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The predominance of informal viewing and the absence of product placement and
merchandising strategy limit the revenue perspective for the industry
. Given the fact that
99 percent of screenings are in informal setting due to the almost inexistence of movie
theatre outside major cities, it is not surprising that Box office revenues are marginal in
Nigeria. Indeed usually films are broadcasted in informal Video Parlors through the
country. Video Parlors are small huts or barracks where local entrepreneurs buy a TV set
and VCR or DVD player, and plays the film for a small fee. According to NFVCB, there
are 6,8412 Video Parlor registered in the country and estimated 200,000 unofficial
parlors. In Hollywood tickets sales account for 20 percent of the studio’s revenue and
home entertainment, merchandising and product placement provide 80 percent of the
industry revenues. Indeed the profit reality has transformed the way Hollywood operates
and theatrical releases now essentially serve as launching platforms for videos, DVDs,
network TV, pay TV, games, and a host of other products.
Figure 12 : The difficulties for Nollywood to capture movies revenue