Film distribution in Nigeria and ancillary sales

A wise man once said, “if you fail to plan, you plan to fail”. Just like every business project in which detailed planning and organization is key to achieving success, the business of filmmaking is equally (or more) intricate. The process follows this chain: Film Financing, Pre Production, Production, Post Production, and Film Distribution. After the troubles and hassles of film production comes the herculean task of film distribution.

Film distribution is the process of making a movie available for viewing by the public. Sounds simple and basic, right?  However, that’s far from it. A film distributor determines the success or failure of a film through its actions or inactions. The distributor determines the marketing strategy for the film, the medium or platform in which the film is to be exhibited, the media format by which a film is to be exhibited or made available for viewing, and the release date of the film. These simple but key decisions go a long way in determining whether a film becomes a Box Office Hit or not.

The distributor decides whether the film should be exhibited directly to the public either through the cinemas or movie theatre, cable or terrestrial television, Internet-based Video on Demand etc. To fully exploit a feature film commercially, film promotion is incidental to film distribution. The length and scale of promotion creates awareness for the film, which leads to engagement and subsequently, ensures higher revenue.

In Nigeria, a film maker or film producer, as they are fondly referred to, engages a film distributor for the sole purpose of distributing the film. The film is screened by the distributor for classification and “appropriateness” before the National Film and Video Censors Board (NFVCB) who decide on the age rating for the film.

The distributor proceeds to set a release date for the film albeit with the acceptance of the film by the exhibitors. The distributor also enters into exhibition agreements with the exhibitors (cinema chains) in which revenue from ticket sales are shared either via a fixed ratio or a sliding scale ratio (based on the performance of the film).

The distributor decides on what advertising material should be created and how they should be utilized. Be it the in-cinema materials consisting of flyers, standees and cut-outs or newspaper, billboard and radio adverts. The film distributor basically does the absolute most to ensure an increase in revenue.

It is no coincidence that FilmOne distribution is the foremost distribution company in Nigeria as they are the go-to company for film distribution due to their effectiveness and efficiency which has reflected in the Gross Box Office results of their films. In the current Top 5 Highest grossing Nollywood films till date, the company has distributed 4/5 of the films (this should be 5/5 when The Wedding Party 2 is released this December). At this point, the other seemingly ’major’ distribution companies, evidently need to go back to the drawing board for a masterclass and fresher session.

Due to the quantity and the improving quality of Nollywood films, the average life span of a film in Nigerian cinema is four to five weeks.  In creating the release and distribution strategy, a distribution company draws up the “Release Window”.  Release Window is a term used to describe the time period a certain type of media is allowed to screen your film.

Traditionally, a feature film is first released in cinemas/theatres, and then media platforms which include DVD pay-per-view/Video-on-Demand (VOD), broadcast TV and festival screenings.  These media platforms are commonly referred to as ancillary sales platforms.

Ancillary sales platforms are monetization avenues for film producers and film distributors who look to generate more revenue for their films, the distributor aggregates and distributes for the producer on these platforms after the expiration of the cinema/theatrical run. This enables exploring other territories and audience for easy accessibility of the film. Ancillary deals are mostly for a minimum term of 24 months, which affords the producer and distributor revenue in form of royalties long after the theatrical exhibition of the film.

Film Distribution in Nigeria obviously has a long way to go in terms of perfection, but the efforts by the distributors is not going unnoticed. The influx of skilled practitioners and experts would raise the stakes in the industry and contribute to high revenues for all practitioners.

Written by Ife Idowu.

Ife Idowu is an urbane lawyer with specific interests in Corporate, Entertainment and Intellectual Property Law. He is also a content writer and an entertainment enthusiast who constantly functions as a social engineer creating innovative solutions.    Connect with Ife via:  E-mail: ifeidowuofficial@gmail.com  Twitter: @ife_id_