According to the latest GDP report by the National Bureau of Statistics (NBS), the Motion Pictures, Sound recording and Music production industry (an industry under the Information and Communication sector) rebounded from -0.4% y/y in FY-2018 to +0.2% y/y in FY-2019. This was buoyed by the growth in revenue generated from the number of movies and music produced during the year.
Notably, the local music industry continues to dominate the home market and gained further remarkable ground abroad. However, the local film industry (Nollywood) continues to make attempts to measure-up with competition from the U.S. film industry (Hollywood). According to data from the Cinema Exhibitors Association of Nigeria, 15 Hollywood movies dominated the top20 movies viewed in cinemas across the country (Nigeria), grossing c. N3.0bn in 2019. Meanwhile, only 5 Nollywood movies made the top-20 list, grossing c. N688.6mn during the year.
Despite the apparent challenge of the high cost of production and piracy that continue to plague the industry, we expect the music and movies industry to expand further in 2020. This is on the back of increasing momentum from fee/subscription-based digital streaming platforms such as Netflix, iRoko, iTunes, Apple Music and Spotify, which is expected to buoy output from the sector. Specifically, we believe the music industry will continue to lead the sector’s growth as more Afrobeat artistes continue to gain global acceptance.
United Capital Plc Research