Brand Insight: Intervention Strategies By John Ugbe, MD Multichoice Nigeria | #NECLIVE4
MANAGING DIRECTOR, MULTICHOICE NIGERIA, JOHN UGBE shares some INTERVENTION STRATEGIES that would make entertainment industry become a key contributor to Nigeria’s economic growth and development. By Melvin Udosen and Azeez Disu
The glamour, the fun and excitement that music, films and others entertainment shows have brought to many homes cannot be quantified. Entertainment has over the years proved to be the best friend and companion anyone can have, from the state of depression or stress, good music lifts the mood, joy and strength gradually returns. Same with good film and television programmes, loneliness is quickly submerged with companionship. You feel the presence of the actors and actresses right before you, you laugh, you smile, at times tears drop.
With all the wonders of entertainment, it is still confronted with a lot of challenges that need urgent intervention, the intervention many believe will create a boom in Nigeria’s economy and Africa at large.
The Roadblocks
Entertainment currently contributes approximately 2.5% to Nigeria’s Gross Domestic Product (GDP), an equivalent of N9 Trillion in total earnings; despite this height experts believe that the industry has not fully achieved its true potential.
Meanwhile, 2face, Dbanj, Wizkid, Olamide, Falz, Tiwa Savage, Timi Dakolo, Omawumi, Uti Nwachukwu, Ebuka Uchendu, Kunle Afolayan, Eku Edewor, and host of others have proved to the world that Nigerians have great musical and artistic talents, all thanks to Channel O, Africa Magic Viewers’ Choice Awards (AMVCA), West African Idol, Big Brother Nigeria/Africa, The Voice Nigeria and other MultiChoice’s Programmes and platforms on DStv and GOtv.
Sadly, Privacy, Dearth of skills; inadequate Infrastructure, poor funding, poor distribution system, and lack of structure continue to dwindle the contribution of the entertainment industry to the GDP. A recent study revealed that there are 8 pirated works to two original works out of every ten works you find in the market.
Yearly, billions of US dollars of the industry wealth are lost to Piracy. Entertainers are left with the little choice of living on the meagre returns from the sale of their original copies.
Managing Director, MultiChoice Nigeria, John Ugbe is not pleased with this development, he disclosed that “Privacy is the bane of the Creative industry”, he therefore urged stakeholders to urgently find a lasting solution to the menace.
Ugbe pointed out that Nigerian artistes are imbued with the natural skills to excel but inadequate resources; studios and production facilities; and funding are some of the factors dashing their hope of succeeding in the industry.
What Have Others Done?
In the United States, the entertainment Industry contributes about 6% to the economy, and this is valued at about $700 billion, Nigeria contributes far less. “Our contributions seem small in comparison, but there is massive potential for improvement” Ugbe said.
He revealed further that Canada has 5 Funds for the Media and Entertainment industries worth $1.6Bn. The CFFF is about 49% equity or 49% recoupable advance in a feature film and its Tax Credits is 25% of Labour and up to 15% of total costs.
Similarly, South Africa gives 20% tax reduction on production expenditure for foreign productions filmed in South Africa with a budget of R12-million (about $1, 3-million) or above. Also, a 22.5% to 25% reduction if filming and post-production takes place in South Africa. Post-production expenditure must be R1, 5-million (about $166000) or above to qualify. The story is different in Nigeria, she gave $3.3bn in tax breaks to the Oil & Gas sector in 10 years while the entertainment industry received $200million grant in 2010.
Why MultiChoice is Intervening
Ugbe made known that MultiChoice’s contribution to the Nigerian economy from 2011/2012 till 2014/2015 is estimated to be N1.5 trillion ($796.8m) while it promises to do more.
He explained that affirming Nigeria’s leadership position in music and movies on the continent, creating jobs, development of the market were some of the reasons why his company intervened in the industry.
Between 2009 and 2014, Nollywood produced well over 5,000 titles, 80% of which were acquired by the Africa Magic channels, thus giving Nollywood a bigger platform than any other sole broadcaster.
Also, in 2013 alone, MultiChoice launched 13 fantastic new channels on the DStv platform, which include three M-Net Series Channels, M-Net Movies Zone, Fox, Ebony Life, Telemundo, Hip TV, Spice TV, CBS Action, CBS Drama, JimJam and MGM. These platforms give Entertainers the opportunity to showcase their potentials internationally.
In the same vein, MultiChoice’s Africa Magic Viewers’ Choice Awards (AMVCA), a recognition of excellence and outstanding achievement in television and film, has enhanced creativity, quality production, and professionalism, as winners are picked by the general public through votes.
Ugbe stressed that MultiChoice has been in the forefront of the promotion of local television content that promotes family values, in Nigeria with over N15.5billion investment in local productions.
“We have gone to great lengths to customize our services for the Nigerian market. This is why we have commissioned a range of top content from our channel providers like Doctors Quarters, Edge of Paradise, Big Brother Nigeria, Gladiators, Money Drop Nigeria, Tinsel, Jara, Studio 53, NFL, DStv Basketball league, Fashion Protégé, AfricaMagic Original Films.
Policies that Encourage Growth
Ugbe is optimistic that diversifying the entertainment industry into areas like Animation, Documentary Filmmaking, and telling new stories or finding new ways to tell old stories at this time is critical, especially with the downturn in the country’s economy due to drop in Oil revenue.
He pointed out that more jobs would be created; and more forex would also be earned when creative works are exported. For this to happen, he hinted that friendly business environment must be in place “We must fix our distribution value chain, leverage on new digital technologies” he said this at the fourth Nigerian Entertainment Conference 2016 held in Lagos.
He added that strong regulatory and legal framework through effective copyright protection law would make creative materials or projects secure from theft. More so, he urged the government to intervene in the area of funding and grants, while the banks should help with loans, these he explained would help solve the challenges of acquiring quality production equipment and catering for other logistics. Like the success in Canada and South Africa, he advocated for Tax credit, this he emphasized would help the entertainers find their feet.
On a successful note, Ugbe revealed that Kunle Afolayan’s film “October 1” which was released 2014; hit the top chart, out grossing Hollywood titles on DStv BoxOffice. He urged entertainers to take a leaf from Afolayan’s film by telling new stories or finding new ways to tell old stories.
Among others, he said a friendly business structure, capacity building, and cross-continental movie collaboration like Nollywood-Hollywood productions would encourage the growth of the industry.
Multichoice Nigeria, Managing Director, Mr. John Ugbe Covers Brandessence Magazine Latest Issue: Download Brandessence Magazine Latest Edition, Click Here
