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  

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•  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  

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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      

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§  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  

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§  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    

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§  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?  

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•  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  

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•  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  

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§  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  

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§  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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And  Finally…  

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