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Confidential: Strategy & Business Development Group Confiden'al 1
Presented By John Ugbe
MD, Mul'Choice Nigeria
Nigerian Entertainment Conference 2016 Interven:on Strategies
20.04.2016
Confidential 2
• Contribu'on to GDP rose from 1.4% in 2013
• To an impressive 2.5% in 2015
• An equivalent of N9 Trillion in total Earnings
• Happy to say our contribu'on from 2011/12 to 2014/15 is N1.5 Trillion ($796.8m)
• American Entertainment Industry contribu'on to the economy sits at 6%, and this is valued at about $700 billion
• Our contribu'ons seem small in comparison, but there is massive poten'al for improvement
Entertainment currently contributes approximately – 2.5% to Nigeria’s GDP. This comes to about N9 trillion ($5billion) in total value - http://www.tradingeconomics.com/nigeria/gdp-growth-annual MultiChoice’s contribution to the Nigerian economy from 2011/12 till 2014/15 is estimated to be N1.5 trillion ($796.8m) – MultiChoice’s Economic Impact, by Deloitte.
Overview
Confidential 3
Why We Intervene
§ Market development § To develop and grow this industry
§ To create jobs § Affirm Nigeria’s leadership posi'on in music and
movies on the con'nent § Aiming for interna'onal recogni'on § To increase contribu'on to Nigeria’s GDP
ü Earning well needed FOREX § For profit and growth
Confidential 4
§ Piracy ü The bane of the crea:ve industry
§ Capacity
§ Dearth of skills ü Our ar'stes are imbued with the natural skills to excel
however…
§ Infrastructure ü Inadequate resources; studios and produc'on facili'es
§ Funding
§ Distribu'on
§ Structure ü …enables appropriate lobbying
Challenges Hindering Growth Of The Industry
Confidential 5
§ Canada ü 5 Funds for the Media and Entertainment industries -‐ $1.6Bn
-‐ The CFFF – about 49% equity or 49% recoupable advance in a feature film
ü Tax credits – 25% of Labour and up to 15% of total costs § South Africa
ü A 20% tax reduc'on on produc'on expenditure for foreign produc'ons filmed in
South Africa with a budget of R12-‐million (about $1,3-‐million) or above.
ü A 22.5% to 25% reduc'on if filming and post-‐produc'on takes place in South
Africa. Post-‐produc'on expenditure must be R1,5-‐million (about $166 000) or
above to qualify
What Have Others Done?
§ NIGERIA ü Nigeria gave $3.3bn in tax breaks to the Oil & Gas in 10 years
ü The Nigerian government gave a $200million grant to the
entertainment industry in 2010
Confidential 6
§ Government ü Strong Legisla'on and Enforcement
ü Funds and Grants – increase supply and reduce costs
ü Subsidies
ü Tax credits
ü Infrastructure – Cowork and impact on the programmers
§ Private sector ü Bank loans
ü Sponsorships – Branded content etc.
ü Commissioning
§ What have we done ü Market crea'on
ü Plaform to showcase interna'onally
ü Funding through commissioning and buying
ü Capacity building through workshops and own produc'ons
ü Figh'ng piracy
Who Should Intervene?
Confidential 7
• New Direc:ons Tajudeen Adepetu (Soundcity, Spice TV, ONTV Max, Televista, TRYBE)
• West African Idol Timi Dakolo | Omawumi
• Big Brother Nigeria/Africa UN Nwachukwu | Ebuka Uchendu | Gideon Okeke
• M-‐Net and SuperSport regularly organise workshops to build technical
capacity in ac'ng, film produc'on, edi'ng and direc'ng
• We have invested over N15.5billion in local produc'ons
• The Voice Nigeria Africa Magic and Airtel (potenNal to launch Nigeria’s next
breed of singers)
Some of Our Successful Collabora:ons
Confidential 8
• Strong regulatory and legal framework ü The bedrock of an effecNve copyright system
• Distribu'on structure ü We must fix our distribuNon value chain, leverage on new digital technologies
• Allow crea'vity, don’t control it – creaNve industry quality control; iREP, AFRIFF, AMVCA, AFRIMA, AMAA
Policies that Encourage Growth in Entertainment
Confidential 9
§ Exclusivity ü Incen've to innovate | drives compe''on
§ Anima:on
ü It’s a long 'me since the Muppet Show ü Japan market worth over 1.63 trillion yen by 2014
§ Tell new stories or find new ways to tell old stories
ü Kunle Afolayan’s “October 1” hit the top chart on DStv BoxOffice, out grossing Hollywood 'tles
§ Documentary filmmaking
ü Sound and light engineering
Diversifica:on
Confidential 10
§ Take 'me to structure your business ü The MulNChoice model
§ Capacity building
ü Pass on the torch
§ Do not expect immediate returns ü Rome was not built in a day
§ Cross-‐con'nental movie collabora'ons
ü Nollywood-‐Hollywood producNons § Innovate and evolve
ü DStv Now
Think Long Term
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