Nigeria has a strong entertainment industry which has spread beyond its borders into the African region and African diaspora markets in the UK and the US. The industry is comprised of both music and film production. The film industry alone is worth an estimated US$250 million a year and the third largest film industry in the world after Hollywood and Bollywood. Nollywood, as it known, produces more films per week (40) than Hollywood or Bollywood. Most of these are low budget productions with a short shelf-life due to high production levels which turn out an average of 6 films per day. The music industry produces an average of 550 albums of different types of music annually. Record sales have more than tripled in the past 5 years, averaging 10 million in 2005 and rising to an estimated 30 million in 2008. There is revenue from musical shows and concerts held in Nigeria. An estimated 1200 concerts and musical shows take place every year and account for a combined annual turnover of US$105.5 million. The entertainment industry in Nigeria offers potential for growth and value addition for the Nigerian economy. The popularity of the industry makes it worth exploring. The International Music Marketplace The recorded music industry has traditionally derived the majority of its revenues through the sales of physical recordings. However, the rise of digital music has resulted in substantial changes to the industry’s structure as shown in the table below. Recording companies have adapted their approach to respond to new trends in how music is distributed and consumed. There is still a market for physical recordings such as albums, single sound recordings and music videos. Digital distribution refers to distribution of music to mobile phones and music downloads through the internet. There has been an increasing shift from CDs to music downloads. Global digital music sales reached US$7.6 billion in 2008 and are projected to increase to US$14.8 billion in 20133, an annual increase of 14.2%.
Nigeria has fashioned an African Hip Hop style of music which appeals to international audiences. A number of its musicians are internationally recognised and have received international recognition through awards such as the MTV Europe Music Award, Channel O Music awards and Kora Music awards. These awards have been received for various musical talent categories as well as other areas such as best video and special effects. In 2008, the industry had 30 million legal record sales with a value of just over US$9.3 million while concerts and music shows generated an annual turnover of US$105.5 million. Revenue received from concerts and musical shows are a clear indication of the success of the music industry. There is potential for market growth, competitiveness, and employment. There is business opportunities in the music industry.
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