Cinema Business in Nigeria: More Money Making Opportunities Emerge

Cinema Business in Nigeria: More Money Making Opportunities Emerge

One way to know if an industry is performing well is through its ability to benefit its immediate environment. One of such industries is the cinema business industry. In Nigeria, the opportunities they provide for entrepreneurs and investors are massive. These entrepreneurs are not involved in the daily operations of the cinema that means they are not perpetually in the dominant areas of practice, such as exhibition, distribution or production of films, but in supporting services that enhance productivity.

Those in the know estimate the current manpower directly employed by Nigerian cinemas at 5,000 people. With an expected annual expansion rate of 20%, about 12 more digital cinemas will be added to the already existing 61 across the country, by the end of 2020. From the production and distribution angle, based on the slate of movies to be released in the coming year, one could anticipate a 25 % increase in box office revenue from the record $17 million of 2018.  (filmonedigest)

These indicators point towards a demand in the increased capacity for services connected with the industry, and thus, presents opportunities for new players to emerge.

Below are few of these services:

  • 3-D standee printing – At cinema foyers, the presence of gigantic 3-D standees for Hollywood films makes a clear statement about quality. Considering the rate at which Nollywood films are being released, there exists a huge opportunity to be exploited.

 

  • Logistics – With the rate of expansion ongoing in the industry, cinemas have to move building materials, equipment, work materials, food and other supplies. There is a huge vacuum to be filled in this area. However, reliability and efficiency are the factors to consider when keying into this opportunity.

 

  • Retail (production, branding, packaging and supply) – Several food manufacturers and vendors get their products rejected by cinemas, as a result of low-quality packaging. Also, most cinemas have had to rely on imported ingredients (e.g corn and margarine) due to the poor quality available in our local markets.

 

  • Event Management – More films released mean more premieres to be organized. There aren’t enough creative event managers, so the available few have virtually no competition.

 

  • Furniture-making & installation (theatre seats) – It costs a minimum of $100 to purchase, import and install the cheapest, single, ‘regular’ cinema seat. Considering the number of cinemas that have opened this year, over 2000 seats have been imported. Cinema owners would patronize a local manufacturer who can ensure quality.

 

  • Plastic recycling – Thousands of plastic pet bottles are discarded from cinemas every day. In an economy where manufacturing has been considered an escape route from hardship, exploiting this channel will be a genius move.

 

  • IT. – In an industry where automation clearly sets a standard in service delivery, there exists a huge market for local tech professionals to exploit.

 

  • Facilities management and maintenance – It takes so much expertise to efficiently manage and maintain the properties that house cinemas that operators prefer to outsource services. With more cinemas opening, the opportunity for professionals in this field is enormous.

 

  • Cinema equipment leasing – Being a capital-intensive business, most start-up cinemas are unable to afford essential equipment such as digital projectors, generators, servers and amplifiers. Investing in this space would be a brilliant step. (filmonedigest)

The list is inexhaustible and connects different sectors to the cinema industry; construction, marketing & public relations, information technology, manufacturing, retail, etc. Thus, the industry provides a niche environment for businesses to thrive and serves as a channel for the empowerment of local entrepreneurs (filmonedigest). By doing this the cinema also improves their goodwill amongst investors and the consumers of the cinema content because they’ve been able to receive the best experience from the cinema.

Compiled by Michael Osuji

Featured Image credit goes to filmone