Nigerian cinemas see revenue boom, but can they fill the seats?
Nigeria’s cinema industry witnessed a mixed bag in the first quarter of 2024. According to a report by Filmone Entertainment, an independent film distribution and production company, the box office’s revenue experienced a year-on-year increase despite declining cinema admissions.
Revenue growth outpaces attendance
The report, titled “Nigerian Box Office Year Book for 2023,” revealed a positive trend in revenue generation. Total box office takings for Q1 2024 reached N2.25 billion, a remarkable 46% improvement compared to N1.54 billion recorded in the same period of 2023.
This growth can be attributed, at least partially, to a significant rise in ticket prices. The average cost of a cinema ticket jumped by 52% year-on-year, reaching N3,765 in Q1 2024 compared to N2,479 in 2023.
However, the positive revenue story is countered by a slight dip in attendance. Cinemas welcomed 596,609 patrons in Q1 2024, a 4% decrease from the 620,477 recorded in Q1 2023. This highlights a negative correlation between ticket prices and admissions, suggesting that the price hike may be deterring some moviegoers.
The first quarter of 2024 also witnessed a healthy influx of new content, with a total of 40 new titles released in Nigerian cinemas, excluding spillovers from previous quarters. This indicates a continued commitment from filmmakers and studios to cater to the diverse tastes of Nigerian audiences.
The big picture
Looking beyond Q1, the report paints a promising picture for the rest of 2024. FilmOne projects a strong year for the Nigerian cinema industry, anticipating a box office revenue of N10 billion and a total of 2.6 million admissions. This optimistic outlook is fueled by several key factors:
Expansion of cinema infrastructure:
The ongoing development of new cinemas is expected to increase accessibility and attract a wider audience. The report highlights an increase in the number of cinemas from 75 in 2022 to 90 in 2024, with a corresponding rise in screens from 275 to 300.
Growing middle class:
Nigeria’s expanding middle class represents a significant demographic with rising disposable income, potentially leading to a larger pool of potential moviegoers.
Foreign investment boost:
Increased foreign investment in Nollywood productions is anticipated to elevate production quality and potentially attract a wider international audience.
Premium format growth:
The report also cites the growing availability of premium cinema formats as a factor that could entice audiences seeking an enhanced moviegoing experience.
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