Why Nollywood stakeholders bet on community cinemas despite early losses

For Nollywood’s stakeholders, the path to unlocking Nigeria’s underserved audience lies outside the traditional multiplex. Despite initial financial and infrastructural setbacks, industry stakeholders are doubling down on the potential of community cinemas.

At the recent SMC Filmmakers’ Forum, organised by the Nollywood Study Centre of the School of Media and Communication, Pan-Atlantic University, in Lagos, stakeholders argued that achieving commercial viability in this space hinges not on quick returns, but on sustained, long-term investment in infrastructure and technology, which they believe is necessary to bridge the wide gap between the country’s population and its limited screen count.

Speakers included Kolade Adewoye, CEO of Fusion Intelligence Technologies; Mohammed Sedik, Associate Vice President at Circuits Africa, who represented Imade Bibowei-Osuobeni, Co-founder and COO of Circuits; and Mayowa Akindele, Head of Content at BluePictures Entertainment, who represented CEO Joy Odiete.

Participants agreed that community cinemas can improve access to films in underserved areas. They noted, however, that the model is new and requires commitment from filmmakers, distributors, technology providers, venue owners, and regulators to reach commercial viability.

Adewoye said the main obstacle is not a lack of ideas but an unwillingness to test and improve new models. “You cannot carefully figure out the business model before launching,” he said. “Our business model has evolved three times in the past year. We lost money, but we consider it school fees. You have to build, test, and improve.”

His company created Convoy, a secure digital platform for delivering films to community cinema sites. The platform also handles ticketing, revenue reporting, and automated payments to filmmakers. The first public screening faced technical problems that reduced attendance and caused losses. Adewoye said such setbacks provide lessons for building a workable system.

Regulation and infrastructure also need attention. Adewoye pointed out that the National Film and Video Censors Board has offered waivers for community cinemas, but operators still deal with multiple licensing requirements. He called for better collaboration between regulators and industry players to ease processes while maintaining standards.

Scaling the model will involve partnerships with owners of existing venues such as hotels, restaurants, and community halls. This approach avoids the high costs of building new cinemas. “What we are basically targeting is areas with multiple locations spread across the country so that we can have one conversation and move through,” Adewoye said. “If I’m already working with an existing hotel or restaurant, it becomes a much easier conversation because they already have food and beverage, accommodation, and other revenue streams.”

Revenue sharing remains a key issue. Venue operators seek larger shares to cover costs such as power and maintenance, while filmmakers want fair compensation for content that draws audiences. Adewoye said any arrangement must balance the needs of both sides.

Sedik said community cinemas should not copy the pricing and terms used by multiplexes. “The pricing cannot be the same, there are a lot of things that are different when it comes to operating a community cinema,” he said. He called for industry-wide collaboration, describing community cinemas as complementary to, not competitors with, conventional cinemas.

“The first time you get into community cinemas, it is very cost intensive because you need to put all the structures in place,” Sedik added. “But it is something we will continue to do because of what we experienced during the first project.” Investors should prepare for an initial learning period before the model matures, he said.

The forum discussed the recent community cinema release of Agesinkole 2 by BluePictures in partnership with Circuits. The film screened in about 30 venues in Lagos, Ibadan, Ilorin and other parts of Southwest Nigeria. Tickets outside Lagos cost N3,000 to improve affordability for families and new audiences.

Akindele said the release performed better than some films in regular cinemas at the time. BluePictures is now developing systems to support more community cinema releases.

Nigeria has only a few hundred cinema screens for a population of more than 230 million people. Speakers said community cinemas can help filmmakers reach wider audiences and reduce reliance on multiplexes.

The forum concluded that community cinemas offer a major chance to expand access to Nigerian films, provided stakeholders address the remaining operational questions through patience and coordinated effort.