Without Innovation, Cinema Operators Would Lose Huge Patronage-FDC

Nigerian cinema operators need to introduce  lots of innovation to bring back patronage, but the painful reality for the players is that they will share their market with streaming service platforms, according to Financial Derivatives Company.

Juliet Adenuga, Treasury Head, Financial Derivatives Company said this on Friday on the Arise News programme.

The impact of the pandemic on the entertainment industry has been very disastrous as the pandemic had to be curbed with social distancing and lockdown directives adopted by different governments.  

“The movie industry thrives with numbers and crowds of people and because of that it had its consequences on the whole economy,” said Adenuga.

But the lockdowns and social distancing rules led to total paralysis of the entertainment sector, according to Adenuga.

The  entertainment sector contracted by three per cent in full year 2020 thereby cancelling the gains of the 4.12per cent, 2.53 per cent  and 4.13 per cent growth recorded in 2019, 2018 and 2017 respectively.

“There was a total paralysis of the entertainment industry. It impacted on jobs,” she lamented.

She said different companies that benefited from the cinema value chains were highly affected with some winding up.

Other than social distancing, streaming services are becoming one of the greatest threats for cinema’s as most movies produced have been sold out to digital entertainment firms like IrokoTv, Multichoice and NETFLIX leading the board.

“I don’t see them (Cinemas) getting back to where they were. If there is going to be a recovery, it is going to be slow,” said the FDC Treasury Head.

She said a lot of competitions have come into the business, adding the likes of NETFLIX would give people the same service in the comfort of their homes.

Adenuga said, “The pandemic affected people’s pockets and they will be more produdent. If there is going to be a recovery, it can’t be so sudden.”

She projected recovery to begin by 2022 or 2023, which she said will be pegged on innovation in cinema offers.