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Old 09-26-2007, 06:33 PM
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Nollywood's distribution framework

ALL the problems currently plaguing our movie industry, a.k.a. Nollywood could be totally tackled or neutralised with the full implementation of the new distribution framework by the National Film and Video Censors Board; (NFVCB). Put differently, it only requires the industry's honest co-operation with the government official regulator to fully implement the new distribution framework, for all our current problems to be completely resolved or significantly reduced.

The popular song of every producer now is piracy, but piracy is only a manifestation of a weak and ineffective distribution system. The new distribution system has adequate provisions to tackle the menace, if not to totally uproot it, to at least reduce it significantly. First, unlike now when it is an all-comers affair with just about anyone or any business plunging into movie distribution without fulfilling any formality whatsoever, all the operators in the system will now have to be formally registered and licensed by the Censors Board, and be bound by a common set of operating rules and regulations just like it obtains with the banks under the supervision and controls of the Central Bank and telecommunications companies under the regulation of the Nigerian Communications Commission.

Secondly is the territorial method of licensing the new distributors. It means every inch of the Nigeria territory is designed to be under a known and identifiable distributor. Now, the pirates not being spirits and their business locations not being in the air, if a movie is being pirated, it would be easy to trace them using the Board's licensed distributors in the areas where the scourge has been identified. Unlike now too, the Board won't need to beg or persuade any of the distributors it has licensed to be in the business in the first place, but rather as a matter of routine regulators would issue instructions on what needs be done.

Should such distributors remain unco-operative, or intransigent because they have something to hide, the Board as the official regulator should not be short of ways to bring them into compliance. All the licensed distributors under the new dispensation will have their security numbers conspicuously marked on the movie they have official clearance to distribute and one of the conditions of that official clearance is to list all the outlets where the movie can either be hired or bought. This simplifies the tracing and in identifying the culprits.

Lack of operating funds is yet another problem the industry now contends with, but again the new distribution framework, and without prejudice to the plan for government-sponsored film funds has a solution. To start with, Producers' present private efforts to raise funds will thrive more with solid, identifiable and auditable distribution structures to guarantee investors, first that their investments are safe, and that with time they will get back the capital invested with attractive profits.

As of now, distribution structures though identifiable are not universally auditable because to pass that test, the structures must boast of independently verifiable sources of both the inflow and outflow of money that leaders independent of the borrowers can investigate and vouch for. Some may argue that the present structures in our movie industry are adequate, but not many potential financiers willingly accept them, especially against the background of the experiences of those with not so savoury tales to tell.

But now that the auditable quality of the new distribution framework is not in doubt, it should make it easier for producers to raise production funds using either advances from their readily-identifiable distributors and duly licensed by the Board in exchange for the rights of distribution, or pledge the commitment of such distributors as guarantee to their financiers. Again, with all the distributors known and duly licensed by a single national regulator, the financial services community could overcome their present reservation and support the industry with different products for access to structured productions funding. Also, the new system emphasises repeat distribution income for quality productions, giving our producers solid sources of regular earnings for all their movies adjudged good by the buying public. This, therefore, should limit the search for funding - for the prudents - to be a one-off, or once in a while, not an every production headache.

Another problem now is the so-called low-quality productions, which in truth is a by-product of the present market reality. Always, productions reflect their market capacity. If the highest amount a distributor will pay or offer to pay for a finished product is one million, it is extremely fool-hardy of a producer to spend that same one million to produce all in a bid to win a doubtful critics' definition of quality. There have been those that in the past produced their movies, either to prove some artistic points or in the mistaken belief that a quality movie automatically brings a matching financial returns.

Today, the sad outcome of such endeavours is the reason why many tested hands in movie productions no longer venture to produce, and why those obliged to stick sensibly keep to the financial boundary of the distribution market. Right now, many good films are not in the market because there are no distribution takers. The new distribution policy as already stated has an in-built incentive for producers to concentrate on fewer quality productions because it provides for specific distribution period as a major contractual clause. This means endless opportunity for continuous distribution contract renewals of really good movies that enjoy public patronage. As for those that fear that the new framework may not work because many of the present operators, at different levels will not bother to register and still remain in business, it is unlikely that the board will need lorry-loads of police, army, cudgels and swords to make them comply. Rather, the board's legal power to censor and clear a movie for distribution and the supply system of the framework should be enough with their in-built provisions to automatically shut out all those not formally registered and licensed by the board.

Once again under the new policy, all the licensed distributors will be under the central authority of the board as a national institution, just like the Central Bank controls all the banks and other financial institutions in the country. Day-to-day administration and monitoring is however a joint responsibility of all the tiers of governments and all the law enforcement agencies. After the board has licensed as provided for in its enabling law, it informs the states and local government authorities including all arms of law enforcement of all those licensed as the only legitimate outfits permitted to engage in and carry on the business of movie distribution in all its ramifications. Illegal outfits therefore will have more than the board to answer to.

Licensed video-clubs and community distributors are positioned to sell to their community in recognition of a simple psychology that people in a community will hardly ever leave their communities to patronise those of other communities. Again as everyone in a community will know almost one another, it will be quite difficult for an unlicensed video-club to roam free unchecked amongst the legitimate outlets. And it will not be in the business interest of a national, state, and local government distributor to sell directly a couple of hundreds to the public. It would be easier and more profitable for them to transfer the business risks (of their investments) to a small number of lower-level licensed distributors that constitute their territories.

By sub-licensing the smaller territories below them, they immediately re-coup their capital with profits, and have those to hold liable in the event of piracy. Besides, while all other distributors from national to local government could sell in bulk as they have lower distributors below them, local retail points like video-clubs or community distributors designed as the distribution end-point to deal directly with the public are allowed to sell a copy only to anyone at anytime.

This plus other controls like specific names and marks on the videos adequately prevent a licensed video-club from selling to an unlicensed one from another community. Highways and their hawkers are under their various local governments licensed distributors to manage, and if there is no licensed distributor in a state, local government or a community, the people therein are not cut-off from the distribution market, or enjoyment of the movies, but just like if a community has no branch of a bank, people there have to reach the nearest licensed distributor outside their community, local government or state. But, this needs not happen because by far the best part of the public service of the new distribution framework is the opportunity it offers millions of jobless Nigerians to start a new profitable career in movie distribution at any level of their choice.

ťOgundaisi, a filmmaker, lives in Lagos

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