Microsoft Word - Achieving the promise of african cultural e

The predominance of informal viewing and the absence of product placement and merchandising strategy limit the revenue perspective for the industry . Given the fact that 99 percent of screenings are in informal setting due to the almost inexistence of movie theatre outside major cities, it is not surprising that Box office revenues are marginal in Nigeria. Indeed usually films are broadcasted in informal Video Parlors through the country. Video Parlors are small huts or barracks where local entrepreneurs buy a TV set and VCR or DVD player, and plays the film for a small fee. According to NFVCB, there are 6,8412 Video Parlor registered in the country and estimated 200,000 unofficial parlors. In Hollywood tickets sales account for 20 percent of the studio’s revenue and home entertainment, merchandising and product placement provide 80 percent of the industry revenues. Indeed the profit reality has transformed the way Hollywood operates and theatrical releases now essentially serve as launching platforms for videos, DVDs, network TV, pay TV, games, and a host of other products.

Figure 12 : The difficulties for Nollywood to capture movies revenue

19