Industry analysts assert that enhancing the theatrical sector and broadening distribution channels will be crucial for Nollywood's advancement in 2025. Furthermore, government initiatives supporting community cinemas in rural regions are expected to improve the industry's accessibility and profitability.
The streaming environment for Nollywood underwent significant changes in 2024. Prime Video scaled back its investment in African and Middle Eastern projects, which has restricted the commissioning of new Nigerian content. In contrast, Showmax reintroduced itself with an emphasis on original African productions, while Netflix announced it would cease commissioning Nigerian films but would continue to license them.
These developments underscore the shifting dynamics between Nollywood and streaming services. Other significant trends include Nile Media Entertainment's foray into cross-regional distribution, the government's community cinema initiative, and the growing prominence of YouTube as a platform for film releases.
2025 Outlook
Experts in the industry indicate that cinema revenue will be pivotal to Nollywood's achievements in 2025. In 2024, Nigerian cinemas generated N11.5 billion from film releases, propelled by hits like ‘Everybody Loves Jenifa,’ which alone earned N2.8 billion.
Mautin Tairu, a Nollywood talent manager, stated: “Given the exit of Amazon Prime and Netflix’s content acquisition strategy change, there has been a significant improvement in cinema attendance and revenue generated.
“With Nollywood being the second largest industry in production value, I predict an upward trajectory, and this is backed by NBS and PWC reports that the Nigerian creative industry, with Nollywood as a focal point, will contribute greatly to GDP in 2025. I believe this is true because there is a rising demand for our content, and there will be a rising number of exportable films produced in 2025.”
Offering Basket co-founder Ojie Imoloame highlighted the significant growth potential within the theatrical sector, forecasting increased cinema attendance and a renewed emphasis on effective film distribution strategies.
The government’s initiative for 2024 to eliminate licensing fees for community cinema investors was highlighted as a potential catalyst for increasing cinema revenue across the country.
Nevertheless, experts assert that Nollywood must establish additional peak periods to achieve greater success. December consistently stands out as the month that generates the highest box office revenues, with FilmOne reporting that it brought in N2.8 billion in 2024.
Imoloame underscored the necessity of developing more peak revenue periods beyond the December holiday season. He proposed that the industry should devise strategies to replicate this success during Easter and summer, thereby ensuring sustained high earnings throughout the year.
Tairu, previously quoted, stressed the significance of understanding the varied audience for each film, which can be accomplished by recognizing their needs and preferences. This insight enables filmmakers to customize their marketing strategies and release schedules, taking advantage of other peak periods such as Easter and summer holidays.
He advised on the importance of pre-planning release dates and implementing coordinated marketing campaigns to build anticipation. Additionally, he recommended allocating at least 30 percent of the film budget to marketing to secure a solid return on investment. Tairu emphasized the critical nature of executing marketing strategies meticulously, leveraging data insights to ensure that the film at least breaks even at the box office.
Global Expansion and International Reach
James Amuta, a prominent filmmaker in Nollywood, expressed his concerns regarding the industry's ability to penetrate global markets following Netflix's withdrawal of funding. He questioned whether Nollywood films are capable of generating sufficient revenue from theaters in Europe, North America, and Latin America.
Funke Akindele’s film ‘Everybody Loves Jenifa’ achieved a significant milestone by becoming the first indigenous Nollywood production to earn over $327,000 internationally within just 22 days. Other notable Nollywood films, such as Omoni Oboli’s ‘Wives on Strike: The Uprising’ and Ayo Makun’s ‘The Waiter,’ have also successfully secured international distribution.
With major Nollywood titles like ‘King of Boys 3: The Beginning of the End’ set to release in December 2025, projections indicate that diaspora earnings could reach $600,000 if distribution efforts are expanded to additional countries and cinemas.
Amuta highlighted the necessity of creating high-profile films that appeal to international audiences, emphasizing the importance of reaching beyond streaming platforms to enhance Nollywood’s global presence.
YouTube and Streaming
In light of Netflix and Amazon Prime's funding pullback, Imoloame, previously quoted, urged local streaming platforms to seize this opportunity by intensifying their promotional efforts. He proposed that these platforms could target up to a million subscribers, capitalizing on Nigeria’s increasing internet accessibility.
As of July 2024, Nigeria boasted approximately 134 million mobile internet subscriptions, with broadband penetration at 42.24 percent. Imoloame views this as a prime opportunity for local streaming services to flourish.
Experts also recognize the rising significance of YouTube for Nollywood filmmakers. The platform has emerged as a means to generate additional revenue, circumventing the challenges associated with traditional cinema distribution and securing licensing agreements with streaming services. Filmmakers like Kunle Afolayan have adopted YouTube as a practical avenue for film releases and diversifying their income sources.
Femi Odugbemi, a prominent filmmaker from Nigeria, conveyed a positive outlook regarding the future of the industry. He pointed out that, for the first time, the regulatory agencies within Nigeria's creative sector are headed by professionals with a well-defined vision. Additionally, he emphasized that although financial support is vital, factors such as innovation, collaboration, and the establishment of sustainable institutions are also essential for the success of Nollywood.