LEVERAGING ON ENTERTAIMENT TO PROJECT AFRICA’S IMAGE: THE CASE OF FILM Theme: Smart Investments > Good Returns >

WWW.KENYAFILMCOMMISSION.COM

LEVERAGING ON ENTERTAIMENT TO PROJECTAFRICA’S IMAGE: THE CASE OF FILM Theme: Smart Investments > Good Returns >


KENYA FILM COMMISSION Theme: Smart Investments > Good Returns >

WHO ARE WE AND WHAT IS OUR OBJECTIVE?

“KFC is a state corporation whose overriding objective is to enhance economic and social well-being of Kenya and its people through building of a self-sustaining and vibrant local film industry in Kenya.”


A BILLBOARD IN AN AFRICAN AIRPORT Theme: Smart Investments > Good Returns >

HOLLYWOOD HAS MADE BILLIONS OUT OF AFRICA’S WILDLIFE!!!

Big ? What has Africa made out of it?


WHY FILMSTheme: Smart Investments > Good Returns >

Why Invest in Filmsan award-winning filmmaker -James Jaeger in his article

“A Radical, Up-side View”•“A movie is the best investment one can make for the up-side potential vs. the risk.•They're better than real estate, blue chip stocks, gold, silver, precious stones, income-producing rental properties, treasuries, international currencies . . .•better than anything, with the possible exception of investing in your own education and spiritual enlightenment.


1. POVERTY2. UNEMPLOYMENT3. ETCInvesting in film industry will generate millions of dollars and create millions of jobs…and change these images that in many cases result from realities in Africa.

IMAGES OF AFRICA Theme: Smart Investments > Good Returns >


Global Trends in Film Earnings• Films generate income from several revenue streams

including public exhibition in theatres, home video, television broadcast rights and merchandising.

• Theatrical box office earnings are the primary metric for trade publications in assessing the success of a film, mostly due to the availability of the data compared to sales figures for home video and broadcast rights.

FILM EARNINGS Theme: Smart Investments > Good Returns >

http://en.wikipedia.org/wiki/Movie_theater

http://en.wikipedia.org/wiki/Home_video

http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/Broadcasting

http://en.wikipedia.org/wiki/Merchandising

http://en.wikipedia.org/wiki/Box_office


Global Trends in Film Earnings

Worldwide gross Year 1 Avatar $2,782,275,172 2009 2 Titanic $2,185,372,302 1997 3 Marvel's The Avengers $1,457,760,486 2012 4 Harry Potter & Deathly Hallows-2 $1,328,111,219 2011 5 Transformers: Dark of the Moon $1,123,746,996 2011

FILM EARNINGS Theme: Smart Investments > Good Returns >

http://en.wikipedia.org/wiki/Avatar_(2009_film)

http://en.wikipedia.org/wiki/Titanic_(1997_film)

http://en.wikipedia.org/wiki/The_Avengers_(2012_film)

http://en.wikipedia.org/wiki/Harry_Potter_and_the_Deathly_Hallows_%E2%80%93_Part_2

http://en.wikipedia.org/wiki/Transformers:_Dark_of_the_Moon


Global Trends in Film Earnings

6 The Lord of the Rings: The Return of the King $1,119,929,521 20037 Pirates of the Caribbean: Dead Man's Chest $1,066,179,725 2006 8 Toy Story 3 $1,063,171,911 2010 9 Pirates of the Caribbean: On Stranger Tides $1,043,871,802 2011 10 Star Wars Episode I: The Phantom Menace $1,027,044,67

1999

FILM EARNINGSTheme: Smart Investments > Good Returns >

http://en.wikipedia.org/wiki/The_Lord_of_the_Rings:_The_Return_of_the_King

http://en.wikipedia.org/wiki/Pirates_of_the_Caribbean:_Dead_Man's_Chest

http://en.wikipedia.org/wiki/Toy_Story_3

http://en.wikipedia.org/wiki/Pirates_of_the_Caribbean:_On_Stranger_Tides

http://en.wikipedia.org/wiki/Star_Wars_Episode_I:_The_Phantom_Menace


Top 5 High Budget Films 1. Pirates of Caribbean USD 300 million2. Tangled (Disney) USD 260 million3. Spider Man 3 USD 258 million4. Harry Porter USD 250 million5. Avatar USD 237 million

PRODUCTION BUDGETS FOR FILMSTheme: Smart Investments > Good Returns >


Return on Investment Performance on a Few selected films in the recent years

Feature Film Investment Returns on Investment

% of returns on Investment

HALLOWEEN $320,000 $75,000,000 23437.5

RETURN OF THE SECACUS 7

$60,000 $2,500,000. 4167

BENJI $550,000 $45,000,000 8182

NIGHT OF THE LIVING DEAD

$114,000 $40,000,000 35088

GRIZZLY $700,000 $31,000,000 4428

DAWN OF THE DEAD $700,000 $55,000,000 7857

BLAIR WITCH PROJECT $5,000 $150,000,000 3,000,000

MY BIG FAT GREEK WEDDING

$1,500,000 $200,000,000 13333.3


Where are we in Africa? Nigeria 2010/2011• Annual revenue for Nollywood is estimated to be around $590m. (Kshs 47.2

billion) • On average, nearly 600 films are produced annually, each selling nearly

50,000 copies. • In 2011, around 2000 movies were produced in Nigeria, averaging roughly 40

Films a week. • Average shooting time is10 days and costing between $10,000 and $15,000. • The film sector in Nigeria is the country’s second-largest employer after

agriculture, providing jobs for nearly 1million Nigerians.

FILM IN NEGERIATheme: Smart Investments > Good Returns >


Where are we in Africa? South AfricaAccording to the 2009 economic impact assessment study

commissioned by the Cape Film Commission• The South African film industry had a direct annual turnover

of more than R2.65-billion

• The industry contributed an indirect annual turnover of more thanR3.5-billion to the country's gross domestic product (GDP).

FILM IN SOUTH AFRICATheme: Smart Investments > Good Returns >


• The total value- added (GDP at basic prices) of the film industry in 2009/2010 amounted to Kshs.71,806.3million, equivalent to 3.6% of the total GDP of Kshs.2,080,003 million.

• Among the film industry, the direct contribution to the Kenyan economy amounted to Kshs.1,925.3million (0.093%), while the indirect contribution was Kshs.53,143.6 million (2.56%).

“Economic contribution of film and motion picture industry in Kenya, KFC, 2011”

KENYA


KENYA• The industry also employed 4,103 people on permanent

basis in 2009.• The total wage earnings in the industry was 2,955.6

million in 2009/2010.• The total number of establishments in the industry

were 411 in 2009.• The international impact of the industry in Western

countries especially, can be assessed by the increase in the issuance of special permits for film and documentary producers, which was 3180 in 2011.


INVESTMENT OPPORTUNITIES

. Film Production ranging from....• Full length feature films• Short feature films• Animated films and television drama• Documentary films• TV drama• Reality shows

FILM GENRES Theme: Smart Investments > Good Returns >

Film and Country Branding• Films convert audiences into brand

ambassadors/tourists• Destination images greatly influence perceptions &

choices• Films provide knowledge of key aspects of country• Country promotion is very well done through film – the

case of US.• Films play a key role in promoting investment.


Film and Country Branding

The following films have presented huge exposure for Kenya• Out of Africa• First Grader• Nairobi Half life (recently screened in 48 theatres

across the US)…And many others


Film and Country Branding: Selected cases

• The New Zealand tourism board looked at the lords of the rings film in terms of promotional price and worked out what the exposure would have cost in commercial equivalent.

• Estimated the exposure at US$ 41Million


Film and Country Branding: Selected casesFilm Location Impact Brave heart Wallace, Scotland 300% Increase visitors after releaseDances with Wolves Kansas 25% increase compared 7% previous yearThe Lord of the rings New Zealand 10% increase per year 1998 - 2003Mission Impossible 2 Sydney 200% increase in 2000Little Woman Orchard 65% increase after releaseSaving private Ryan France 40% increase in American touristsPride and Prejudice Cheshire, UK 150% increase in visitorsMiami Vice Miami 150% increase in German touristsCaptain Corelli's Greece 50% increase over 3 years Troy Turkey 73% increase in tourism



• Film images last long in people’s mind.• Film characters become “real” to viewers.• Images in films are powerful (people shed

tears)• Films also pick real images (Hollywood signage)• AFRICA can tell her story through FILM.

PASSING MESSAGES THROUGH FILMTheme: Smart Investments > Good Returns >

Documents

LEVERAGING ON ENTERTAIMENT TO PROJECT AFRICA’S IMAGE: THE CASE OF FILM Theme: Smart Investments > Good Returns >