As debates continue over whether Nigerian filmmakers should abandon cinemas and release their films on YouTube, filmmaker Benneth Nwankwo says the argument ignores a basic fact: cinema films and YouTube films are built on completely different business models.
He made this known in a Facebook post on Saturday, reacting to growing conversations around what many have described as the “cinema battle” in Nigeria and suggestions that filmmakers should simply move their films online instead of struggling with theatrical releases.
“Following the cinema battle in Nigeria, a lot of people are now saying filmmakers should put their films on YouTube instead of fighting the cinema battle in Nigeria,” Nwankwo said. He added that he was recently told that some filmmakers, including Omoni Oboli, are releasing films on YouTube, raising questions about why others cannot do the same.
Addressing that comparison, Nwankwo said YouTube remains a strong platform but warned that it is not suitable for filmmakers working with large production budgets. “First of all, YouTube is a great platform, but it is not exactly a great platform for filmmakers who work with high budgets,” he said, noting that films made specifically for YouTube follow a very different cost structure.
Drawing from personal experience, he explained that he understands YouTube economics because he has been active on the platform for years. According to him, his series, Class of Secrets, has recorded over one million views, giving him firsthand knowledge of how revenue is generated on the platform and what filmmakers can realistically earn from it.
Nwankwo explained that most films are developed with a specific platform in mind, and budgets are structured around that decision. He said a film produced for cinema cannot be compared financially to one produced for YouTube. “If you are making a movie for cinema, the budget is not the same as the budget for a YouTube film,” he said, adding that a cinema film that aims to compete properly would cost no less than ₦100 million.
He questioned the logic of taking such an investment straight to YouTube, saying, “So imagine spending 100 million naira to make a film and then putting it on YouTube. It will take a miracle to make back that money through YouTube alone.” He said this reality explains why filmmakers who operate at that level do not rush to release their films online.
According to him, the first plan after completing a cinema film is usually a theatrical release, with the hope of recovering at least part of the budget. However, he stressed that even cinema earnings are limited for filmmakers. He said filmmakers typically receive only between 30 and 35 percent of cinema revenue, while the rest goes to cinema operators and deductions, including taxes paid to the Federal Government of Nigeria.
“So when you see a film making billions in the cinema, do not think the filmmaker is counting all that money,” he said. Nwankwo explained that if a film performs well in cinemas, the next stage is distribution and licensing. He noted that global streaming platforms such as Netflix and Amazon Prime may offer licensing deals lasting between two and three years.
He explained that such deals can be exclusive or non-exclusive, with exclusive agreements limiting the film to one platform, while non-exclusive deals allow filmmakers to explore additional distribution channels. From these deals, he said filmmakers may earn between $10,000 and $50,000, depending on negotiation strength and film performance.
Nwankwo added that African-owned streaming platforms often offer smaller deals, typically ranging from $5,000 to $30,000. He said filmmakers may also explore other channels such as airlines, hotels, and television stations to recover more money before a film becomes less commercially valuable.
He explained that YouTube usually becomes an option only after all these distribution windows have closed, sometimes years later. As an example, he pointed to Kunle Afolayan, who released October 1 on YouTube more than ten years after its initial run. He said the film had already earned revenue through multiple channels before YouTube became the final window.
Nwankwo noted that this approach applies mainly to cinema films and cited Funke Akindele as another example. He said Akindele does not release her high-budget cinema films on YouTube, even though some of her projects, such as Jenifa’s Diary, were designed for platforms where the budget matched expected returns.
Explaining YouTube earnings further, Nwankwo said Nigerian-based views typically generate between $0.47 and $10 to $12 per 1,000 views, depending on factors such as viewer age, location, watch duration, retention rate, and ad engagement. He said skipping ads reduces revenue, while ad clicks increase it.
Using a basic calculation, he said a filmmaker who spends about ₦5 million on a YouTube film would need at least one million views to break even, assuming a reasonable RPM. “That is just to break even, not to profit,” he said, questioning how filmmakers could expect to recover ₦10 million, ₦50 million, or ₦100 million budgets through YouTube alone.
He concluded that YouTube and cinema operate under different economic rules, requiring different strategies, budgets, and expectations, warning that using cinema budgets to chase YouTube returns would not add up financially.
