In a surprising turn of events, a new report by Filmone Group has found that Nigerians still prefer watching movies in cinemas over streaming platforms. Despite the growing popularity of services like Netflix and YouTube, 66% of 500 cinema-goers surveyed in the report prefer the big screen experience. This suggests that theatrical releases still hold strong appeal and remain a critical part of the Nigerian film industry.

The report, which provides insights into the Nigerian box office, reveals that Netflix is the second most preferred choice at 27%, while YouTube, which has seen a surge in Nollywood movies, comes third at 4%. Other streaming platforms, such as Showmax and Amazon Prime Video, trail behind with 2% each. This is a significant finding, especially considering that Amazon Prime, another streaming giant, exited Nigeria in January 2024, just one year after investing in several Nigerian productions.

Despite the strong appeal of cinemas, infrastructural gaps exist in Nigeria. The report notes that the country has only 102 cinemas, accounting for 92.9% of Anglophone West Africa's box office. Lagos dominates with 36 cinemas, reflecting the consumer spending in Nigeria's economic capital. However, there are signs of growth, with 24 new cinemas emerging in 2024, including Silverbird Cinemas' first cinema in Kaduna. Cinema admissions in Nigeria also increased by 2% in 2024.

The report highlights the resilience of the cinema ecosystem, despite macroeconomic headwinds hitting disposable income negatively. "This resurgence underscores the enduring appeal of the big screen experience in Nigeria, even as ticket prices soared by 95% in nominal terms between 2021 and 2023," the report said. Filmhouse Cinemas maintained the highest market share in West Africa for the seventh consecutive year, grossing ₦3.2 billion in box office revenue. Silverbird Cinemas and Genesis Cinemas earned ₦2.2 billion each, with Silverbird holding a 19% market share and Genesis Cinemas capturing 18%. EbonyLife Cinemas had the highest-grossing cinema location in the country, contributing 7% and making over ₦838 million in ticket sales, with more than 138,000 people buying tickets to watch movies at EbonyLife cinema.

The report's findings have significant implications for the Nigerian film industry and the entertainment tech sector as a whole. They suggest that, despite the rise of streaming platforms, cinemas remain a vital part of the movie-watching experience in Nigeria. This presents opportunities for cinema infrastructure development, particularly in underserved regions. As Filmhouse Group notes, "The opportunities for more cinema infrastructure abound, especially as despite the macroeconomic headwinds hitting disposable income negatively, the subsector has remained resilient."

The report's findings also underscore the importance of understanding local market preferences and needs in the entertainment tech sector. As streaming platforms continue to expand their reach, they must adapt to local contexts and preferences to remain competitive. In Nigeria, this means acknowledging the enduring appeal of cinemas and investing in infrastructure development to support the growth of the film industry.

In conclusion, the report by Filmone Group provides valuable insights into the Nigerian box office and the entertainment tech sector. Its findings highlight the importance of cinemas in Nigeria and the opportunities for growth and development in the sector. As the entertainment tech landscape continues to evolve, it is crucial to understand local market preferences and needs to remain competitive and drive innovation.