When Tolulope Omole, a Health and Safety expert, visited Ikeja City Mall’s Silverbird Cinema to see ‘No Time to Die 007’, two days after the movie hit the cinemas in Nigeria, his expectation was that the movie hall will be at least half-filled. Not only because it is the latest of the James Bond franchise, but also due to the hype around the movie. But Omole’s bubble burst, when he entered the over 100-seater 4D theatre with his wife on a Saturday evening.
He said, “I could not believe my eyes when I entered the hall about 20 minutes into the movie, as the hall had only less than 20 viewers. Initially, I thought others will join us and my hope was dashed, as only two people joined us at the end of the movie.
“I pity the management of the cinema and others witnessing the same thing, as most times they are forced to run the business at a loss wasting fuel and other resources for very few viewerships. I can’t imagine how much they all spend to run the business while viewers are either scared of seeing movies in public spaces or have already moved on with online movies streamers like Netflix and others.”
Read: How Netflix, others’ operations affect ours – Cinema operators
Adetola Oni, a chartered accountant with one of the Nigerian food conglomerates in Lagos, is another cinema addict that is already having a rethink of what used to be a habit pre-COVID-19 era. According to him, he goes to cinemas at least two times a month with his family, as he uses the opportunity to bond with the family, friends and clients.
He said, “I could never compare going to cinemas with watching movies on Netflix, since I see it as an opportunity to spend time with my family and friends. Some people may believe I am ‘old school’ when I argue that technology is good but comes with its own challenges. There is nothing wrong in watching movies at the comfort of your home but going to see movies gives the opportunity of meeting old and new friends.
“But my experience in the last six months at ICM and Silverbird Galleria has not been exciting. Most times either during weekends or weekdays, the halls are only 10% filled and I begin to wonder how the operators cope.
“If this persists in 2022, I can assure you that over 50% of the cinemas will shut down because they won’t be able to repeat the losses they recorded this year in the next year. Except a miracle happens, all of them may be forced to shut down in 2022 and that will be an end to one of our cultural values.”
Read: Nigerian cinemas count loses in Q1 2020, amid COVID-19 lockdown
Omole and Oni are only two out of hundreds of Cinema patrons that have observed the sharp drop in the clientele base of the Cinemas across Nigeria.
Nairametrics’ findings also confirmed the observations of the patrons, who spoke with us in separate interviews. Our analysts’ visit to the cinemas in ICM Ikeja; Silverbird Galleria on Victoria Island and Jara Mall along Simbiat Abiola way, Ikeja among others confirmed that there has been a drastic decrease in the number of patrons at the cinemas.
“Unlike what it used to be before COVID-19 pandemic, most times I will be the only one watching a movie at the Viva Cinema during off-peak period (before close of business on weekdays) and probably about 14 or less during peak periods. This is an indication that the industry is on the brink of collapse,” another observer lamented.
What the figures are saying about patronage
Findings also revealed that Nigerians across major cities spent only about N550.53 million on Top 20 movies at several cinemas across the country at the end of the first half of 2021 (this is the latest data available). This is against the N3.730 billion spent on weekends only on Top 20 movies in cinemas across Nigeria in 2019.
This was disclosed in the data obtained by Nairametrics from the Cinema Exhibitors Association of Nigeria (CEAN).
What cinema operators are saying about the downside
The Chairman, CEAN, Patrick Lee, had lamented over the present state of the segment of the entertainment industry. According to him, the lockdown had a depressing impact on the operators of cinemas, as six of the cinema exhibitors in the country were facing the possibility of bankruptcy.
Lee, who is also the General Manager of Ozone Cinemas, said, “Six of the cinema exhibitors in the country are facing the possibility of bankruptcy. We are talking to the government and hoping that they will support us to keep our heads above the waters.
“We are assuring government and the audience that we have a safe environment. We are working with all the stakeholders to ensure that the cinemas are safe.”
Co-founder of Filmhouse Cinemas and FilmOne Distribution and Production Company, who is also the Secretary of CEAN, Moses Babatope, explained that the five-month lockdown made things difficult for operators, as the impact on cinema businesses started at the beginning of 2020.
“Traditionally, January slows down after December heavy spending and for us in the cinema sector, December is usually a good period for our businesses but things are not looking good due to low patronage. Some of our critical infrastructures have been affected, as it has really been challenging and very painful.”
While CEAN is mute in the total amount lost to the low patronage as at end of November 2021, a source close to the management of the group told Nairametrics that over N70 billion has been lost to the development.
He said, “Aside from job losses, the industry has lost over N70 billion and still counting in 2021. We will soon release a report on the total amount lost to the low patronage but I am sure it can’t be less than that.
“Already, greater number of exhibitors will shut down by the first quarter of 2022 because it is no longer profitable to show movies people are not watching. We have pleaded for support from the government but no one is listening.”
Bottomline
The growth of the cinema culture in Nigeria is a significant advantage for Nollywood movie producers, who in the past have lost revenue to piracy. But the cinemas’ growth has been threatened by the operations of Video-On-Demand (VoD) services like Netflix and iRoko streaming platforms, especially after COVID-19 pandemic struck.
How long this will persist depends on how well operators can strike better deals with movie producers, who are also being poached by tech investors (owners of VoDs) to create content for their platforms, offering higher financial gains.
