The Nigerian cinema industry recorded a revenue of N2.25 billion from ticket sales in the first quarter (Q1) of 2024, reflecting a significant surge compared to the previous year.
This data was revealed in the Nigerian Box Office Year Book for 2023, published by Filmone Entertainment, an independent film distribution and production company, on Monday, according to the News Agency of Nigeria.
The N2.25 billion revenue marks a substantial improvement over the N1.5 billion generated in the first quarter of 2023. This represents a 46% increase in box office revenues year-on-year.
Revenue increase can be tied in part to the increase in ticket prices, which have risen by 52% from an average of N2,479 in Q1 2023 to N3,765 in Q1 2024.
A breakdown
Despite the substantial increase in revenue, the total number of admissions at cinemas saw a slight decline.
The first quarter of 2024 recorded 596,609 admissions, compared to 620,477 admissions during the same period in 2023, indicating a 4% decrease.
This decline in admissions, despite higher ticket prices, suggests a negative correlation between ticket prices and the number of cinemagoers.
The report highlights that Nollywood films dominated the box office, accounting for 56% of the total revenue.
The highest-grossing film for the period was “A Tribe Called Judah,” which alone contributed 27% of the overall Q1 revenue. In contrast, Warner Bros.’ “Aquaman and the Lost Kingdom” accounted for 11% of the quarterly earnings.
In terms of new content, the Nigerian market saw the release of 40 new titles in the first quarter, excluding spillovers from previous periods. This influx of new films underscores the vibrancy and productivity of the local film industry.
What to know
The details provided in the report offer a comprehensive look at the dynamics of Nigeria’s cinema sector. The significant revenue growth, despite a decline in admissions, shows that ehe substantial increases in ticket prices have not deterred overall revenue growth but impacted the number of admissions. This indicates a level of price sensitivity among cinema-goers.
The dominance of Nollywood films, particularly “A Tribe Called Judah,” highlights the strong local preference for indigenous content, which continues to draw significant box office revenues.
The cinema industry’s ability to generate higher revenues in the face of reduced admissions reflects its resilience and the effectiveness of pricing strategies and marketing efforts.
More insight
Looking ahead, the continued performance of the cinema sector will depend on several factors, including the balance of ticket pricing, the quality and appeal of film releases, and broader economic conditions. The robust performance in Q1 2024 sets a positive tone for the rest of the year, suggesting that with strategic adjustments, the sector could continue to thrive despite the challenges posed by fluctuating admission numbers.
