We wrote in the past about how the three main producing countries in world cinema are Nigeria, India and China - although all three have extremely high rates of violation. Seemed to offer the perfect counterpoint to the insistence of the MPAA that piracy rates high automatically lead to the destruction of all forms of film industry. In fact, research has also shown that the amount of piracy in Nigeria was in fact a large part of why Nollywood has been so successful. The ability to let "hackers" to distribute their movies in the most efficient way possible to say that the films were distributed throughout Africa and established Nigeria as the place to make movies.

course, as seen through the history of development of various industries, it is always

after aa the industries are established and fast growing current players want a sudden rise of intellectual property laws to trample a new competition. This is true in most of the history of intellectual property rights, and shows that these laws are not - as we are told - on creating incentives to invest in these industries, but rather to maintain competition and the creation guards lock things for established players. The same thing is happening in Nigeria as well, as there have been new efforts to stop the offense, despite being so central to the importance of the emerging industry.

Although we covered this before, Eric Crampton points our attention to a new research paper that looks further into this story:

The Rise of Nollywood: designers, contractors, and Olufunmilayo Arewa Pirates. Covers much of the earth as our previous reports, first highlight the usefulness of the offense on the establishment of industry - that appears to employ more people in Hollywood. In fact, the most surprising is that while many developing countries focus on government subsidies, insisting that it is the only way to build a local film industry, almost no government support in Nigeria, However, the industry is much larger than comparable countries:

The increase of the film industry in Nigeria goes against trends in the film industry in developing countries, which produce 1.2 million per film capita per year, within developed countries, the production of films of 6.3 per million population per year. At current levels of production of Nollywood, Nigeria produces about 6.7 movies per million population per year. Narrowing the gap film production in developing countries remains a challenge, especially since the best ways to create national film industries remains difficult in many cases.

Before the proliferation of Nollywood films, at least one commentator suggested that the government takes the movie industry would be the only means by which Nigeria could develop a film industry.

note that although many countries have tried to encourage particular types of film production through a direct government funding, grants or protection schemes on the film titles of films, many of these industries have not been commercially viable without subsidies or other support programs.
In contrast, Nollywood has created a large amount of local video movies with virtually no government involvement and subsidies. Nollywood's success in many ways may be due to lack of participation of government and its decentralized nature, allowing participants to be very enterprising Nollywood, adaptable and innovative. Nollywood can now employ over 200,000 people directly with estimates of indirect employment of up to 1 million. The market-oriented approach of Nollywood is cheaper than existing models of production and distribution of films and can provide a new model for developing countries wishing to develop national film industries.
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