How Do Nollywood Producers Make Their Money?
Movies, like every other service and product, is meant for the end consumer – the general public. “Movie producer” is the technical term used for every professional that makes an input to the makeup (story line) of a particular movie. This is why a typical movie often has many producers.
However, there is always the lead producer; the one who actually owns the movie. This lead producer is usually the one who covers the cost of production, and like every investment, how much he/she earns is wholly dependent on the ROI (return on investment) of the movie.
In essence, a top-grossing movie translates to huge profit for the producer, while a low grossing movie means little profit or loss. This is irrespective of how much money was pumped into the production of the movie.
A typical instance is Genevieve’s most recent production titled Lionheart, which was acquired by Netflix for over $3 million. What this means is that, Genevieve earned $3 million on a movie whose production couldn’t have cost more than $50,000. That is a staggering 6000% gross earning for the star actress/producer.
On another day, for another producer, on a different movie, the value could be considerably lower or significantly higher.