THE MEDIA MARKET IN NIGERIA

CM3237919@TV_WATCHINGNigeria

Market overview

I have spent some time to put this market survey together. Its not a very comprehensive document in a country where obtaining data is very difficult. Using reliable sources available, I have attempted to bridge some of the information gap, and provide some background to where we are heading and the metrics for an overview of the media industry in Nigeria.  Please do not regard this document as a holistic and accurate document, but rather a painting that provides some texture to the media market in Nigeria.

 MARKET OPPORTUNITY

Technology and the consumer choice it has engendered are pushing the demand for media and entertainment products towards a single global market. On the digital platform this is ever so apparent. From Mobile phones, Internet, broad band, satellite and 3 screen technology, the demand for instant, transmedia and media rich content is providing new opportunities and revenues for those who position themselves properly, as the success of a single global marketplace enabled by technology creates the Holy Grail for the entertainment industry – one platform for all products for all the consumers in the world. For the time being, demand for TV, film and music content is being driven by new, “Well-financed competitors to broadcast, satellite and cable operators – fixed and mobile telecommunication operators and the major media/content aggregators”.

Market – Size & Growth Prospects

Developing countries account for an increasing share of global exports in cultural goods – from $4.2 billion and 11.2% in 1994 to $11.6 billion and 21.2% by 2002. This growth was particularly pronounced for audio-visual media, where developing countries’ share rose to 44.6% in 2002 from 27.6% in 1994, and to more than 53.5% in 2009.

Growth in consumption of audio-visual media & content in developing countries

China (including Hong Kong) and India, who account for a large share of 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 and internet consumption of content.

The Nigerian marketplace offers similarly compelling growth prospects. For players interested in entertainment and media on and from the African continent, Nigeria is key to conquering Africa as it has Africa’s largest population and strongly youth-skewed Demographics. Nigeria has a population of approximately 160 Million with around 68% of the population between the ages of 15 and 25 years old; an economy anticipated to grow at a 6% or higher rate over the next decade and a growing

Consumer class that advertisers are eager to reach. The growth of pan-African brands is also driving the demand for content to complement marketing and advertising campaigns.

Apart from its strong demand base, Nigeria generates film, music and entertainment content that is popular across the continent and in Europe and the Americas. However, the country’s entertainment and media businesses are fragmented and poorly organized and financed, unable to stimulate and meet domestic, much less continental or international, demand. Key constraints to the sector’s growth and development include financing, domestic and international distribution, and the dearth of technical and creative training. As a result, most players in the Nigerian entertainment and media have stayed at the artisan level, unable to muster the depth and breadth necessary to capitalize on continental and global opportunities. This confluence of factors presents a unique opportunity for to leverage domestic demand and consolidate content creation and marketing power to address the immense new international opportunities on the horizon. It is this opportunity that Hypnotic Media intends to leverage upon and exploit for the benefit of its owners and shareholders.

SERVICES IN NIGERIA

There are 3 main vendors of DTT in Nigeria:

- Multichoice DSTV – Entrenched market leader that has been doing business in Nigeria for more than 20 years

- Star Times with N1.2m Subscribers – established 3 years ago

- Go TV with 298,900 Subscribers – established 2012

DSTV provides a Cable TV service across Nigeria via Satellite and presently claims to have less than 1m subscribers. However, it is commonly felt that due to lack of monitoring by Government, DSTV in Nigeria is declaring less than actual figures for tax purposes. The actual figures are thought to be in the region of more than 3 million.

There are more than 48 TV stations across Nigeria. The Government owned Network NTA is managed as a Public Broadcaster. However, NTA has been unable to provide any engaging content and is seen as the Government mouthpiece, and very unreliable. There are 2 other networks AIT and Silverbird but these are seen only in some regions and not across all the country. In total the viewership of DTH in Nigeria is in the region of 119 Million Nigerians.

OTT in its proper form does not exist in Nigeria. There is great interest in developing this medium and many companies presently providing Internet services are looking at these opportunities. Some have invested some monies prospecting, but no major launch of full OTT services have occurred in Nigeria in the past 5 years.

MMDS Broadcasting in Nigeria was also very popular, however many of the companies that were afforded licenses have in the past years folded up due to the advancement of better technology and inability to compete in the area of entertaining content, reliable distribution and reception modes.

Nigerian telecommunications company MTN and Multichoice Nigeria has also officially launched Mobile Television. The service using DVB-H technology is transmitted on the MTN network.
Nigeria began testing the DVB-H service in Abuja during September 2007 extending the service to Lagos later. Free-to-air access was allowed in both locations until December 2007 when conditional access was enabled.
A bouquet of 10 channels spanning movies including the immensely popular Africa magic channel, news, sports and children’s programs (cartoons) are available to customers who subscribe to the new service which is called DStv on the MTN network. However, this service has not proved popular and DSTV no longer promote this service.

StarTimes, a Chinese service in partnership with NTA has launched DVB-T2 technology in Nigeria and other African countries. DVB-T2 technology to provides a wider range of channels and sharper images. GOtv, owned by DSTV has also launched their own a pay Digital Video Broadcast (DVB-T2) technology as the Digital Terrestrial Television (DTT) service. GOtv use the latest DVB-T2 standard leapfrogging the outdated T1 system that is still being utilized by some pay television operators to launch digital services worldwide.

AVERAGE CONSUMPTION OF PAY TV/ AND NON-PAY TV IN NIGERIA PER SUBSCRIBER PER DAY

Research shows that the consumption pattern of the average Nigerian TV Viewer is as follows:

  Weekdays Weekends

 

Average hours of TV the typical Nigerian Pay -TV subscriber consumes per day

 

Worker – 3 hours

Non-worker – 7 hours

 

6 – 8 hours

 

Non Pay -TV subscriber

 

6-8 hours 10-12 hours

 

ALTERNATIVE FORMS OF ENTERTAINMENT CONSUMPTION IN NIGERIA

The country’s entertainment and media businesses are fragmented and poorly organised and financed, unable to stimulate and meet domestic demand. The number of Cinema Screens in Nigeria is yet to Number 200 for a population of a 160 Million people. Thus, the consumption of entertainment products is structured as follows:

-                Free to Air TV

-                Cable/Pay TV

-                DVD

-                Cinema – Low penetration of screens across the country

-                Internet and Web Based entertainment Products (Low Penetration)

-                Games (X Box, Playstation etc.)

-                Music Concerts/Comedy Shows

-                Theatre

 

AVERAGE REVENUE PER SUBSCRIBER

Rates for set up and subscription are as follows for existing platforms

DSTV – Satellite Cable Service

Set top box Purchase – From USD200 for SD Set top Box to USD600 for a HD PVR Set top Box

Monthly Subscription – USD30 standard bouquet to USD100 for full bouquet

 

DTT

Star Times/Go TV – Set Top Box Purchase – From USD60 – USD90 for SD Set top Box

Monthly Subscription – USD40 – USD60

 

Free to Home

Though a regime exists for the payment of TV licenses, this is ineffective and difficult to enforce.

 

STATE OF MOVIE THEATRES IN NIGERIA

Not more than 200 screen exist in Nigeria

 

INTERNATIONAL BOX OFFICE ANALYTICS OF NIGERIA MARKET

Box office analysis 10 biggest films:

 

1      Marvel The Avengers

2      The Dark Knight Rises

3      Skyfall

4      Argo

5      Django

6      Think like a man

7      Flight

8      Taken 2

9      Safe House

10  Mission Impossible 4

 

 

Top 5 for Children and Teens:

 

1      The Hobbit – An unexpected journey

2      The Twilight Saga – Breaking Dawn

Brave

3      Madagascar 3

4      Wreck it Ralph

5      MIB3

6      Dr Seuss the Lorax

7      Hotel Transylvania

8      Despicable Me

9      Ice Age – continental Drift

 

5 Surprises:

 

 

1      ABCD – Bollywood movies

2

5 flops:

 

 

1      John Carter

2      Battleship Galactica

3      Cowboys and Aliens

4      Dredd

 

General cost relating to a movie night out for 1 person Parking: N200

Movies Cost: N1500

Refreshment: N1500

 

Total cost: N3200/£13.45/$20.26

 

5 big sports events 1      Barclays EPL, UEFA, World Cup, AFCON

2      Tennis (Wimbledon, US Open),

3      F1

4      Basketball

5      Cricket

6      Olympic

7      Super bowl.

 

List the 10 most popular: Actors:

 

1      Brad Pitt

2      Jonny Depp

3      Leonardo DiCaprio

4      Samuel L Jackson

5      Zac Efron

6      Will Smith

7      Bradley Cooper

8      Eddie Murphy Tom Cruise

9      Robert Pattison

10  Robert DeNiro

 

Actresses:

 

  1. Julia Roberts
  2. Cameron Diaz
  3. Cate Blanchett
  4. Kate Winslet
  5. Jodie Foster
  6. Nicole Kidman
  7. Sandra Bullock
  8. Halle Berry
  9. Emma Thompson
  10. Angelina Jolie

 

Popstars:

 

  1. Britney Spears
  2. Lady Gaga
  3. Justin Bieber
  4. Riahanna
  5. Alicia Keys
  6. One Direction
  7. Beyonce
  8. Jonas Brothers
  9. Madonna
  10. Katy Perry

 

20 most popular TV show
  1. American Idol
  2. Dancing with the Stars
  3. The Bachelor
  4. Keeping up with the Kardashians
  5. X Factor
  6. Project Runway
  7. Dr 90210
  8. The Young and the Restless
  9. Married to Jonas
  10. Good Wife

 

 

 

 

  1. The Voice
  2. Shameless
  3. Spartacus
  4. Law & Order
  5. Opera Winfrey Show
  6. Ellen
  7. Crime Scene Investigation
  8. America Got Talent
  9. Revolution
  10. Deception

 

20 most popular kids shows
  1. Hannah Montana
  2. Snow White
  3. Shake it up
  4. The Suite life on Deck
  5. Suites life of Zack and Cody
  6. That’s so Raven
  7. Big Time Rush
  8. Jonas
  9. Drake and Josh
  10. Good luck Charlie

 

  1. Zoey 101
  2. Wizards of Waverly Place
  3. Amanda Show
  4. Sonny with a chance
  5. Unfabulous
  6. Cory in the House
  7. Victorious
  8. Icarly
  9. Lizzie Mc Guire
  10. Glee

 

5 most popular sites
  1. Yahoo
  2. Gmail
  3. Facebook
  4. Google
  5. Twitter

 

 CROSS MARKETING STRUCTURES OPPORTUNITIES

Current opportunities and structures for cross marketing of content through retailerships and telecommunication companies are in its early stages, mainly due to a very informal and unstructured distribution system. However, there are opportunities opening up in the telecommunication sector, where new entrants have established channels via mobile access (though has not proved commercially viable as a business model as of yet).

With a view to what is workable in the market place, one should be targeting business-to-business solutions where such cross marketing opportunities and solutions make commercial sense.

 

DVD & HOME ENTERTAINMENT

There are approximately 6,900,000 TV sets. As of 2000, the year for which statistics are currently available, Nigeria has roughly 750,000 personal computers. Based on current research available data suggests that Nigeria has now more than 11 Million TV sets, 60 Million Mobile Phones, 3.5 Million PC’s, Laptops and tablets. Obviously the penetration level of the Mobile phone from almost zero in 2000 to more than 60 Million in 2013 is an indication of the high penetration of Mobile phones. In addition the distribution of home entertainment products (DVD, Blue Ray) in Nigeria, is largely informal, mainly pirated and difficult to provide statistics other than you can be sure of finding in most homes a pirated DVD or two.

NUMBER OF DEVICES IN USE IN NIGERIA

DVD/BLUE RAY PENETRATION & RENTALS IN NIGERIAN MARKET SPACE

Details, facts and figures are not available regarding this question. However, it is clear that penetration is there, but mostly pirated content. This also applies to Game consoles, which are mostly a middle class targeted application. However, again in terms of population the penetration would also be low.

TABLET & SMART TV PENETRATION IN NIGERIA

Facts Not available

 RETAIL PRICE FOR HOME MEDIA

Almost all media retailed in Nigeria is pirated, however a few outlets do offer original content, but this is rare:

Original DVD: USD4.00

Pirated DVD: Between USD10 – 20

Original CD – USD2.00

Pirated CD – USD10 – 20

 

INTERNET PENETRATION

Rank Country Internet

Users

Percentage of

Population

Year
9  United Kingdom 51,412,657 82.00 2011
10  Nigeria 47,143,356 28.43 2011

 

 BROADBAND PENETRATION AND SPEED

Rank Country or territory Fixed broadband

Subscriptions

Percentage of

Population

Year
90  Nigeria 99,108 0.06 2010  

 

VIDEO CONTENT AVAILABLE ON WEB

There are no restrictions in Nigeria regarding content available on the web. In real terms everything is able if you have the Internet speeds to download, stream and make payment for content that requires payment. With the introduction of international credit/debit cards such a Visa, MasterCard etc. Nigerians have a window of opportunity to view any video content available around the world on the web.

 

THE NIGERIAN MOBILE MARKET

Nigeria has overtaken South Africa to become the continent’s largest mobile market with now over 90 million subscribers, and yet market penetration stands at only around 60% in early 2012. Subscriber growth had slowed significantly during the global economic crisis, re-accelerated in 2010 but then slowed again in 2011. Much of the remaining addressable market is in the country’s rural areas where network rollouts and operations are expensive. This in combination with declining ARPU levels is forcing the networks to streamline their operations and to develop new revenue streams from services such as third generation (3G) mobile broadband, mobile payments/banking, and others. At the same time the operators are rolling out national fiber backbone networks to support the ever-increasing demand for bandwidth. At least two operators are rolling out fourth generation (4G) LTE networks.

TABLET PENETRATION

Data not available.

PC AND LAPTOP PENETRATION

A new report by Nigeria’s National Bureau of Statistics (NBS) has revealed that the country has a 4.5 percent personal computer (PC) penetration.

BusinessDay, a local newspaper, reported that the data was revealed in a survey recently conducted under the “Annual Socio-Economic Report: Access to Information and Communication Technology (ICT)” by the NBS and Central Bank of Nigeria (CBN).

Despite the significant growth experienced in the country’s telecom market which according to the Nigerian Communications Commission (NCC), currently has over 90 million active phone connections, the survey stated that over 95 percent of Nigerians lack access to a PC or the internet.

Based on the report, Nigeria, which has a populace of over 160 million peoples, has a national average total Internet access of 4.5 percent while actual PC ownership stands at 0.9 percent.

 STATE OF E-COMMERCE

With the emerging growth in e-commerce, Nigeria is fast-approaching an increase in economic growth; a major player in the e-commerce industry, the Internet has no doubt come to stay with its amazing possibilities.

Nigeria recorded an estimated 25 per cent growth in online shopping with revenues valued at N62.4 million in 2011, which is N12.5 billion increase from 2010 as reported by Euromonitor international, a global market research organization.

With over 160 million people, Nigeria stands a great chance to become the next e-commerce hub of Africa. Online shopping has changed the way customers and retailers think. Customers are constantly seeking to comfortably shop endlessly while retailers are constantly seeking new paths to growth. Nigeria’s prospects for online retail success are closely related to how many people use the Internet and how many are comfortable purchasing products online in terms of security and customer satisfaction.

Obstacles to the growth of e-commerce in Nigeria are lack of basic infrastructure like steady power supply, good roads as well as limited access to telecommunication infrastructure and high cost of Internet, hinder the growth of e-commerce in Nigeria.

There is also a need for further enlightenment as t business of e-commerce, not forgetting the menace of cyber-crime associated with our society.   The electronic way of doing business was a new concept in Nigeria. Most people are used to buying and selling face-to face were by they see and touch (physically) what they want, negotiate on best deals, and buy.

The government, experts in the e-commerce industry, online merchants, banks and all other stakeholders need to work together and collaborate, in order to avoid obstacles and benefit the nations from the outputs of e-commerce.

 AVAILABILITY OF ON-LINE MEDIA STORES

There are several major initiatives in this area. They are as follows:

www.buzznet.com

http://www.iroko.com

OVERVIEW OF LOCAL TV & FILM INDUSTRY

Television and Film production businesses create scripted and non-scripted content. Scripted content is drama, comedy and soap operas for which writers pre-determine the script and structure. Non-scripted programmes comprise reality 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 of actual events occurring during the show.

Generally, a television, satellite or cable network will license a specified number of episodes of a show for 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 of the sponsors to creative programming and formats that deliver their marketing objectives. All other distribution rights, including international and off-network syndication rights, are typically retained by the production company, or if 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 few for joint production of television programming for the Nigeria and African market. Pursuant to the terms of the joint venture agreements, the joint ventures are the exclusive vehicle through which either party may produce television programmes for the Nigeria market. The joint venture normally provide for split of all profits.

Production companies also produce feature films and made-for-television movies both independently and under co-financing arrangements with others. Or, also acquires rights in, and distributes, completed films produced and financed by others.

Revenue derives generally from licensing filmed entertainment product to broadcasters, sponsors and other aggregators. In addition revenue can be earned from purchases of DVDs of filmed 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 film and television properties and characters by entering into licensing agreements for merchandising, literary publishing, wireless, games, themed entertainment and promotional and advertising tie-ins.

The challenges faced by the sector in Nigeria are multi-faceted. Key amongst them are summarized below.

-          The current environment is plagued by copyright infringement otherwise known as piracy and this is a disincentive to investment in content creation.

-          There is a dearth of human capital in the creative and production sector of the industry.

-          There is a shortage of platforms for the exploitation of the content before it is available to making the cost of acquisition unduly high.

-          Access to funds for the creation and acquisition of content is challenging because of the low level of awareness of the potentials of the creative industry, by the financial sector.

-                Foreign direct investment in the creative industry is low as a consequence of the overall investment climate in the country. However, those who have shown risk for appetite in this area, and have show commitment and ability to sustain their investment have reaped immense profit and capital. A good example is MNET followed by the Chinese through STARTIMES.

MAIN PRODUCERS

Film Production:

Jetta Amata

Kunle Afolayon

Tunde Kelani

Teco Benson

Faruk Lasaki

Steve Ghokas

Chineze Anyaene

Mahmood Alli Balogun

Stephanie Okereke

Lonzo Nwekwe

Michelle Bello

Newton Aduaka

Ejim Onyekachi

Lancelot Oduwa Imaseun

 

TV PRODUCERS

IBST Limited

Aderemi Ogunpitan

Jungle Filmworks

Amaka Igwe

Greg Odutayo

Femi Odugbemi

Niji Akanni

Wale Adenuga

Femi Oduniyi

Ultima Limited

Osmi TV

Steve Ojo

 FILM & TV PRODUCTION FINANCING AND ECONOMICS

There are 3 major areas through which financing can be raised for a film project. They are as follows:

  1. Project Initiator: Production Companies or producers make cash investment into their movie project.
  2. The Investor: Funds raised can either be equity or debt investment. The equity investors acquire a share in the film potential profit while the debt investor earn interest at an ongoing rate or fixed mark-up.
  3. Project catalysts: Can be categorized as sponsor’s desire to promote investment in a country or region. For instance in Nigeria some state that may want to promote tourism in their region can sponsor movie projects.

Challenges facing the industry: 
Generally-raising funds for any type of project is usually challenging and not just limited to film/TV project financing. The Nollywood industry is faced with this challenge as the availability of funds affects the production quality of any movie. In 2010 the Federal Government announced its decision to float a $200 million revolving loan scheme for the industry, which can be accessed through the Nigerian Export and Import Bank (NEXIM). Only one Nigerian producer, Tony Abulu, has been able to access the fund through the NEXIM for the production of “Doctor Bello”.

Major challenges facing the industry in raising adequate finance from investors includes

  • High level of financial risk: This is as a result of the high capital requirement for any movie

Production. Consequently, it makes financing any movie a big challenge for most production companies. Production companies do not possess the financial resources to self-finance its film projects as they depend on outside sources of finance to keep a project going.

  • Uncertainty of cash flow: There is a high degree of uncertainty in predicting the level of cash flow that a movie generates and as a result investors are skeptical in funding movie projects. Investors do not know for certain if a movie would generate income/ revenues or not. This uncertainty is present from the inception of per-production stage until the movie gets to the audience. A movie generates income /revenue from cinema release (Box office), advert placements and DVD release.
  • Inadequate project development and business planning: Most production companies and producers do not have the right business plan for their movies; consequently, it affects accessing funds for movie projects.
  • Piracy and Government support: Piracy has a large effect on revenues generated from any movie. This affects raising sufficient funds, as investors are not attracted to invest in movie projects. Also government needs to do more by putting in place structures that would help to combat piracy in Nigeria.
  • Low level of technical expertise: This affects the quality of movies, which in turn affects the revenue generated from any movie.

Poor understanding of funding requirement and process: Most movie production outlet have a poor understanding of the funding process. In order to access funds from investors, movies need to be developed as projects that are bankable. Such a move project must be economically, technologically, socially and financially feasible.

LOCAL FILM DISTRIBUTION, REGULATION & PIRACY

There has been no formal film distribution structure in Nigeria in the last twenty years. The structure which exists in societies with a fully developed film industry whereby the commercial lifespan of a film begins with a box office or cinema release, followed by a video release, then broadcast on fee-paying television, before ending up on public television, does not exist in Nigeria.

Widespread pirating of foreign and domestic videotapes discourages the entry of licensed distributors. The distribution of the locally produced video film is currently carried out mainly in three big cities—Lagos, Onitsha and Aba. According to the system in place, the DVD’s are taken straight from the producer to the sellers, on a ‘sale or return’ basis. This is a system subject to abuse. The producers allege that the works are usually pirated, leading to low sales of the original copies. The traders as unsold then return many of these original copies. Films are also sold in other cities, distinct from those mentioned above, but the proceeds mostly go to pirates. About half of the revenue from the industry is supposedly lost as a result of the poor distribution network.

Piracy is a serious problem for the Nigerian video filmmakers. The Copyright Commission of the country has carried out various raids in the bid to fight this problem. However, it has been accused of going after only the small fry while leaving the kingpins untouched. It is notable that pirating of the Nigerian video films is not limited to the country itself. “International pirating of films is rampant. The Motion Picture Association of America estimates that more than 20 million pirated videodiscs, and 4.5 million pirated videotapes, were seized in 2000. Such pirating violates the international laws that protect copyrighted works. But intellectual property law experts noted that the pirating of Nigerian films will probably continue, in part because the filmmakers can’t afford the high legal costs of fighting it.

What would ordinarily have been a key distribution outlet, the cinema, fell into a decline in the country due to various reasons. These reasons include the economic decline and a state of insecurity, which made people less, inclined to spend time out of their homes. Most cinema houses in that period fell into disuse or were put to other uses.

However, with the improved economy and the changes in government policy, there has been a resurgence of interest in the establishment of cinema houses. Multiplex cinema house are already in operation in Lagos, Abuja and Port Harcourt, and it is expected that by the year 2008 about fifty more would have been opened all over country. Furthermore, given the economic potential of the industry, banks and other key financial institutions have expressed a lot of interest in investing in that sector.

The National Film and Video Censors Board (NFVCB) is the national regulatory agency empowered by its enabling laws to control and monitor all motion pictures distribution, exhibition and marketing. It was set up in 1993 to regulate the film and video industry in Nigeria. Up till fairly recently, the Board had focused most of its activity on the censorship and classification of films and videos. The role of the government, thus, in regulating the film industry has been extremely limited (some people have attributed some of the success of the industry to this fact). However, the Board is now set to play a bigger role in the regulation of the film industry. Through what it calls the “Nigeria in the Movies” project, the NFVCB has now introduced a new distribution framework policy as a means of regulating the market and protecting the industry. It is the aim of the Board to strive to put in place solutions to the problems listed above.

The initiative of the NFVCB consists of a strategic intervention through the implantation of enforceable standards in the film distribution system. According to the board, the key objective is to provide durable and commercially-viable structures, which will be acceptable both locally and internationally to the industry and potential investors alike, and having the required capacity to substantially meet the financial needs of the industry to engender self-sustenance, and also meeting all the requirements of being integrated into the country’s main organized private sector.

The new policy of the NFVCB has created a structure which regulates the categories and types of distributors, lays down guidelines for registration and licensing of distributors (for which certain fees are expected to be paid), and specifies the types of distribution rights which distributors at the various levels will possess as well as the controls to ensure that these rights are protected. The new policy also indicates the features of what would be considered a valid distribution contract, which, among other things, makes it mandatory to register the film/video as an intellectual property. One of the innovations of the policy concerns production financing and the protection, which it seeks to give the financier and the rights owners of films/videos.

The NFVCB policy goes ahead to detail the process of the release of films and the establishment of distribution proprietary rights. In this process, licensed distributors would be expected to submit weekly statutory reports on their distribution activities, which would be used in assessing the financial performance of films/videos. The NFVCB will be the sole authority in charge of the entire process except in cases where it delegates certain duties to other authorities.

This new policy of the NFVCB has received an ambivalent welcome. Some have hailed it as a necessary step for the improvement of the film industry. Others, however, have frowned at the intervention of the Censors Board. The filmmakers, for instance, are divided over whether they really want help from the government. Some of them fear that what they see as the interference of government could slow down the growth of the industry. They have also complained that the Board did not seek their input in the design of the new policy. Some others have quarreled with the registration fees, which the policy specifies, saying that they are too high and would force most of the present producers and distributors out of the market. But still others, on this same point, have expressed the opinion that it would be a way of raising standards in the industry by easing out the small time players who place more emphasis on making quick money rather than in providing quality productions.

As can be seen, what the National Film and Video Censors Board of Nigeria seek to do is to put in place a firm and reliable structure of distribution. In the light of the promised growth of the Nigerian film industry and its economic potential, as well as the innovations taking place in this industry, it would be o f interest to see how the implementation of this new policy of the NFVCB unfolds. Will this policy actually succeed in establishing a firm structure, which would make the economic potentials of the industry a reality? Will the Board be able to win the full support of the filmmakers? Are the plans of the Board sufficient to deal with the problems of piracy and the advent of the new technology? Will it succeed in its drive to resuscitate the cinema?

TV PRODUCTION ECONOMICS

TV shows outline: Popular TV shows in Nigeria fall into 2 categories (1) Internationally Licensed programming e.g. Pop Idol, Big Brother, Deal or No Deal, The Apprentice which are produced for local TV sponsored by a brand and (2) Locally generated content of various genres. In both cases such productions, which meet international quality standards with the right production values, are normally sponsored by a brand that pays for the production, airtime and promotion.

Broadcasters in Nigeria as a rule do not commission programming. Their operations are strictly to retail airtime to the highest bidder, hence the huge amount of poorly produced programming in Nigeria. In effect as the standard of living improves in Nigeria, and income increases these stations will loose viewers due to their inability to develop business models that generate good television and viewership that attracts advertisers.

Number of episodes: Normally a quarter is 13 episodes

Genres & main themes: All genres though we have had thrown at the Nigerian viewer all types of programming, even Teleneovellas badly dubbed into English.

Whilst there are still many salient points and issues to be cleared and understood regarding business operational models, this document should basically be seen as a road-map of the market capabilities and processes towards understanding of the potential and challenges of the market.

Content Value Chain

Establishing a content value chain is the starting point and the most critical. Content value chains are multiple, fast maturing and becoming increasingly complex. Entertainment/TV content, VOD content and Adverts form essential parts of the content creation and distribution value-chains. Besides these, domain driven content such as Enterprise content, Digital signage, Maps, Tourism content, and Digital Cinema have high consumption and churn rates.

Additionally, user-generated content is changing the current value chains dramatically – Wikipedia, YouTube, flickr, facebook are redefining ways in which users experience content. There is also a need to re-invent services which are being offered to consumers to match the experiences of today’s consumer in their respective markets by providing for them a much richer, interactive and contextual user experience leveraging a uniqueness of possessing a service infrastructure and derivatives such as subscriber information, usage, profile and other data.

Any entrant into the Nigerian Market will have to have a plan on how to acquire subscribers, not eyeballs, through delivery of quality media content. Media delivery via cable and other open mediums are opening new opportunities for Media publishers to reach subscribers directly, which should always be the focus. On the other hand, Service providers such as Telco’s, ISPs and Cable operators are building service platforms and content stores to deliver reliable services to end subscribers.

This makes the Nigerian market a very competitive one.   Focus and adoption roadmap for any project will have to be as follows:

ATTRIBUTE DESCRIPTION CUSTOMER VALUE
 

Select

Identify and select key titles,

Publishers and third party

Distributors of content.

Saves time in gathering authoritative and interesting content.
 

License

Extensive contracts are put in place directly with publishers, covering legal and commercial terms. The aggregator handles copyright payments, directly with the publisher.

Specific rights secured ensuring high quality and timely delivery.

 

Normalize

Thousands of different data formats are converted, so that content appears uniform, and is stored securely. Uniform appearance saves time in gathering info from articles.   Business continuity procedures prevent

Interruption in supply chain.

 

Archive

Data is permanently stored, and backed up for future reference. Data is available for in-depth archival searching; any data used by a customer remains available and can be referred to in the future.
 

Index

Consistent and granular metadata is applied. More precise and comprehensive

search helps customers reach the information they need faster.

 

Productize

Build content into a product environment and/or interface that enables the extraction of this data; along with associated functionality and delivery. A single point of access for content. Makes it easier to get to the specific information needed.
 

Service

Customer Service desks and

Customer Training.

Resolve issues at point of need; training provides customers with the tools and skills to find information faster.
 

Maintain

Continuous monitoring of incoming data and related problem solving, such as publisher driven editorial

Amendment

Maintain the timeliness and accuracy of content.
 

Secure

Protect the database from security threats, and implement business

Continuity measures.

Ensures uninterrupted supply of information, and removes risks in accessing content.

 

These tasks can further be broken down as follows:

  • Licensing, scheduling and delivery of Content over the platform – Video, Films, Games, Channels, and VOD -Content aggregation, management and discovery – Triple play converged service delivery.
  • Capitalize on trends in B2B content distribution – Digital Advertising Platforms, develop “long-tail” characteristic for content consumption.
  • Content availability – Availability of content in favorable contractual terms, pre-trans-coded metadata and media formats, packaging of content to enable rapid content distribution
  • Content Convergence – Multi-modal delivery and consumption of content, P2P based content distribution
  • User contributed content – UGC processing, distribution and consumption
  • Contextual search – content-based media retrieval, presentation and personalization of content
  • Ad-funded content services – non-intrusive, context, behavior based ad insertion, targeted advertising – Subscription and Advertising based subscriber management
  • Business models – innovate business models enabled by Ad-funded, Brokerage models, Retail (Apple Store), Info-mediary (User profiles)
  • User Experience management

This implementation we hope will deliver value for our envisaged consumer and can be the measure of service advantage for the consumer.

ADOPTION ROADMAP

I will in future additions to this blog be looking at the adoption road map for media business in Nigeria which will include phases of adoption:

Phase I

  • Identify Market Segment Product Taste
  • Develop Relationship with content owners. Licensing, Acquisition and Agreements
  • Content – Content Ingestion, Content Processing, Content QA, Content Distribution
  • Contract Management & Revenue Settlement systems
  • Content packaging and bundling
  • Open metadata exchange interfaces
  • Order management and content delivery and distribution
  • Support for User generated content (UGC)

Phase II

  • Profile DB – Subscriber profile & Network profile (Presence, Location)
  • Three screen strategy
  • Enhanced Search & recommendation engines
  • Offer management, Rating and Billing system
  • Advertising Platforms – Inventory, Campaign managements
  • Enhanced CPE audience measurement and analysis tools
  • Ad-funded business models

Phase III

Enhanced user profiling and distribution management (via new analytical, statistical models)

CDN optimization for QoE (Quality of Experience) and QoS ( Quality of Service).

Benefits and Targets

  • Rapid Integration and Service Launch as agreed
  • Rapid integration of metadata and media with VOD Platforms, Broadcasters, ISPs and other Cable Operators. Creating independent Channels in the offering
  • Open standard of metadata exchange enabling standardization of media
  • Digitization of “needed media assets”
  • Mature content-life cycle management function
  • Content Product Acquisition, Inventory management – Content Catalogue creation, Metadata creation, Asset Tracking
  • Content Quality Assurance -Encoding profiles, Assembly
  • Contract Management -What do I own, how do I negotiate, Usage rules
  • Editorial desk – Create schedules, create promotions – assemble trailers, images, music etc
  • Network Ready – Validate content dispatched Content services convergence benefits
  • Improved User experience
  • OPEX and CAPEX improvements
  • New revenue generation options

REGULATORY AUTHORITIES

NIGERIAN BROADCASTING COMMISSION

The National Broadcasting Commission is mandated by Section subsection (1) of Act No 38 of 1992 as amended by Act No 55. Of 1999 to carry out the following functions;

(a) Advising the federal government, on the implementation of the National Mass Communication Policy, with particular reference to broadcasting;

(b) Receiving, processing and considering applications, for establishment, ownership or operation of Radio and Television stations including;

(I) Cable Television Services, Direct Satellite Broadcast and any other medium of broadcasting.

(ii) Radio and Television stations owned established or operated by the Federal State And Local Government.

(iii) And stations run under private ownership.

(c) Recommending applications, through the Minister of Information and, National Orientation, to the President, Commander-In-Chief of the Armed forces, for the grant of radio and television licenses;

(d) Regulating and controlling the broadcast industry;

(e) Undertaking research and development in the broadcast industry;

(f) Receiving, Considering and investigating complaints from individual and bodies corporate, regarding the contents of a broadcasting station and the conduct of a broadcasting station;

(g) Upholding the principles of equity and fairness in broadcasting;

(h) Establishing and disseminating a national broadcasting code and setting standards with regards to the contents and quality of materials for broadcast;

(I) Promoting Nigerian indigenous cultures, moral and community life through broadcasting;

(j) Promoting authenticated Radio and Television audience measurement and penetration;

(k) Initiating and harmonizing government policies on Trans-border direct transmission and reception in Nigeria;

(l) Regulating ethical standards and technical excellence in public, private and commercial broadcast stations in Nigeria.

(m) Monitoring broadcasting for harmful emission, interference and illegal broadcasting;

(n) Determining and applying sanctions, including revocation of licenses of defaulting stations, which do not operate in accordance with the broadcast Code and in the public interest;

(o) Approving the transmitter power, location of stations, areas of coverage as well as regulate types of broadcast equipment to be used;

(p) Ensuring qualitative manpower development in the broadcasting industry, by accrediting curricula and programmes for all tertiary training institutions that offer Mass Communications in relation to broadcasting;

(q) Intervening and arbitrating in conflicts in the broadcast industry.

(r) Ensuring strict adherence to the national Laws, rules and regulations relating to the participation of foreign capital, in relation to local capital in broadcasting

(s) Serving as national consultant on any legislative or regulatory issues on the broadcasting industry;

(t) Guaranteeing and ensuring the liberty and protection of the

Broadcasting industry with due respect to the law and;

(u) Carrying out such other activities as are necessary or expedient for the full discharge of all or any of the functions conferred on it under, or pursuant to this act.
THE NIGERIAN COMMUNICATIONS COMMISSION

The (NCC) is the independent regulatory body for the Nigerian telecommunications industry. The NCC was created under Decree number 75 by the Federal Military Government of Nigeria on 24 November 1992. The NCC was charged with the responsibility of regulating the supply of telecommunications services and facilities, promoting competition, and setting performance standards for telephone services in Nigeria.

 

 

I hope you find this article useful.

Aderemi Ogunpitan

 

OPPORTUNITIES IN MEDIA AND ENTERTAINMENT IN NIGERIA

BACKGROUND
IBST is one of Nigeria’s leading creators of television, music and film programming, new media and entertainment products. IBST designs, creates, produces and distributes media, entertainment and lifestyle products based on contemporary African culture. It is structured as a Limited Liability company with 100% Nigerian ownership, operating businesses in television, film and event production, interactive media services and broadcasting. IBST also provides consultancy and implementation of media technology projects and systems integration which have included major projects such as the Broadcast facilities for the All Africa Games and a recent development of educational studios in 6 Universities in Nigeria for the Interactive Learning Network an initiative of NEPAD and the Educational Trust Fund (ETF).

IBST’s mission is to be the definitive Nigerian media company creating breakthrough cross-platform African media content that entertains educates and informs; which delivers value to contemporary Nigerian culture and lifestyle, enhances the quality of media and content experience of Nigerians living within and outside the continent, and finally to tell our stories in our own ways to the rest of the World.

IBST’s business objective is to become a leading media and entertainment company in Africa, delivering compelling content to a global audience. This means we must always strategically be aware of the trends, opportunities and challenges that our industry presents in the face of economic variables.

GLOBAL TRENDS AND MARKET OPPORTUNITY
Globally, digital technologies and the Internet are transforming the media, entertainment and telecommunications industries. New entrants into the entertainment industry, from 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 for compelling music, TV, and film content.

Developing countries are claiming increasing shares of 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 from the African continent, Nigeria is key to conquering Africa as it has the potential to be Africa’s biggest entertainment market by value, having Africa’s largest population and strongly youth-skewed demographics. The recent unmeasured success of Nollywood movies and Nigerian urban music – in spite of poor structural support for the entertainment industry, suggest that success, from an external demand standpoint, is within reach as well.

Further, the growth of pan-continental brands in Africa 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 of media and entertainment in marketing to drive product adoption.

This confluence of factors presents a unique opportunity for 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 for media and entertainment products towards a single global market. As the success of a single global marketplace enabled by technology creates the Holy Grail for the entertainment industry – one platform for all products for all the consumers in the world. For the time-being, demand for TV, film and music content is being driven by new, well-financed competitors to broadcast, satellite and cable operators – fixed and mobile telecommunication operators and the major internet media aggregators.

MARKET SIZE AND GROWTH PROSPECTS
Developing countries account for an increasing share of global exports in cultural goods – from $4.2 billion and 11.2% in 1994 to $11.6 billion and 21.2% by 2002. This growth was particularly pronounced for audio-visual media, where developing countries’ share rose to 44.6% in 2002 from 27.6% in 1994. In 2008 developing countries accounted for more than $17.8 billion in exports of cultural goods an increase of more than 50%

China (including Hong Kong) and India, who account for a large share of 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 offers similarly compelling growth prospects.
Apart from its strong demand base, Nigeria generates film, 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 of Nigerian films enter Kenya every year. These films account for about 60% of the total films traded in Kenya per year, which is put at between $3 million and $6 million. However, the country’s entertainment and media businesses are fragmented and poorly organized and financed, unable to stimulate and meet domestic, much less continental or international, demand.

Key constraints to the sector’s growth and development include financing, domestic and international distribution, and the dearth of technical and creative training, As a result, most players in the Nigerian entertainment and media have therefore stayed at the artisan level, unable to muster the depth and breadth necessary to capitalize on continental and global opportunities.

This confluence of factors 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 following areas:
• Skill Set
• Music
• Television and Film
• Content, New Media & Technology

Lets look at some of these opportunities:

SKILLS SET
The Media and Entertainment industry is full of people with potentials, however the major setback is the unavailability of appropriate skillset. By this I allude to the inability to perform and carry out the most basic functions and roles within a set environment or project.

The need in the media and entertainment industry for well-trained professionals cannot be over-emphasized. As the industry professionalizes, demands higher standards of delivery and creativity, the gaps to be filled will become greater creating opportunities for people who invest in proper training, apprenticeships and understudying the requirements of delivering high quality creativity, sustained performance and reliability.

From scriptwriters and directors, to talent managers and artiste agents; from graphic designers to studio managers, animators and content developers, as we evolve the industry and resource for 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 of the pyramid unless you are competent the opportunities will elude. So the first and most important things is to get the appropriate skills you need to work in the industry of your choice.

MUSIC
The business of 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 from a distance in the management of 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 of New Releases into the London Market, so whilst you will excuse my not so in-depth knowledge of the industry, I have been a close observer for 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 far beyond the huge increase in the quality of Music Videos, and the prominence of some artistes in national newspapers, presence on MTV Base, Channel O etc. It goes beyond the hype and should focus 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 for products and a business model that destroys the pirates are imperative for sustainability. Regulatory and industry collaboration is important. However, this model must also take into cognizance the era of the digital platform (iTunes etc.) and what this means to our industry in Nigeria. The opportunities that convergence provides and eventual appearance of broadband albeit slowly in Nigeria will change the face of Music.

Music industry primarily derives revenue from sale of recorded music in CD format and digital downloads. This revenue comes principally from purchases of CDs by wholesale or retail distributors and direct retailing by “street teams”. In addition, revenue can be derived through licensing music for download on Internet-based distribution services such as the iTunes, which I have mentioned before.

Revenue can also be earned from licensing music for ringtones and similar mobile applications, which a lot of companies and young Nigerian entrepreneurs are exploiting today through content aggregation.

Revenues in the music industry can also be derived from sponsored concerts and special events which as a rule are promoted and created as promotion vehicles by forward thinking businessmen and women who have the vision to see opportunities and engage at a level where they can take their plans forward.

One of the advantages of the music business is its contractual flexibility with regard to the timing and amounts of advances paid to existing recording artists, songwriters and musicians which provide an expansive blanket for agents, managers, and a high level of discretion regarding anyone who wants to invest in new artists and songwriters, which further 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 finding, 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 meaningful level of sales and build an enduring value of cataloged music by continuing to generate sales on an ongoing basis. Identify promising songwriters and producers who will work in conjunction with you and your recording artists in producing work that will increase the appeal of your recorded music offering. Focus on nurturing and developing songwriters and producers as a key competitive advantage to your business thereby enabling your business to produce music significantly better structured, performed and recorded than that offered by direct competitors.

• Set up a business that Capitalizes on Digital Distribution and Emerging Technologies. Digital formats represent new avenues for the distribution, promotion and exploitation of our recorded music assets. Internet and wireless channels for the purchase of music holds significant promise and opportunity. These distribution channels, such as the Apple iPod and iTunes service, are effective means to reach a global market of consumers. As networks and phone handsets become more sophisticated, music will become increasingly available on mobile phone platforms through wireless service providers via ringtones, ringback tones, full track downloads and music video downloads.

• Provide an outlet for Products In The Continued Development And Formalization Of Nigeria Physical Distribution Channel. The media distribution system in Nigeria is rudimentary and offers significant opportunity for improvement. Try to work with existing distribution partners and new distribution ventures in Nigeria to improve the distribution system for 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 of Nigeria. Act as their local agent and distributor through concerts and promotional events- to capture and stimulate market demand for your agency Music products.

• Develop a University-Campus Based Promotion and Distribution Network as a significant part of a distribution and promotion strategy for Music. Develop a network of student-representatives on University and polytechnic campuses to serve as promoters, distributors and general cheerleaders for Music and artists.

TELEVISION AND FILM
The core of the businesses I have been involved in for more than 20 years is filmed entertainment, which engages in television and feature film production and distribution although I must admit my company has been more prominent in the area of 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 for 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 of actual events occurring during the show.

Generally, a television, satellite or cable network will license a specified number of episodes of a show for 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 of the sponsors to creative programming and formats that delivers their marketing objectives. All other distribution rights, including international and off-network syndication rights, are typically retained by the production company, or if 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 few for joint production of television programming for the Nigeria and African market. Pursuant to the terms of the joint venture agreements, the joint ventures are the exclusive vehicle through which either party may produce television programmes for the Nigeria market. The joint venture normally provide for split of all profits.

Production companies also produce feature films and made-for-television movies both independently and under co-financing arrangements with others. Or, also acquires rights in, and distributes, completed films produced and financed by others.

Revenue derives generally from licensing filmed entertainment product to broadcasters, sponsors and other aggregators. In addition revenue can be earned from purchases of DVDs of filmed 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 film and television properties and characters by entering into licensing agreements for 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 of skilled personnel in all areas of Film and TV production in Nigeria with the requisite education, practices and knowledge of processes. If you have the required skills and knowledge in the following areas you will not be short of 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 professionals.

Directors, Producers, scriptwriters, Production Managers, Directors of Photography, Art Directors, Production Designers, Animators, Graphic Artistes and Editors etc. at the top end of 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 profession you desire within the industry is up to you. It’s an open space waiting to be filled.

CONTENT, NEW MEDIA & TECHNOLOGY
The challenges facing 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 of the future.

One of the key factors in Nigeria is that Household usage and adoption of
communications services will accelerate as more people are provided access
to the mobile phone, Internet and affordable cable services. Mobile phone
usage will increase and in a country where the 70% of the population is below 30, the number of connections to make low-cost calls, SMS and access
downloadable content on the phone will start to make major in roads to
traditional content platforms.

In many sectors, increased usage or signing up for new or more advanced
services would inevitably lead to increased costs to the consumer. However,
in the communications sector, a combination of new technology, intense
competition between providers and regulatory intervention, where required, will lead to significant 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 of their lives producing content need to be excited at the prospects and study the trends of the industry, what is happening and where it is going.

Not only do we need to now start developing new models for 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 of producing multi formatted content. There are many issues to be resolved such as multicasting, the role of the Internet, compensation for content, protection of intellectual property and so many other parameters.

However, playing a defensive game will leave you behind. Attack is the best
form of defense and our future successes in media and entertainment will depend on our creative skills and abilities to exploit every opportunity and technology on every platform available from Satellite and cable to mobile and gaming.

One of the most interesting trends is the striking evidence that our very young and growing ‘networked generation’ is turning away from television, radio and newspapers in favour of online services, including downloadable content – used on multiple devices such as iPods and mobile phones – and
participation in online communities such as facebook and youtube etc.

Despite the power of television to a largely rural audience, the evidence is that Television is of declining interest to many 16-24 year olds in the urban areas; Of the television they do watch, an even smaller proportion of their time is spent viewing public service broadcasting channels. Instead, the Internet plays a central role in daily life.

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 of the Internet also continues to influence 15-24 year olds’ consumption of other media. Their radio listening is getting lower compared to the wider population; additionally they read newspapers less as a consequence of 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 of friends 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 platforms will be significant as Nigerian Producers and broadcasters
get ahead of the game and source for the significant revenue streams
available. A key factor is that content produced here would have to meet
international production standards and be available everywhere and on any
type of device. We need to incorporate and work with Telco’s, broadcasters, content aggregators and media distribution agents. Our future is all about distributing signals to every device available and producing the content that fits 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 of
the content TV producers provide, and new stream of programmes are
potential revenue streams. Planning ahead is key, and staying abreast of
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 of 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 future.

Lets look at some important pointers. In a recent Media report published by
MediaReach Limited, Lagos, I have been able to establish from this report
and their previous reports over the past three years the following:

In an important change in habits, viewers in Free-to-air households now
spend more time watching privately owned TV channels than any one of the
state or Federal Government owned channels.

Advertising and Sponsorship revenue remains the largest source of funding
for television channels in Nigeria with revenues up by 18% on previous years
for some stations. Overall, television industry revenues increased by 21%
from last year based mostly on increase spend from the Telco and Financial
sector of the economy.

Regarding online and new media services, the office of Communication
(OFCOM) reports and I quote “Online advertising continues to grow in
importance as a mass marketing medium, attracting significant revenues
away from 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 for the first time, the proportion of households relying on mobile phones exclusively is significant enough to start looking at emerging opportunities in this realm.

Mobiles are becoming the preferred means of making calls in many
households. Greater competition, falling prices and the erosion of traditional revenues and audiences are transforming the sector. A new generation of consumers is emerging for whom online is the lead medium and convergence is instinctive.

For broadcasters the challenges are even more daunting, if they hope to be in business many years from now they must start to chart a new course and
develop business models that guarantees viewers and advertisers value.
Their scheduling and programming must offer 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 of the digital platform and the
great opportunities it offers. If 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 of an idea what the digital realm offers. Their minds are numb; they don’t even know where to start.

As Media and Entertainment professionals it is our responsibility to start providing some of these answers to consumers, advertisers and professionals alike, as a means of 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 from where we are today and build an enduring media and entertainment sector that truly provides great entertainment, first class information and an enduring platform that has commercial viability through the provision of 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 profitability.

You must understand what the future holds and position your self in a manner that enables you to be first to market, or alternatively provide a unique and quality service or product. You must engage at all levels and never stop thinking of what’s coming next and be there ahead of your competition.

I wish you the best of luck.

RECREATING THE NIGERIAN TV PRODUCTION INDUSTRY

Tags

Television production can be defined as the creation, development, production, management and distribution of commercially innovative and original TV content and properties across multiple delivery platforms and channels. An individual or company may well supply a blend of content and associated services to its customers, clients and broadcasters.  Today this includes also the opportunities the telecommunication industry presents to content providers.

When I first got involved in TV production in Nigeria many years back broadcast content was mainly produced by broadcasters for their own channels, there was minimal independent production in the country and this was mainly focused on TV commercials and the odd drama production.   That has changed and over the years many local independent producers have started creating, developing and producing content off the back of sponsors who seeking customized solutions of high quality to leverage their brands commission these independent producers.  More recently in the broadcast channels sector this role has mainly fallen to the likes of MNET and to a lesser extent Hi TV who see the need and viability of commissioning local independent producers to generate content, viewers and advertising revenue for their channels.  Local broadcasters are yet to develop business models that make this type of commissioning possible; creating products that deliver viewers and advertising through commissioning their own proprietary content.  The inability and short-sightedness of local channel owners to develop business models that enable the commissioning of Independent production for their channels remains a strategic roadblock to the development of the Nigerian TV Industry.  How local broadcasters, especially those in the terrestrial domain innovate and react to this dilemma in their business models is something that should give all Nigerian independent producers sleepless nights. Continue reading

Follow

Get every new post delivered to your Inbox.