Confidential: Strategy & Business Development Group Confidential 1

Presented By

John Ugbe MD, MultiChoice Nigeria

Digital Broadcasting Africa Forum 2016 Local Content Creation for Africa

11.05.2016

Confidential 2

Local content creation in Africa undergoing an aggressive growth spurt

Nigerian film industry is the most vibrant in terms of volume, contributing

an equivalent of N9 trillion ($45m) total earnings as part of the

entertainment industry

GDP contribution at 2.5% from rebased 1.4%

It also has the greatest potential for growth in Africa

Churns out about 200 movies monthly

2nd largest employer of labour, providing 1m jobs with capacity to provide 2m

jobs and more

South African film industry contributes approximately R3.5bn ($230m) to

the country’s GDP according to government’s figures

Has created more than 35,000 jobs

Immense growth from 4,000 in 1995 Travers

Overview

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To preserve our culture

Show the richness of our culture

Yoruba, Hausa and Igbo for now

Tell our own stories

Locally and internationally

Creates an opportunity to earn forex

To create jobs and develop the economy

To change perceptions about Nigeria & Africa as a whole

To improve the art of film making using modern technology

Movie remakes…

Why Develop Local Content?

Martin Scorsese could not have put it better when he said – “I have a desire to tell stories. And I am never quite satisfied.”

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Remember, everyone starts small…long term investments need time to grow.

You must have a story to tell

Select a story

Write the screen play/script

You have to plan

Hire your cast and crew

Select your location and build your set

Produce the film

The film is shot

Editing

Images and sound are edited

Visual effects are included

Distribution

The film is released into cinemas, then BoxOffice, DVDs, Pay TV and then terrestrial television

How to Develop Content

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Challenges

Piracy

Stifles creativity

Funding

Dearth of quality content

Switchover will create multiple channels – risk of monotony

Dearth of skills

Our artistes are imbued with the natural skills to excel

however…

Infrastructure

Inadequate resources; studios and production facilities

Finding an audience

Quality of work

Channels for exposure (sure to grow with the migration)

Distribution

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Government

Funds and Grants – increase supply and reduce costs

Subsidies

Tax credits

Infrastructure – Cowork and impact on the programmers

Private sector

Bank loans

Sponsorships – Branded content etc.

Commissioning

What have we done

Market creation

Platform to showcase internationally

Funding through commissioning and buying

Capacity building through workshops and own productions

Fighting piracy

Possible solutions

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South Africa

The incentive for local moviemakers offers a 35% rebate for the first R6m (about

$662 000) spent, and 25% for the remainder of production expenditure.

A 22.5% to 25% reduction if filming and post-production takes place in South

Africa. Post-production expenditure must be R1.5m (about $166 000) or above to

qualify

Great Case Studies!

Nigeria

The Nigerian government gave a $200m grant to the entertainment industry in

2010

Canada

5 Funds for the Media and Entertainment industries - $1.6bn

- The CFFF – about 49% equity or 49% recoupable advance in a

feature film

Tax credits – 25% of Labour and up to 15% of total costs

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Benefits of digital migration…

Viewers

Increased capacity – more channels

Better picture and sound quality

Extended signal coverage area – more people across the

country can view the same television programmes e.g.

Wazobia TV

Broadcasters

Opportunity to offer new services and generate more revenue

Regulators

Digital dividends

Why does Digital Migration Matter?

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…in terms of readiness

Government

To subsidize set top boxes

Switch on has occurred in Jos

Switch over deadline; June 2017

MultiChoice

DStv - digital from inception

Indigenous language channels – The AfricaMagic channels

GOtv - set up in 2011 as a mass market product that will assist in meeting the digitization

deadline

GOtv is digital!

GOtv currently has footprints in 24 states of the federation

Digital Migration: How Ready are We?

Preparation is half the job done

We can learn a lot from the Kenya and Tanzania migrations

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Non-compliant TV screens will look like this post switch off…

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Confidential 12

Thank You