African films face distribution, revenue gaps despite strong demand – Study

…Report projects pay-TV, streaming market to hit $5.2bn by 2030 A new study has identified distribution challenges, limited financing and affordability constraints as major obstacles preventing African films from reaching wider audiences and generating sustainable revenue, despite growing demand for locally produced stories. The study, covering Egypt, Kenya, Nigeria, Rwanda, Senegal and South Africa, projects that combined pay-TV and streaming revenues across the six markets will reach $5.2 billion by 2030.

Titled Made in Africa, Watched Globally?, the report was commissioned by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the African Export-Import Bank (Afreximbank), through its Creative Africa Nexus (CANEX) programme, and produced by Dalberg. It examines film distribution, audience development, financing and the social impact of African films, drawing on 91 stakeholder interviews, a survey of 1,630 viewers across the six countries and five in-depth case studies.

According to the findings, although film production across the continent is expanding, distribution and monetisation have not kept pace with the growth of the wider market. The research also highlights the importance of compelling storytelling and production quality in attracting viewers. In Rwanda, 56 per cent of respondents identified a lack of interest in stories or themes as a reason for not watching local or African films, while in South Africa, 98 per cent rated acting quality as important when choosing films and 96 per cent said the same of plot and technical quality.

The report noted that audience preferences varied across and within markets, making more detailed audience data necessary to help filmmakers understand viewing habits, content preferences and willingness to pay. Distribution challenges The study identified difficulties in finding and accessing African films as another major constraint. In Kenya, 52 per cent of respondents said local and African films were difficult to find on mainstream platforms.

It recommended stronger audience-data systems to track viewing preferences, spending patterns and film performance across distribution channels, enabling producers, distributors and streaming platforms to make informed decisions on content acquisition, positioning and marketing. The report also identified YouTube as an important distribution channel, with 87 per cent of Kenyan respondents and 98 per cent of Senegalese respondents who stream films reporting that they use the platform.

However, it cautioned that audience reach does not necessarily translate into sustainable income for filmmakers, given relatively low advertising earnings and varying monetisation opportunities. The study also highlighted changes to YouTube’s eligibility requirements for new channels seeking advertising and YouTube Premium revenue sharing from February 1, 2027, noting that emerging African film producers would need to explore revenue models beyond advertising alone.

Infrastructure and affordability On physical distribution infrastructure, the report estimated that Africa has approximately one cinema screen for every 787,000 people, compared with one for every 8,700 people in the United States. It said cinema screens were also concentrated in major cities, with about 90 per cent of Egypt’s screens located in Cairo and Alexandria, while more than 75 per cent of Kenya’s fewer than 50 screens were in Nairobi.

Although mobile phones provide an alternative means of accessing films, the cost of internet data remains a significant barrier. The study estimated that 1GB of mobile data costs the equivalent of 3.1 per cent of monthly income across many African markets, above the global affordability benchmark of two per cent. It also cited a 2026 audience survey by South Africa’s National Film and Video Foundation, in which 31 per cent of respondents described data for watching videos as expensive.

To address the challenge, the report recommended advertising-funded services, offline downloads, video packages bundled with affordable data and payment options integrated with mobile money and telecommunications systems. It also urged industry operators to use audience research to develop pricing and viewing packages that reflect different income levels and consumer preferences.

Citing examples of accessible distribution models, the report said Senegal’s Marodi TV had built an audience of 8.67 million YouTube subscribers and generated 4.6 billion views through a free, advertising-supported model. In Kenya, platforms such as Viusasa had offered 24-hour subscriptions for between KES 10 and KES 20, allowing viewers to pay in smaller increments rather than commit to monthly subscriptions.

Financing gaps threaten industry growth Beyond distribution, the report identified a weakening financing structure for mid-budget African films, particularly the decline of platforms and aggregators capable of paying licensing fees and commissioning local produ