The Innovative Distribution Fund is a N2 billion fund. It focuses on reducing the hurdle for private sector financing and help participate in the industry’s development by sharing some of the initial risk and accelerating the path to full sustainability.
The Innovative Distribution Fund aims to support viable innovative solutions in film distribution, including exhibition infrastructure, physical distribution and technology-based solutions such as digital streaming.
The success of the IDF is largely dependent upon the implementation of parallel policy initiatives, which the Federal Government is exploring, specifically:
- Enforcement of the copyright protection laws which prohibit the sale of un-licensed copyright-based material
- Prosecution of defaulters by the appropriate arms of government. This entails the effective empowerment of the regulators of film content and distribution, namely the Nigerian Copyright Commission (“NCC”) and the Nigerian Film and Video Censors Board (“NFVCB”); and the systematic partnership of these regulators with law enforcement agencies; the Police and Customs to curb distribution of illegal content and/or by unlicensed operators
- Public awareness campaign on anti-piracy policy initiatives, as well as, public educational campaign on the perils of piracy including jeopardizing the continued existence of the industry, hampering the governments’ ability to deliver social services due to reduction in tax revenue etc.
- Review and strengthening of the copyright laws vis-à-vis penalties and the inclusion of provisions to regulate online content distribution
The IDF aims to complement other existing initiatives/programs targeted at the Nigerian film industry and to act as a catalyst for institutional capital participation in projects with the potential to deliver financial returns commensurate with their risk profile. The IDF may enhance the collateral adequacy of distribution projects hence attract additional investment into the viable projects from private sectors providers of capital.
Projects to be considered for co-financing by IDF include distribution solutions across a variety of platforms, for example:
- Physical, i.e. DVDs, Blu-ray
- Digital / Online Streaming
- Exhibition solutions, i.e. cinema halls
- Other technology based solutions such as e.g. mobile applications
- Enablers of effective distribution solutions such as dubbing facilities, standard studios, replication plants, etc.
All projects must expand the prospects for distribution of Nigerian film content which results in effective monetization of the product with majority of the revenues earned accruing to the originators of content as well as for the investors in the production and distribution other stakeholders in the Nigerian film value chain. This will increase the sectors attractiveness from an investment standpoint and encourage future capital flows towards the sector.