Confidential: Strategy & Business Development Group Confidential 1 Presented By John Ugbe MD, MultiChoice Nigeria Digital Broadcasting Africa Forum 2016 Local Content Creation for Africa 11.05.2016
Confidential: Strategy & Business Development Group Confidential 1
Presented By
John Ugbe MD, MultiChoice Nigeria
Digital Broadcasting Africa Forum 2016 Local Content Creation for Africa
11.05.2016
Confidential 2
Local content creation in Africa undergoing an aggressive growth spurt
Nigerian film industry is the most vibrant in terms of volume, contributing
an equivalent of N9 trillion ($45m) total earnings as part of the
entertainment industry
GDP contribution at 2.5% from rebased 1.4%
It also has the greatest potential for growth in Africa
Churns out about 200 movies monthly
2nd largest employer of labour, providing 1m jobs with capacity to provide 2m
jobs and more
South African film industry contributes approximately R3.5bn ($230m) to
the country’s GDP according to government’s figures
Has created more than 35,000 jobs
Immense growth from 4,000 in 1995 Travers
Overview
Confidential 3
To preserve our culture
Show the richness of our culture
Yoruba, Hausa and Igbo for now
Tell our own stories
Locally and internationally
Creates an opportunity to earn forex
To create jobs and develop the economy
To change perceptions about Nigeria & Africa as a whole
To improve the art of film making using modern technology
Movie remakes…
Why Develop Local Content?
Martin Scorsese could not have put it better when he said – “I have a desire to tell stories. And I am never quite satisfied.”
Confidential 4
Remember, everyone starts small…long term investments need time to grow.
You must have a story to tell
Select a story
Write the screen play/script
You have to plan
Hire your cast and crew
Select your location and build your set
Produce the film
The film is shot
Editing
Images and sound are edited
Visual effects are included
Distribution
The film is released into cinemas, then BoxOffice, DVDs, Pay TV and then terrestrial television
How to Develop Content
Confidential 5
Challenges
Piracy
Stifles creativity
Funding
Dearth of quality content
Switchover will create multiple channels – risk of monotony
Dearth of skills
Our artistes are imbued with the natural skills to excel
however…
Infrastructure
Inadequate resources; studios and production facilities
Finding an audience
Quality of work
Channels for exposure (sure to grow with the migration)
Distribution
Confidential 6
Government
Funds and Grants – increase supply and reduce costs
Subsidies
Tax credits
Infrastructure – Cowork and impact on the programmers
Private sector
Bank loans
Sponsorships – Branded content etc.
Commissioning
What have we done
Market creation
Platform to showcase internationally
Funding through commissioning and buying
Capacity building through workshops and own productions
Fighting piracy
Possible solutions
Confidential 7
South Africa
The incentive for local moviemakers offers a 35% rebate for the first R6m (about
$662 000) spent, and 25% for the remainder of production expenditure.
A 22.5% to 25% reduction if filming and post-production takes place in South
Africa. Post-production expenditure must be R1.5m (about $166 000) or above to
qualify
Great Case Studies!
Nigeria
The Nigerian government gave a $200m grant to the entertainment industry in
2010
Canada
5 Funds for the Media and Entertainment industries - $1.6bn
- The CFFF – about 49% equity or 49% recoupable advance in a
feature film
Tax credits – 25% of Labour and up to 15% of total costs
Confidential 8
Benefits of digital migration…
Viewers
Increased capacity – more channels
Better picture and sound quality
Extended signal coverage area – more people across the
country can view the same television programmes e.g.
Wazobia TV
Broadcasters
Opportunity to offer new services and generate more revenue
Regulators
Digital dividends
Why does Digital Migration Matter?
Confidential 9
…in terms of readiness
Government
To subsidize set top boxes
Switch on has occurred in Jos
Switch over deadline; June 2017
MultiChoice
DStv - digital from inception
Indigenous language channels – The AfricaMagic channels
GOtv - set up in 2011 as a mass market product that will assist in meeting the digitization
deadline
GOtv is digital!
GOtv currently has footprints in 24 states of the federation
Digital Migration: How Ready are We?
Preparation is half the job done
We can learn a lot from the Kenya and Tanzania migrations