Economics of Audiovisual Production in a Glocalized Digital Media: Clues, Theories and Perspectives from Nollywood

Abstract

This paper examined economic trends of audiovisual production in the globalized digital media landscape with reference to the Nigerian film industry (Nollywood) as a paradigm of local creative economies in contact with global distribution. Anchored on the theoretical frameworks of Media Economics, the Long Tail Theory, and the Digital Generative Multimedia Tool Theory (DGMTT), the study adopted a critical approach in assessing the efficiency-sustainability gap, in which democratization of production tools has not yet ensured the financial stability of independent producers in emerging markets. The research employed a sequential explanatory mixed-methods methodology, combining primary quantitative survey data collection and statistical modeling performed by the authors with qualitative Key Informant Interviews (KII) conducted with 15 industry stakeholders, including grassroots independent producers, studio executives, and media economists. Inductive analysis of the qualitative data showed a decisive transition of the traditional models of the public good to the hybrid direct-pay systems (SVOD and AVOD) that are based on personalised consumption. While the primary quantitative stream established a statistically significant correlation between digital distribution platform adoption and gross revenue metrics, the subsequent qualitative stream directly elucidated these results by showing how structural barriers modify net profit margins. The study empirically justifies the DGMTT and proves that the combination of Artificial Intelligence and generative automation has a significant impact on marginal costs and production schedules, providing a verifiable route to economic sustainability. Nonetheless, local creators are confronted with a dilemma of platform imperialism as international streaming corporations offer exposure but enforce algorithmic logics which can marginalise the cultural differences of localities. It is concluded that the future of audiovisual production in Nollywood lies in a paradigm shift towards knowledge-heavy production and formalisation of industry structures in order to fill the gap between cultural reach and economic viability.