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.

Looking Ahead: While the outlook for the Nigerian cinema industry appears positive, challenges persist. The aforementioned correlation between ticket prices and attendance needs to be carefully monitored. Additionally, factors like piracy and content quality remain areas for continuous improvement.

Our mission is to empower businesses with actionable insights through comprehensive data analysis and strategic research, with a focus on innovation and excellence.


Quick Links


BusinessDay Intelligence

© Copyright 2024. BusinessDay Intelligence