Managing Director Multichoice Nigeria, John Ugbe was present at Nigerian Entertainment Conference 2016. John kicked off the final session of the conference to speak on ‘Intervention strategies: An Open conversation and case studies’, he was joined by some of Nigeria’s brightest minds in music, film, media and tech.

1. 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

2. Confidential 2
• 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

3. Confidential 3
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

4. Confidential 4
§ 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

5. Confidential 5
§ 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

6. Confidential 6
§ 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?

7. Confidential 7
• 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

8. Confidential 8
• 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

9. Confidential 9
§ 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

10. Confidential 10
§ 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

11. Confidential 11
And
Finally…

12. Confidential: Strategy & Business Development Group 12