Digital Broadcasting Africa Forum 2016 - CTO

1 Digital Broadcasting Africa Forum 2016 . Local Content Creation for Africa Presented By John Ugbe MD, MultiChoice Nigeria Confidential: Strategy & Business Development Group Confidential 1. Overview 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 from rebased 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 ($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.

2 Travers Confidential 2. Why Develop Local Content? 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 . Martin Scorsese could not have put it better when he said I have a desire to tell stories. And I am never quite satisfied.. Confidential 3. How to Develop Content 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 Confidential 4.

3 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 Confidential 5. Possible solutions 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 Confidential 6.

4 Great Case Studies! Nigeria The Nigerian government gave a $200m grant to the entertainment industry in 2010. 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 to 25% reduction if filming and post-production takes place in South Africa . Post-production expenditure must be (about $166 000) or above to qualify Canada 5 Funds for the Media and Entertainment industries - $ - 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 Confidential 7. Why does Digital Migration Matter? 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 Wazobia TV.

5 Broadcasters Opportunity to offer new services and generate more revenue Regulators Digital dividends Confidential 8. Digital Migration: How Ready are We? Preparation is half the job done We can learn a lot from the Kenya and Tanzania migrations 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 Confidential 9. Non-compliant TV screens will look like this post switch off . Confidential 10. Confidential 11. Thank You Confidential 12.