Investigating audiovisual piracy in Africa

BAA: Cherise, why did you decide to carry out this film piracy survey?

Cherise: I talk to TV stations across Africa on a daily basis, but piracy is often a taboo subject. To better understand our clients and the African film market, we needed to get more insight into piracy as a major factor in the value chain, and how it influences our clients' decisions to attend and benefit from our trade shows. Film and TV piracy in Africa is rampant and it's important for us to work with industry experts to overcome major roadblocks for the growth of the African audiovisual industry. Piracy has a devastating effect on the media industry for every country involved and local productions often suffer the most, as they are pirated locally and don't have a chance to enter the international market. As I was asked to present on a hot industry issue for the upcoming PAMRO conference, we found it an excellent opportunity to dig deeper into the issue and to discuss concrete and creative solutions during the event.

BAA: Most of us know the negative effect of film piracy, are there any positive consequences to piracy in Africa?

Cherise: That is another taboo subject which provides some interesting insights. If you have bought or watched illegal content, you may have realised that it is often hard to get, you take risks and you may end up with bad quality. Piracy consumers are usually young people and it is well-known that the most communicative generate positive PR for productions that can eventually result in greater sales. In Nollywood, each film is replicated into 50 to 200,000 CDs/DVDs - distributed to markets, video clubs and eventually various homes, sometimes illegally. This process creates jobs and income for the people involved in the production and distribution of the DVDs. Pirated DVDs are relatively cheap for consumers and therefore content spreads fast to a wide audience. Most importantly, film and TV content, including pirated material, is motivating consumers to legally purchase HiFi, TV, and home video devices, internet connection, computer hardware and software, and cell phones, further generating jobs and increasing national revenue. Piracy has also encouraged price reduction for legal DVDs, cinemas, and pay-TV subscriptions, making them more accessible to the general public. Some pirated documentaries, films and TV stations have improved information and education among the masses, with piracy enabling their message to reach more people. Lastly, piracy can motivate consumers to purchase better quality legal content. When you are a real fan, you buy the real thing! But these factors still do not hide the fact that legal content can do the same job, but with a greater benefit to producers, the media industry, and the economy as a whole. From our side, we are working to understand why piracy is so strong and widely accepted in Africa and how we can work with all players involved to reduce it where possible and profit from it where its not.

BAA: How many respondents did you get?

Cherise: We got email responses from 45 people who are major industry personalities across Africa, representing 13 countries. Most respondents work for African productions companies, film distributors, TV stations, regulators, and other government bodies. We qualified the responses further via phone calls with a selection of experts on the African film industry.

BAA: According to survey feedback, what do those in the media industry in Africa think should be done to counter piracy in Africa?

Cherise: The majority of respondents - especially producers - have confirmed that there is a lack of information on the level of piracy in each country and what fines or penalties pirates can expect to incur. They have expressed that governments, with the support of media firms, should make the population aware of copyright laws and provide relevant guidelines via major media outlets and schools. Unfortunately, the industry is battling hard but the pirates are sometimes stronger than the authorities. Destroying pirated content is not enough: To fine, sue and follow up on major piracy groups is essential. Monitoring shops, TV stations and cinemas closely is also paramount. We understand, however, that these measures require a lot of resources which governments and local firms often do not have. Some respondents came up with the idea of taxing video consumer goods like blank DVDs and internet access to give a share back to film producers and to make it more difficult for pirates to sell cheap DVDs. Another option is to include more sponsorship and advertising as part of productions to balance revenue losses from piracy, since advertisers can also benefit from the content being highly pirated.
A few producers are getting nervous about the next few years, with the arrival of cheaper and faster internet access in Africa potentially offering uncontrollable possibilities to piracy. It must be carefully controlled to avoid illegal downloading and streaming. The survey provided some interesting insights concerning illegal TV access: US$18 dollars to get connected at a monthly fee of US$3. Cable TV operators and ISPs should, and some have, consider these figures and see how they could reduce subscription prices with relevant bundle packages while being able to cover their costs, pay their employees and make money in the long run. One respondent reminded us that piracy is also limited to a limited number of the population: We should remind ourselves that 550+ million people living in sub-Saharan Africa have no electricity (World Bank) and cannot therefore have easy access to audiovisual content and the knowledge that comes with it. Another 46% of the population of sub-Saharan Africa lives on less than US$1 a day (Economic Report on Africa, By Economic Commission for Africa, United Nations). It is important that we understand the context in which piracy has a stronghold before implementing barriers and constraints on an already constrained industry.

BAA: What are the reasons for film piracy in Africa?

Cherise: A few respondents explained the key reasons for piracy. First, as we can also see in Europe and the US, piracy is the cheapest option and therefore often the most attractive consumer choice. Jobs are also scarce and selling illegal content is a way to make money. As the sector is more often than not under - or unregulated, the risk is relatively low for pirates. Adding to this, corrupt officials sometimes liaise with pirates, further reducing their risk of prosecution. Lastly, people are often uneducated on the value and importance of original material and are unaware of the laws against piracy in their country.

BAA: What are the negative impacts of film piracy in Africa?

Cherise: Piracy has had a strong negative impact on local production, pay-TV subscriptions, advertising revenues, cinema attendance and legal DVD sales. Since illegal copies sometimes offer low quality, film piracy also affects the image and branding of large productions. Local producers and distributors of legal content suffer directly, but the media industry, the economy, and the citizens who have reduced access to quality content suffer alongside them. The black market may be strong, but it can't make up for the money lost from new and adequately valued productions and their distribution. Since African films are rarely distributed outside of Africa, it's essential that producers can rely on a local legal consumer base in order to foster and build a local voice on TV and in films. We can only expect quality productions when the society values the work.

BAA: Did you learn anything new and what are the key survey findings?

Cherise: Yes indeed. There is not much information about the topic and thanks to this survey and our discussions with experts in the field; we now have a much clearer picture of how illegal content affects the whole African film industry. We are now certain that most of African countries are confronted with artistic content piracy, mostly for films and music. ?DVDs are cheap and easy to replicate, and this is the first threat. Next comes a few TV stations not paying TV rights to the producers. Authorities must punish TV networks who broadcast pirated programmes. Lastly, pirating pay TV channels is one of the strongest threats in many countries. It seems that illegal internet streaming and downloads, common in the West, has not yet arrived in Africa, simply because internet penetration is very low. According the International Telecommunications Union, less than 5% of the population of Africa has access to the internet, and only 0.2% of Africa's population has broadband access. But that should change rapidly within the next five years as significant fibre optic cable projects are making waves on the African continent. African telcos/cable operators need to get their act together fast to plan for piracy threats.

Below are the most significant findings from the survey results:

Question: What piracy methods cause the greatest financial loss (pirated DVDs, cable, non-authorised broadcasts)? If possible, could you rank them?

Answer: DVD/CD, broadcast and cable are clearly the three most used piracy methods. One respondent noted that pressed imported DVD's come from outside of the continent, primarily from China, whereas others have explained that they are locally burned or come from contacts in Europe. Instead of copying onto DVDs, VCDs and CDs, consumers have started using hard drives and PVR devices to copy various types of content like in many other continents.

A majority of respondents highlighted that some broadcast professionals (TV stations, theatres) are major pirates themselves. As is the case on other continents, they sometimes “forget“ to pay-TV rights to the producers or distributors or they consider that they will get away with it. Here is the exception: One respondent added that, “In South Africa, piracy comes from copied DVD's and internet downloads or streamings. Others piracy methods are not applicable to the country.”
Many have reported that pirates flood the street. There is a large number of shops and street hawkers that sell illegal DVD/CDs, especially in Nigeria, even though the government has put measures in place to stop them.

Hacking a pay-TV station is a common practice in some countries. Pirating "Canal Horizons" is often mentioned. Lastly, it seems that piracy also comes from a few post-production houses, where employees copy the production they have been working on and distribute it around them.

Q: What is the most pirated content? If possible, could you rank them?

A: All content is pirated, whether it is foreign or local. In descending order, Hollywood and Nollywood films and series are key targets across Africa. Then comes Bollywood (films and musicals), sports' events, Latin American Telenovelas and local productions (other than Nollywood), including filmed theatre pieces. European content comes last in the overall scores. Production companies who have given their feedback report that sometimes local productions have already been pirated before they get broadcasted on local TV stations: they are downloaded and sold on the streets.

Q: What is the average price (or price range) for an illegal cable TV subscription?

A: Some countries see piracy in the form of hacked cable operators' networks. They simply buy TV set up box, and plug it to the TV network. Pirates sell it as a cheap monthly subscription. Prices per month for pirated TV streams start from: US$5, €5-8, 2500-5000 F CFA, or Ksh1,000 depending on the country. In Kenya for example, it seems that illegal cable affects more shanty pubs and drinking dens as opposed to households. It was also reported that some countries like Nigeria and South Africa do not provide pay-TV cable services and therefore do not witness this form of piracy.

Q: What is the average price (or price range) for a pirated DVD?

Prices vary according to locations, shops and street markets. They start from US$0,80 to US$5, €1-3 , 500 to 3000 F CFA, Ksh100 or R50 to R500. Producers and distributors cannot discount their content to that level. Pirated discs which can include several films will sell for 700 CFA (US$1.35), whereas the real product cost around 6,000 CFA (US$11.50) in Western Africa.

Q: Which 5-10 countries have the most difficulty with piracy?

A: Nigeria, Cameroon, Ghana, Togo, Kenya, and Benin got the top ranks.

Q: Which 5-10 countries have the least difficulty with piracy?

A: South Africa (because it is highly regulated compared to other African countries), Namibia, Ghana and Zimbabwe were the most quoted.

Q: Which 5/10 countries fight the hardest against piracy?

A: South Africa, Ivory Coast, Nigeria, and Senegal were seen as fighting the hardest. The level of piracy is directly related to the country's economic level, technology available and media penetration. One person reported that in Kenya and Tanzania, retail piracy of local content is less than 15% because the authorities are always on the lookout, so local content is well safeguarded. Kenya has actively championed for changing legislation to counter piracy and it has worked very well for local content as a way to promote job creation. In Tanzania, the people who used to pirate content, especially music, now run a legal distribution business and sales are some of the highest in East Africa.

Q: What measures have been taken to fight piracy?

A: In several African countries, police have frequently confiscated and burned pirated material, discouraging only some pirates. In countries where there is no strong anti-piracy message and measures such as in South Africa and Cote d'Ivoire, some have revealed that they prefer to sell their productions to the diaspora in the Western World as they keep getting pirated locally. In Nigeria, it was recently decided to reduce piracy by opening secure and auditable distribution channels. The Kenyan legal system has special prosecutors assigned to piracy cases. Some other producers mentioned that they have watermarked their original copies to be able to track potential leaks. One respondent wrote: “The Nigerian National Film and Video Censors Board did a campaign with adverts on TVs inviting people to buy regular and holograms stamped vcd's. NFVCB makes a profit on each stamp.” Multichoice and other major companies are also working with regional authorities to protect their content.

Q: On a scale from 1-10, how would you evaluate your local authorities' fight against piracy? 1 being the least effective, 10 being the most effective. Please explain your choice.

A: Senegal and South Africa get the highest ranks, followed by Senegal, DRC, Ghana, Kenya, Cameroon and Uganda, where some form of lawsuits and anti-piracy measures have had strong impact. Senegal has made drastic efforts to stop and capture pirates and their illegal content, giving severe fines. These measures have decreased piracy volumes in the capital, but resources are limited: the anti-piracy squad is made of 22 policemen for 13 million inhabitants.

Q: How aware are individuals of the value of content? Do they see a difference between original content/a legal channel and pirate content/an illegal channel? Are there any measures in place to educate people on the subject?

A: Nigeria and South Africa were the most cited countries where copyright law awareness among the population has been raised by governmental or regulatory bodies. In short, what matters is the cost and the quality of the copy made. An original movie DVD can costs up to US$30 whereas a pirated starts at one Us$1.

The most common measure in place remains warning written on actual DVDs, the message does not get across well, namely with a large illiterate population. Another example includes the Kenyan government which has focused their communication on “saving local producers” by buying original content. An original Kenyan movie DVD only costs about US$2 - US$6. Apart from a few countries where efforts have been made to make people aware of the value of content, and the consequences if they buy pirated copies, most people do not know about copyrights and think that piracy is tolerated. Respondents have reported that the population starts to see a difference between original content and legal TV channels vs. pirated content and illegal channel, but saving money is the priority. Measures in place to educate people on the subject have been limited. However, most respondents report that the situation is not going to change if nothing is taught in schools and via the media, whether it is radio, TV or print, to motivate consumers to buy original and legal content. Many recommend that public entities and private groups sue pirates and follow up to show examples of what piracy leads to.

Q: Do you think it is possible to stop content piracy (or parts of it), and if so, what would you suggest in order to fight it?

A: Most respondents reckon that “Yes!“, piracy can and has to be stopped, and recent measures have generated impressive results, especially regarding local content. When it comes to local productions, most agreed that the film industry loses money, nations lose money, pirates take huge risks, and finally that culture is not safeguarded. Several respondents suggest that government and regulators should start with communication campaigns first, and as a second step, take legal and local measures.

Regarding foreign content, the population in most African countries views it as "free for all" because there is no voice advocating for it. It is recommended that foreign content producers need a permanent presence to ensure that once pirates are caught, producers press charges. It also appears that large foreign film producers and distributors consider Africa as a drop in the ocean, that suing is not worth the investment in time and money, and that most reported cases have gone unanswered.

Q: What do you think of the Nollywood production model (low-cost)?

A: Most have reported that it is the ideal model for Nigeria and probably for several countries in Africa. It is one solution to reduce poverty as it generates thousands of jobs. Its TV rights' prices allow more TV stations to broadcast them, and it provides a good insight on the life and culture in Nigeria. The Nollywood industry is also a way for Nigeria to gain more respect abroad. Some Nollywood films provide moral and ethical messages, but stories are often similar. If it gets better regulated to avoid piracy and if there is a better union between the film industry and financial services, film production across several African countries could be booming. Two respondents claimed “it is the future” and some added: "Price is king!". However, some respondents see it as a money making machine greatly affecting content quality. More efforts should be made on quality vs. quantity and some respondents attest that the Nollywood film industry seems to be following that path. Nollywood has a great potential.

Article published courtesy of Balancing-Act Africa and Basic Lead