“A successful big budget Nollywood blockbuster movie grosses around 200 – 400 million naira ($570K – $1.1M) in Nigerian movie theaters, this does not include DVD sales, online streaming or theatrical screenings outside the country”
For those who don’t know, Nollywood is Nigeria’s version of Hollywood, Nollywood has evolved from its archaic state in the 90’s to now an industry that produces 1,500 plus movies a year — vastly more than Hollywood, and second in number only to India’s film industry, Bollywood.
According to Forbes magazine, Nollywood is now an $800 million industry. About 300,000 people are employed and it’s a big contributor to Nigeria’s GDP, the industry has been exploding in a good way with attention and red carpets events.
Netflix has caught on, Netflix is always looking to grow geographically and increase its subscription, so Nollywood has been a good content chain. Netflix started by supporting local Nigerian filmmakers to appeal to Africans in Sub-Saharan Africa and those in the diaspora. Netflix’s entrance is improving the quality movies made, the bar for quality storytelling is high and movie makers are ready to tell local stories that are relatable to an international audience.
It’s the worst kept secret, mostly because it’s not really a secret, that a low budget Nollywood movie can cost between 4-10 million naira ($11.5K – $28.5K). That’s roughly the same price as a Marvel movie would spend a day……….on catering. A big blockbuster budget Nollywood production can cost about 150 million naira ($430K) or more. You could make a big budget Nollywood movie, or you can buy a two-bedroom apartment downtown Chicago….that’s perspective.
Usually, low budget movies are distributed through DVDs and Video CDs. With the digital streaming boom, these movies are likely to make it to some streaming websites like irokoTV or a cable TV like African Magic. While big budget movies see distribution in Nigerian movie theaters, and after a 4-6 week movie theater run, the film will head for cable TV stations and web platforms such as Netflix.
A successful big budget blockbuster Nollywood movie grosses around 200 – 400 million naira ($570K – $1.1M) in movie theaters, which does not include DVD sales, online streaming or theatrical screenings outside the country. This revenue also doesn’t include bootlegs that are sometimes sold on the streets with photoshoped covers of the actors. According to the Premium Times, these are the highest-grossing Nigerian films of all time in Nigerian movie theaters:
Once the movies have completed their theatrical run, there is money to be made through online platforms. According to Stearsng.com, streaming companies such as IROKOtv can pay around 2 – 4 million naira ($5.7K – $11.1K) and according to Techcabal.com, Netflix reportedly pays between $5K – $70K per licensed African film.
At our household, we look forward to watching new Nollywood Netflix movie releases. We enjoy watching the movies most importantly because our daughters love them and can experience the culture through movies. Here are my Top 5 Nollywood movies on Netflix:
- King of Boys (I might consider this the best Nollywood movie of all time)
- Chief Daddy
- Lion Heart
- Wedding Party 1
- The CEO
Bonus: Sons of Caliphate (Underrated TV series)
Business opportunity for my entrepreneurs….
There is an opportunity to start a film distribution company (Nolly Films) in the US that specializes in the marketing and distribution of Nollywood movies to independent movie theaters in the US and Canada, this model already works for Bollywood movies. Nolly Films can target large African immigrant population cities such as Houston, NYC, Baltimore, DC, ATL, Chicago, LA etc.
Nolly Films will identify 1-2 independent movie theaters in these cities, partner with Nollywood directors to release big budget movies at the same time or shortly after they are released in Nigeria. Nolly Films will be responsible for administering a targeted marketing campaign.
Nolly Films generates revenue by receiving a large percentage of ticket sales, in which a royalty payment is made to the movie studio in Nigeria. Nolly Films can also generate income by developing a website that lists Nollywood movie showtimes across US and Canada.
P.S. Top Bollywood cinema releases average about $10m per film in US and Canadian movie theaters. This is sometimes more than the movie generates in India.
