July revenue from cinemas in Nigeria was put at ₦482million, which is impressive when placed in the context of economic headwinds that heralded the current administration. Age-long subsidy on premium motor spirit was cancelled, accompanied by a sharp devaluation of the naira, leading to spiraling costs of goods and services. Nigerians, it appears, found solace at cinemas.

Mr. Opeyemi Ajayi, National Chairman of Cinema Exhibitors Association of Nigeria (CEAN), said total viewer admission in cinemas across the country in July was 218,395. He attributed the growth in numbers to the several holidays last month, which were opportunities for Nigerians to engage in leisure activities. “The cinemas are not doing bad(ly) but we encourage more Nigerians to cultivate the habit of visiting the cinemas,” he added. These numbers, however, are puny compared to the subscribers streaming movies in Nigeria, the income earned by streaming services and their potential growth. With internet penetration and smartphone ownership growing rapidly across the country, streaming is expected to keep shading cinemas and cable TV.

Data company Statista, in its Digital Market Survey, estimated video streaming segment would earn ₦360billion (US$468.10million), with an annual growth rate of 14.11 percent, resulting in a projected market volume of ₦696.1billion ($905.7million) by 2027. The market has expectedly reacted positively to where the money is. Major Nollywood producers have set their sights on creating great flicks that meet the high standards set by streaming platforms Netflix and Amazon Prime Video. This contrasts sharply with the regular fare available on cable TV.

With Nigeria’s growing internet penetration and availability of affordable smartphones, streaming services are expected to post even stronger growth in the years ahead, as they are not encumbered by lack of electricity and cost of setting up cable TV connections, or indeed, cinema tickets.

Meiza Nigeria