Watch out Bollywood

Which country produces the largest number of films every year ? The answer is easy - India, some 1300 films in all. Which country is the second largest producer of films ? You might scratch your head or have guessed Hollywood. Wrong. The reality is Nigeria. Watch out Bollywood; Nollywood is all set to overtake you.

The Nigerian film industry is apparently thriving and booming. Its the film capital for all of Africa. Some 1000 films are apparently made each year. Unlike the more traditional format of movie halls, Nigerian films are mostly released on videos - there's hardly much of the theatre format in Nigeria and almost all of Africa. Each video costs some US$ 2 or so - cheap enough to be affordable and not worth counterfeiting. The distribution channel is therefore by retail stores for home viewing. No doubt, cheap video parlours would have sprung up for those unable to own a video player.

The industry is still small - Only some $250m or so. But with enormous potential. Africa is under served by entertainment. Movies are a great way to bring some cheer to  people - as India has so amply demonstrated. A peculiarly African solution has emerged. A distribution system and a pricing methodology that suits the market. Videos rather than hall screenings. 

India is virtually saturated by movies. I read that an astounding 3.2 bn cinema admissions happen in a year in India. That's an average viewing of 3 films per year per person. Amazing. I know that such a number is laughably low for movie buffs such as  Zeno, but you must also count that there are worthies like me with a viewing habit of precisely zero. How much more can India grow - not much. Whereas in Africa, the market is still virgin.

Gils has some competition here. At this site you can read reviews of Nollywood movies. At this site you can even watch them. They seem to have a tendency to raunchiness in their titles - "Obama Babes" goes a movie title. "Ladies Gang" goes another. Before you get any ideas, these are not that sort of a movie - they seem to be more of the serials type of stuff that are inflicted on the unsuspecting public world over.

I might be even tempted to watch one of them and write a review !!!!!

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How come Bollywood is so small ?

Bollywood is world famous. Every Indian is mad about films and its a defining aspect of Indian culture. Indian films are now being known world over. India makes the largest number of movies in the world. Apart from Hindi films, there is a thriving film industry in many Indian languages. This must be a huge industry right?

Wrong. The entire Indian film industry size is just $ 2.2 bn. Just 60% of Infosys. One tenth the size of Reliance. The entire industry. That's it. Read the FICCI KPMG report for all the gory details.

Most films lose money. And for its tiny size, its expected to grow only 9% next year after a flat last year. Sounds like a dog industry.

How come ? Surely there's something wrong. You have one billion crazy Indians all wanting to imitate Shahrukh Khan or Aishwarya Rai. Not to speak of the rest of the world where lots want to learn "Bollywood dancing". Terrific talent in singing, dancing, acting amongst the Indians - just go to any college or company function. Fanatic demand. Great talent supply. And yet a tiny industry.

Why ? I am a self confessed ignoramus on Indian movies - haven't watched one for a few years. That won't stop me from speculating (that's the nice thing about blogging - you can wax eloquently on things you don't have a clue about) !

• The size is probably understated as the industry is not all above board. But even at 2 or 3 times the stated number, its still a tiny industry.


• Its highly unprofessional. A lot of financing is by the underworld and professional management just does not exist.


• Marketing is an unknown function. There's no merchandising at all (how many Lagaan cricket bats have you seen ?)


• Its not really sold globally. Whatever is taken global is for the expat Indian audience. Actually the films, with their song and dance, does have universal appeal.


• There's zero market research. Do the producers really understand their customer - what do they want ? What are the market segments - the bhaiyya watches completely different stuff from the aunty.


• Much of the product is garbage. That's why most films lose money - they are trash and deserve to lose money.

The industry has a larger than life image, but in reality its a mouse. There's a lot of noise, but little to shout about.

Corporate India - get on to the movie industry.

Now that's a thought. Won't you want to work in a company where you see Aishwarya on Monday, Kareena on Tuesday, Priyanka on Wednesday ......

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