Fakoyejo OlalekanNigerian Deposit Money Banks (DMBs) have taken their rivalry beyond the financial sector, extending their fight for dominance and relevance to the movie industry in Nigeria.
It’s no news that banks are now diversifying their revenue source from core banking operations, spreading their net into other operations outside their central business like the Financial Technology (FinTech) market, Pension, amongst others.
But one sector people would ordinarily not expect to catch Nigerian banks betting on directly is the Nollywood industry, which is now enjoying the patronage of investment bankers looking to cash in on Africa’s leading movie industry.
Why are banks betting on Nollywood industry?
In November 2022, while giving a speech titled; ‘Nollywood, A Rising Pillar in Nigeria’s Socio-economic Development,’ the Managing Director and Chief Executive Officer of First Generation Mortgage Bank (FGMB), Young-Tobi Ekechi, estimated the worth of Nollywood at $6.4 billion.
Although this is far from that of Hollywood, as the U.S. film industry has a net worth of around $91.83 billion, according to New Vision Theatres in a report in March 2023.
Prime Business Africa notes that the huge difference in the financial value between the Nollywood and Hollywood industries indicates significant financial opportunities in Nigeria’s movie industry.
No wonder Netflix has invested about N9 billion into Nollywood between 2016 to 2022, based on details disclosed by the firm’s Director of Public Policy for Sub-Saharan Africa, Shola Sanni, in November 2022.
While there is no actual figure to cite for Amazon’s Prime Video’s investment in Nigeria, the firm’s Director of International Expansion, Josh McIvor, in August last year, said: “We’re delighted to be increasing our investment in Prime Video for customers in Nigeria, making it a truly localised experience.”
Considering the $85.43 billion valuation gap between Hollywood and Nollywood, which serves as a financial incentive for investors, and factoring the interests of foreign subscription-based streaming companies, it’s no wonder the banks are now betting on the local film industry.
Banks competing for Nollywood’s $85.43 billion financial opportunity
The banks are gradually testing the waters by establishing a web-based free-to-watch streaming media company on YouTube, rather than going all in by offering a paid-for subscription-based streaming service.
GTBank’s Ndani TV
Guaranty Trust (GT) Bank was the first deposit money bank to make inroads into Nollywood with the establishment of its media company, Ndani TV in 2012.
- GTBank has invested heavily in original movie scripts and casting of actors and actresses through Ndani TV, which led to the production of blockbuster YouTube films such as Rumor Has It, Skinny Girl in Transit, Game On, Oga Pastor and Schooled.
- These series are strictly owned by GTBank’s Ndani TV, with the majority of the episodes averaging 100,000 views, according to stats obtained from YouTube.
- Ndani TV, created on 20 February 2012, has over 525,000 non-paying subscribers, but the web-based channel has recorded 128.74 million total views in the last 11 years, making it the most successful media company owned by a bank in Nigeria.
- An estimate of the total income from the shows disclosed that Ndani TV has generated about $643,600 for GTBank.
RED TV by UBA
Next on the list is RED TV, a web-based media company owned by the United Bank for Africa (UBA), which was created three years after Ndani TV.
- In terms of numbers, RED TV is far behind when compared to Ndani TV, considering GTBank had a three-year start.
- Over 332,000 YouTube users have subscribed to RED TV for its entertainment content, which includes the famous series; The Men’s Club, Assistant Madams, Public Figure, Our Best Friend’s Wedding and Inspector K.
- These shows and more have garnered over 60.09 million views, attracting an average of over 100,000 eyeballs per episode.
- UBA has generated about $300,000 through the series and other entertainment shows that RED TV has offered its 332,000 subscribers and non-subscribers.
Accelerate TV by Access Bank
Access Bank has also followed in the footsteps of its rivals by establishing its own web-based media company called Accelerate TV.
- The financial company also invested heavily in original series and other entertainment content to milk the 8.15 million (Statista estimate for 2023) YouTube users in Nigeria and YouTube’s 2.1 billion monthly active global users (The Social Shepherd estimate 2023) to compete for the $85.43 billion untapped financial opportunity in Nigeria’s movie market.
- Access Bank invested in films like The Olive, Clinically Speaking, Just Friends, and its most popular show, Visa On Arrival, the only film to amass an average of 100,000 views per episode.
- The shows on Accelerate TV YouTube channel have generated a total of 36.58 million views and secured 195,000 subscribers, which has earned the media company about $182,900 since it was created on October 14, 2014.
- However, unlike Ndani TV and RED TV, Accelerate TV has begun a paid-for subscription service that will allow subscribers to unlock more Nollywood movies for N500 per month.
In an interview with Nollywood actor, Tolulope Odebunmi, he told Prime Business Africa correspondent that the influx of banks into the movie industry increases job opportunities for actors and actresses.
He also stated that the investment banks betting on Nollywood will provide well-funded and high-quality movies, “I see it has a good development it provides work and most are well funded and the quality of jobs are good,” Odebunmi said.
Odebunmi, who has acted in Half of a Yellow Sun and Skinny Girl In Transit, a web-based movie owned by Ndani TV, added that banks’ involvement in the movie industry will enable Nollywood “reach more of our local audience,” the actor noted.
Banks also pocketing revenue from YouTube thanks to Nollywood
A Webmaster, Seun Shotonwa, told PBA that movie streaming channels easily qualify for YouTube Partner Program (YPP), which enables content providers like Ndani TV, RED TV and Accelerate TV on YouTube to get paid for the content they provide on the streaming platform.
YouTube Partner Program pays at least $5 for every 1000 views recorded by videos on the streaming platform, especially long-form clips, which the banks are offering.
Recall that GTBank’s Ndani TV has earned over an estimated $643,600, UBA’s RED TV is projected to have generated over $300,000 and Accelerate TV by Access Bank has an estimated turnover of over $182,900.
“They (movie channels) actually do, they quickly qualify for ypp YouTube partnership program. But how many people have the resources to make movies,” Shotonwa said, adding, “There are people who makes very high per mille, there are people who makes less. Sometimes, the longer you make people stay on YouTube, the bigger your pay.”
Also, another webmaster, Tunde Ashaolu, confirmed the payment process, stating: “It depends on where you are getting views from. If its from Nigerian viewers it can be as small as $5 per 1k views.
“If its us and europe views it is more. It also depends on clicks on ads,” he told Prime Business Africa.
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