programmes are
potential revenue streams. Planning ahead is key, and staying abreast oI
technology led solutions even more important because really we need to
provide content on every new device, even those waiting to be created.
There are other issues oI course, which we all know, Copyright, business
models, technology adaptations and revenue channels, however what is most important is how
we adapt to the changes and embrace the Iuture.
Lets look at some important pointers. In a recent Media report published by
MediaReach Limited, Lagos, I have been able to establish Irom this report
and their previous reports over the past three years the Iollowing:
In an important change in habits, viewers in Free-to-air households now
spend more time watching privately owned TV channels than any one oI the
state or Federal Government owned channels.
Advertising and Sponsorship revenue remains the largest source oI Iunding
Ior television channels in Nigeria with revenues up by 18 on previous years
Ior some stations. Overall, television industry revenues increased by 21
Irom last year based mostly on increase spend Irom the Telco and Financial
sector oI the economy.
Regarding online and new media services, the oIIice oI Communication
(OFCOM) reports and I quote 'Online advertising continues to grow in
importance as a mass marketing medium, attracting signiIicant revenues
away Irom other media. These trends are likely to continue as new technology and new products
expand choice and availability.
With Mobile phones playing an increasingly important role in consumers` daily lives. Many
households now have a mobile phone as a landline phone; and Ior the Iirst time, the proportion oI
households relying on mobile phones exclusively is signiIicant enough to start looking at
emerging opportunities in this realm.
Mobiles are becoming the preIerred means oI making calls in many
households. Greater competition, Ialling prices and the erosion oI traditional revenues and
audiences are transIorming the sector. A new generation oI consumers is emerging Ior whom
online is the lead medium and convergence is instinctive.
For broadcasters the challenges are even more daunting, iI they hope to be in business many
years Irom now they must start to chart a new course and
develop business models that guarantees viewers and advertisers value.
Their scheduling and programming must oIIer compelling content, and they
must start to understand that they must open up revenue sharing options with partners and
producers as they build enduring brands that have resonance in the market place.
Broadcasters must be able to take advantage oI the digital platIorm and the
great opportunities it oIIers. II they cannot show consumers the exciting
possibilities how on earth will advertisers and sponsors get on board the
plane! Many Nigerians today even those in the industry do not even have
any iota oI an idea what the digital realm oIIers. Their minds are numb; they don`t even know
where to start.
As Media and Entertainment proIessionals it is our responsibility to start providing some oI these
answers to consumers, advertisers and proIessionals alike, as a means oI protecting and growing
our investments. We must
start to show consumers and viewers that the exciting possibilities are
within our grasp. That we have a plan to move Irom where we are today and build an enduring
media and entertainment sector that truly provides great entertainment, Iirst class inIormation
and an enduring platIorm that has commercial viability through the provision oI compelling
content distributed to the many digital devices available today.
SUMMARY
Opportunities in Media and Entertainment are numerous. They will require that you understand
the developing trends, the market and business models and the roles that are available, and the
skills you will require to exploit these opportunities. More importantly you must be well
prepared and have the adequate skills to survive in every challenging environment where the
consumer dictates your viability, relevance and proIitability.
You must understand what the Iuture holds and position your selI in a manner that enables you to
be Iirst to market, or alternatively provide a unique and quality service or product. You must
engage at all levels and never stop thinking oI what`s coming next and be there ahead oI your
competition.
I wish you the best oI luck.