Tanzania Film Value Chain Report

ISSN: 1821-9624 Volume 2, Issue 1

CULTURE AND DEVELOPMENT EAST AFRICA

Tanzania FILM V A L U E

C H A I N

R E P O R T

Contents

1.0 2.0 3.0 4.0

5.0

6.0 7.0 7.0

Introduction............................................................................................................................................. 2 Value Chain Analysis............................................................................................................................. 2 Study Rationale....................................................................................................................................... 3 3.1 Research Methodology......................................................................................................... 4 Findings...................................................................................................................................................... 4 4.1 Background of the Film Industry in Tanzania............................................................4 4.2 Beginnings.................................................................................................................................5 4.2.1 Current Trends........................................................................................................................ 5 4.2.2 Opportunities........................................................................................................................... 5 4.2.3 Challenges................................................................................................................................. 5 4.2.4 Recommendation................................................................................................................... 6 4.3 Production.................................................................................................................................6 4.3.2 Opportunities........................................................................................................................... 8 4.3.3 Challenges................................................................................................................................. 8 4.3.4 Recommendations................................................................................................................. 8 4.4 Circulation................................................................................................................................. 9 4.4.2 Opportunities.........................................................................................................................10 4.4.3 Challenges...............................................................................................................................11 4.4.4 Recommendations...............................................................................................................11 4.5 Delivery Mechanisms......................................................................................................... 11 4.5.2 Opportunities........................................................................................................................ 12 4.5.3 Challenges...............................................................................................................................12 4.6 Audience Reception and Feedback...............................................................................12 4.6.2 Opportunities........................................................................................................................ 12 4.6.3 Challenges...............................................................................................................................13 4.6.4 Recommendations...............................................................................................................13 Main Recommendations for Improving Film Industry in Tanzania..............................14 5.1 Policy and Regulatory Framework.............................................................................. 14 5.1.1 Copyright Protection and Collection Systems......................................................... 14 5.1.2. Convergence of Internet, Broadcasting and Telecommunications.................14 5.2 Strengthening Institutions Responsible for Driving Action and Interventions............. 14 5.3 Education and Training.....................................................................................................15 5.4 Investment Opportunities for the Film Industry....................................................26 CDEA’s Support Role Based on Research Findings..............................................................17 Annex........................................................................................................................................................ 18 References...............................................................................................................................................23

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1.0

Introduction

Culture and Development East Africa (CDEA) is a Creative Think Tank that provides services to artists, cultural leaders, creative entrepreneurs, cultural of�icers and urban planners, development and corporate organizations, civil society organizations and academics in cultural development and development planning & implementation in Tanzania, and wider East African Region.

CDEA implements two programmes: Culture and Governance and Documentary and Future. The Culture and Governance Programme focuses on promoting inclusive or participatory governance in decision-making along the creative value chain as well as advocating for culture’s role in Sustainable Development by interweaving of cultural policies and other public policies.

The Documentary and Future Programme aims to enhance the link between our cultural heritage and modern culture through the arts and creative industries- printed word, music and �ilm.

Through its Film Lab, CDEA provides a service to upcoming �ilmmakers through the following areas.

• Hosting Pan African Film Critique Club • Holding scriptwriting and co-production workshops • Public screenings through Open Show Dar es Salaam • Providing a pathway for �ilmmakers to platforms such as the Zanzibar International Film Festival (ZIFF) platform and other digital platforms

With support from CKU-Danish Centre for Culture and Development, CDEA is implementing a two-year project titled ‘Research in Culture and Creative Industries focusing on the �ilm and Music sub-sectors contribution to creative economy in Tanzania and EAC Common Market’. Through this research, CDEA will generate data and information for the �ilm and music sectors through using the value chain analysis and mapping studies. CDEA hopes that the research �indings will contribute providing an enabling environment for investment in various steps of the creative value chain in Tanzania.

2.0

Value Chain Analysis

The Creatives industries Value Chain : where and how is wealth created 1. BEGINNINGS The idea, the context, the rich heritage, the project funds and �inance for development, promotion, recording and exhibition.

5. AUDIENCE RECEPTION Journalists, trade journals, festival commentary, awards, academies.

Training Development

2. PRODUCTION The people, the processes, the sites of productions, the facilities, the equipment and the supplies, the designers.

SME Support

4. DELIVERY MECHANISMS Exhibitors, broadcasters, retail outlients, live venues, performance spaces, gallery / exihibition space.

Regulation and Policy

3. CIRCULATION/ DISTRIBUTION Distributors. agents, marketers and intermediaries.

Core problems : Absence of business savvy, poor intergration with other economic sectors (tourism) lack of appropriate training and mentoring support speci�ically for arts and culture managers, administrators and programing staff, poororganisation, lack of clustering and inadequate networking.

A value chain is de�ined as a chain of activities that combine to create a product within a speci�ic sector. Products pass through the chain, gaining value at each activity. These activities can range from research and development, to manufacturing and packaging, marketing and distribution.

The point of analysing a value chain is to understand the role played by market participant, as well as their respective strengths, weaknesses, challenges and solutions to these challenges.

The cultural or creative industry value chain can be conceived as one in which the crea¬tor or artist begins with a creative idea which is then combined with other inputs to produce a cultural good or service that passes through stages in which value is added, until it reaches the consumer. Charles Landry, in his work for Comedia , modi�ied the �ive elements of the value chain developed by Michael Porter: product development, manufacturing, distribution, marketing and sales, and after-sales serv¬ices. He outlined the �ive-column model for cultural industries comprising beginnings, produc¬tion, circulation, exhibition and audience feedback.

The value chain approach has been useful in showing the relationship between the “pure” or traditional arts and commercial or industrialised arts and culture by seeing them as “stages” of the process in the production of economic and cultural value.

A typical �ilm c and a creative industry product pass through a number of stages as it gains its value. The �irst phase is focused on composition, conceptualization and business development. The second phase is concerned with production, while the �inal phase focuses on distribution of the product through publicity and marketing. According to Joffe and Jacklin( 2003) the creative value chain represented as a circular diagram to emphasises the importance of the feedback loop from “audience reception” to “beginnings”.

3.0

Study Rationale

In Tanzania the visibility of the Cultural and Creative Industries( CCI’s) is a big challenge because there is no data to elaborate the role players in the entire production chain and their value chain networks, their industrial organization and contribution in terms of employment, revenue and exports, indicators for development planning and monitoring as well copyright infringement.

Since there is no literature that explains all dimension of ‘the creative value chain’ of �ilm industry in Tanzania, this value chain analysis aimed to add to the body of knowledge of the Creative Economy in Tanzania by establishingthe current trends, opportunities, challenges, and recommendations of each stage of the �ilm industry value chain.

The study aimedto provide generic recommendations to improve the �ilm industry in Tanzania. In addition, the study aimed to provide a direction to CDEA on which areas to invest its capacity development services and investment to the �ilm sector.

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3.1

Research Methodology

The study was done in both qualitative and quantitative research methods.

Secondary research was done �irst to gather the current industry information before proceeding to the qualitative and quantitative phase. A total of 250 respondents were interviewed across 3 key towns: Dar es Salaam, Arusha and Dodoma. A semi-structured questionnaire was administered to each respondent across the towns. 15 In-Depth Interviews were also conducted.

These interviews were based upon key respondents only in the music industry who were interviewed in Dar es Salaam.

4.0

Findings

4.1 Background of the Film Industry in Tanzania Tanzania’s �ilm industry datesback to 1973 when the government under the ruling party – TANU took an initiative to develop �ilm in Tanzania by establishing Tanzania Film Company (TFC) to conduct the business of production, distribution and exhibition of �ilms. TFC went on to produce a number of educational �ilms such as Shabaha ya Twico, Somo Kasema and Kupeni Adui wa Haki. The year 1973 saw the �irst feature length �ilm Fimbo ya Mnyonge being introduced, which advocates the ideology of Ujamaa and self-reliance.

Due to poorly equipped �ilm production companies, most of these �ilms were processed abroad. Nevertheless, after the success of these �ilms, Tanzania later started to import more educational, love stories and action �ilms from abroad and showcased them in cinema halls. However, these �ilms had to be assessed by the then censorship board, National Film Censorship Board (NFCB). This then paved way to the rise of western actors such Jean Claude Van Damme, Bruce Lee, Sylvester Stallone (Rambo), Arnold Schwarzenegger and many more.

The emergence of contemporary Tanzanian �ilms started when the free market economy in Tanzania was introduced. This led to the emergence of local privately-owned TV stations such as ITV which emphasized local content. Many local dramas were broadcasted through ITV and in Kiswahili language. The use of Kiswahili aided the popularity of these TV shows thus accelerating the growth as well.

It was not until early 2000 that most of the people from the local dramas decided to venture to fully into �ilm-making thus making their own private �ilm companies. Pioneers such as Sultan Tamba and Chief AmriBawji were among the �irst people to introduce the contemporary Tanzanian movies which was later dubbed as “Bongo Movies”; a term used to describe Tanzanian movies.

Apart from the likes of KaoleSanaa group which was the breeding ground for many of these local �ilm producers, most local players in the �ilm industry were not formally trained. In fact, most of them were either self-trained or through learn through apprenticeship. This was one of the reasons that led to low quality �ilm production. Nevertheless, due to the intense audience reception for local content, Tanzanian �ilms started to gain popularity outside her boarders.

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Countries such as Kenya, Congo, Uganda, Rwanda and Burundi embraced these �ilms and henceforth participated in the growth of the �ilm industry in Tanzania. Film colleges have emerged over the years but �indings from a study carried out by CDEAindicate that about 48% of the �ilm makers that managed to get formal training have attained a certi�icate and majority are self-trained.

4.2 Beginnings

Beginnings are the �irst segment of the value chain. It refers to the ‘cultural milieu’ or context in which a television or �ilm production is conceived. Script writers are usually the �irst actors in the value chain.

4.2.1 Current Trends

“Find good script witers in Tanzania is very di�icult, this is due to few good �ilm schools” Amil Shivji, Film Maker

The industry is still informal and most the players in this stage do not have a formal education. Skills are mostly acquired through apprenticeship and knowledge acquired from friends. Due to this, the market is therefore �illed with cheap labour.

A typical scriptwriter is paid a fee of around USD 150 – USD 350. However, these fees may vary depending with the �ilm industry category. The �ilm industry in Tanzania is categorized into three categories; “Bongo movie”, mainstream �ilms whose players are more educated and ready to spend a lot on their �ilms and the short �ilms and documentaries done by �ilmmakers from the mainstream segments.

Currently, the infrastructure for �ilm production is underdeveloped and this has resulted in creation of narratives that are not rich with the history and heritage of Tanzania. There is therefore an opportunity for curriculum development for developing quality narratives for �ilm and television, casting, directing the overall post-production process in Tanzania and the region to meet this demand.

4.2.2 Opportunities

• A number of service support organizations in East Africa, such as MaishaLab in Kampala, provide technical support in the area of script writing, editing, costume designing, directing and production of the movie. Docubox, an East African Film Fund based in Nairobi offers training and funding for documentaries. Zanzibar International Film Festival (ZIFF) offers �ilm labs during the festival and has an outreach programme to showcase local �ilms in collaboration with CDEA • CDEA provides support through its audio-visual lab by hosting the Pan-African Film Critique Club, holding scriptwriting and co-production workshops and public screening through Open Show Dar es Salaam 4.2.3 Challenges • Many scriptwriters for instance lack the formal education resulting to poor scripts which hardly compete in the international scene. The players at this stage also lack the international exposure which would have given them an edge and creativity to compete

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• There are few �ilm-making training schools in Tanzania, most of them are start-up companies offering short courses. This is because most actors still have the belief that going to �ilm school does not guarantee you a position in the industry • The current available �ilm schools lack enough and good quality equipment.

This is also a contributing factor to the low enrolment of �ilm students

• The industry is subdivided into “Bongo Movies” and the mainstream “Swahiliwood”. The scriptwriters normally charge differently depending on the sector the producer is in. This makes it hard for one to have a one fee for their services • There are currently no guidelines on the nature of the contracts or the manner in which actors are paid. Actors have been complaining that they are told they are doing one �ilm but get astonished when they see the �ilm has Part I and Part II Film Producers in Tanzania are mostly concerned with cutting down the production costs.

They end up employing a person who would handle multiple of things.

- Daniel Manege, Film Maker

• Lack of legislation that protects scriptwriters and actors and �ilm makers from broadcasters

• Lack of appropriate infrastructure has led many international �ilm actors to choose South Africa as a �ilming destination. East Africa still lacks the infrastructure to cater for good quality �ilm production

• Graduates from the �ilm schools and colleges �ind it dif�icult to �ind jobs 4.2.4Recommendation

• There is need for professionalizing the �ilm industry through training on rights and obligations, technical skills, strengthening copyright management as well as regulation of the industry to curb piracy 4.3 Production

Production is the second segment of the value chain. It refers to the process whereby a product or service is produced. In the �ilm industry, the production process comprises different activities in respect of the production industry.

This includes rehearsing, as preliminary steps in the process, which can be referred to as pre-production.

4.3.1 Current Trends

The �ilm industry has been accused of producing �ilms that are half-baked.

Different factors contribute to this allegation. However, a key factor is attributed to the �ilm industry being dominated by unskilled cheap labour in almost all stages of the value chain. Most “Bongo Movie �ilmmakers aim at making huge pro�its and therefore encourage the existence of cheap labour that would also be utilized in other parts along the value chain.

Usually the script is given to a sponsor of the �ilm but most of the time the sponsor ends up owning reproduction rights. This is usually one of the major challenges in the “Bongo Movies” industry: it makes the majority of the �ilmmakers famous, but does not confer equal �inancial rewards for their labour.

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The �ilm producer then hires a production manager whose responsibility will not only be to manage the crew, but sometimes includes marketing the movie as well. Production managers are usually paid about USD 400 to USD 1500, if they will have to market the �ilm as well. To cut down the costs, �ilmmakers usually prefer such production managers. In the “Bongo Movies” industry however, the story is a bit different. The distributors who are usually the executive producers usually take the role of marketing the �ilm and distributing it. A lumpsum amount of money is usually paid to the �ilmmaker and the distributors take every responsibility thereafter. To increase sales, the �ilmmakers are forced by the distributors to produce a movie with two or more parts.

The local �ilm industry is characterized by lack of professionalism.

Recruitment is based on cronyism, popularity and talent rather than those quali�ied with the appropriate education. This has contributed to the making of poor quality production. In addition to this, taxation systems on importing �ilm instruments and equipment as capital goods has led to an increase in the prices of these instruments, The �ilm festivals in Tanzania are done in public spaces such as the NgomeKongweamphitheatre in Zanzibar or the Arusha International Film Festival. This limits the appearance of serious �ilm buyers and investors.

Better and advanced �ilm pitching venues are highly needed. The few serious �ilm makers fail to get the perfect venue to pitch their ideas or �ilms to the international market. This has hindered the growth of these �ilms and limited their consumption to the national market.The Tanzanian �ilm industry has been categorised in segments. The main two categories includes the so called “Bongo Movies” which is the most popular due to the fact that it is easy to access and cheaper but often haspoor quality of production and the mainstream �ilm popularly known as “Swahiliwood” which is hard to access and is more expensive to purchase.

The production costs of these categories also differ with “Swahiliwood” �ilms being expensive to produce. The graphs below highlights the production cost of both categories.

Film Production Cost

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Figure 2: Production costs of a �ilm in Tanzania Tanzania Film Value Chain Report | 07

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The above �igure shows the production cost to the �inal product. It is dif�icult to get other costs since the cost of a �ilm highly depends on the size of the �ilm and budget. Most producers use the production manager as their marketing and sales personnel as well. The �igures again differ in regards to the sector one may be. For instance, the “Bongo Movie” costs may slightly differ to short �ilms and documentary �ilms. “The Bongo Movies” �ilm makers normally aim at achieving super normal pro�its regardless of the �ilm production quality. To achieve this, cheap and unskilled labour is what is normally used. Unlike the mainstream �ilm makers who are willing to pay to up USD 2500 for a script, who still believe in high quality production with the main aim of exporting their work to the outside world.

“The problem is, do the �ilm makers really want the �ilm workshops or do they need them.

Very few turn up in workshops” - Dr Vincensia Shule, Lecture FPA

The emerging digital world is being favoured by many �ilm makers. They see it as a better way of distribution and communicating to their clients. The fact is that not many �ilm makers have agreed to bene�it from the online digital platform, they still tend to use it a source of communication rather than distribution and production channels. Very few �ilmmakers own �ilm production equipment. Most still rent during production and due to small market option, they end up renting low quality production equipment.

Due to high production costs, most of the �ilm producers ask for �inancial assistance. In the process they end up selling their �ilm ownership rights to these sponsors, who are often distributors.

4.3.2 Opportunities

• Investment in providing high quality �ilm equipment for hire could boost good international quality productions. According to the Tanzania Investment Guide (2014), the broadcasting sector presents plenty of investment opportunities, such as: • Establishment of television production companies.

• Creating mainstream television programs for international market.

• Provision of local content television channels for local market.

• International and regional grants for producing �ilm e.g. EU-ACP grants, Docubox for documentaries 4.3.3 Challenges

• Lack of appropriate infrastructure has led many international �ilm actors to choose South Africa as a �ilming destination. East Africa still lacks the infrastructure to cater for good quality �ilm production. Graduates from the �ilm schools and colleges �ind it dif�icult to �ind jobs as the available infrastructure is not really suf�icient. To invest in establishing this infrastructure may be a great start • Piracy has been the prime challenge to the creative industry, �ilm included.

The market is full of pirated copies of the local �ilms • There are also limited �inancial instruments to enable �ilmmakers to access credit to invest in the productions as the �ilm industry is still considered a risk.

• Most players in the �ilm industry are ready to use the cheapest option to make a �ilm in order to maximize on pro�it • Lack of capital to run a �ilm production company as well as owning the �ilm Tanzania Film Value Chain Report | 08

• Dif�iculties in tracking sales and revenues • Lack of government assistance to sustain available �ilm festivals and create new ones 4.3.4 Recommendations

“Festivals as the ZIFF are good platforms to screen our local �ilm. We however need to advance them” - Prof Martin Mhand, CEO ZIFF

• Provide an enabling environment to attract investment in the production stage of the �ilm industry value chain domesticating the East African Creative Industries Bill that was passed by the East African Legislative Assembly on August 25, 2015. This bill calls for tax exemptions for equipment machinery and material for construction of facilities for audio-visual production and motion picture production, as well as off-setting approved capital expenditure on such facilities against income derived from the audio-visual and motion industry of a period of 10 years commencing the year following the completion of the facilities • The bill calls for providing tax rebates to private sector companies that provide grants to the �ilm sector 4.4 Circulation

Circulation is the third segment of the value chain. Iyrefers to the process of distributing and marketing the product in the market place. Circulation involves actors such as �ilm buyers, exporters and importers of international products who focus on the distribution of imported products often under license from international companies. Wholesale distributors sell to hawkers and small retail outletsthrough informal trading networks.

4.4.1 Current Trends

In countries such the United Republic of Tanzania where the market is primarily performance and/or piracy-driven, the legal circulation networks for �ilms is weak and marketing and publicity rarely happen, although intricate circulation networks have been developed for parallel processes.

The mainstream �ilmmakers or rather the “Swahilihood” as they are referred to, usually circulate their movies themselves. Upon completion of their movies, this category usually is able to consult with the various development partners and are able to screen their �ilms with these partners. The “Bongo Movies” on the other hand rely on others to distribute their �ilms.

By this time, most of “Bongo Movies” �ilmmakers �ind themselves having lost the ownership of �ilms therefore do not really follow up on its circulation. The best distribution channel is still a key question.

Filmmakers prefer the cinemas and shows even though it is uncommon in Tanzania. The most common form of distribution today is the local merchandisers and the broadcasters... Video on Demand (VoD) is a system that allows users to select and watch video content when they choose to, rather than having to watch at a speci�ic broadcast time. This could be one way of promoting distribution of the �ilm industry in Tanzania, and bypassing the monopoly of two DVD distributor companies, who use hawkers to reach the market.

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According to the study, broadcast media is the major channel of distribution in Tanzania. With the onset of the digital switch by the Tanzania Communication and Regulatory Authority (TCRA) that entailed the end of analogue broadcast, broadcasting has improved in signal quality and increased the coverage area. Digital TV also offers broadcasters a wide range of tools to deliver content as well as the ef�icient use of bandwidth. This means the burden is on the content producers to deliver more local content to feed the various available television channels in Tanzania. However, this does not mean scriptwriters and producers should compromise of quality to meet the market demands.Through the current circulation mechanism, the country has managed to distribute vast numbers of her �ilms both within and outside her boarders. .

“The TRA has done a good job in introducing the stamps, but internet usage is increasing more and more.

Stamps are yet to apply here.”

- Dr Vincensia Shule, FPA Lecture

According to a study on Economic Contribution of Copyright Industries by WIPO, in 2007 - 2010 the copyright-based industries, of which �ilm and music are a signi�icant part of, generated an added value of between TZS.391,635 and TZS.680,990 billion. This translates to a contribution of 3% - 4.6% to the GDP. They also generated TZS.38,930 billion and TZS.83,686 billion as income to employees, or a proportion of 2.8% and 5.2% of the total national economic value and until 2015, Tanzania Revenue Authority (TRA) has managed to collect a total of TZS 17,365,165,754.00 on �ilm and music alone from tax stamps on tapes.

These �igures however, may not be showing the true state of the industry as data are minimal. Seeing the boom in Tanzanian �ilm one would assume the industry is doing a lot better �inancially. However, reports coming in tell a different story in terms of �inancial numbers.

COSOTA, working under the Ministry of Industry and Trade, has been given the mandate to combat piracy. However, its operations seem to face numerous limitations and potential con�licts. For example, local distribution companies have been accused of being part of the problem. According to the Distribution of Sound and Audio-visual Recordings Regulation of 10th February 2006, COSOTA together with the Police and other stakeholders of copyright issues have managed to conduct Anti-piracy operations across the country and managed to seize various equipment which were used in production of pirated works such as computers, printers, scanners, duplicating machines, paper cater, CD maker, VHS player, DVD players DVD ROMs, Inlays, compact disk, microphones and speakers and different pirated CD/DVDS and VHS. Those operations have been conducted across Tanzania seizing 65,072 pirated works in the form of DVDs, VHS’,VCDs and CDs. 4.4.2 Opportunities

• The emerging digital platform is another preferred form of distribution by �ilmmakers. Companies from the digital world have also emerged to assist in �ilm distribution. In 2013, corporate digest published an article of a U.S. online-based company, Blue Sky Media,that was ready to offer a worldwide distribution service of local movies across ITunes, Microsoft, YouTube, RAIN, and other global platforms. Such services intend to ease the distribution process across the industry and ease access of the �ilms • Digital migration in Africa has provided a demand for content on the various channels Tanzania Film Value Chain Report | 10

4.4.3 Challenges

“The TRA has done a good job in introducing the stamps, but internet usage is increasing more and more.

Stamps are yet to apply here.”

- Dr Vincensia Shule, FPA Lecture

• COSOTA’s operations seem to face numerous limitations and potential con�licts. For example, local distribution companies have been accused of being part of the problem. The distributor buys the rights of the �ilm from the �ilm makers so in turn the �ilm makers put in a little effort to �ight piracy as they feel that the �ilms are no longer there problem • Broadcasters in Tanzania do not buy broadcast rights from �ilmmakers but require �ilmmakers to �ind an advertiser before they can get airtime • A key challenge in distributing local �ilms via online platforms is that watching �ilms using methods like Video on Demand (VoD) has not yet been tapped into by Cable TV companies in Tanzania. It is only Multichoice that offers an opportunity for one to rent a movie • The �ilm industry is faced with stringent regulationswhich are a barrier for �ilmmaker wishes to export their �ilms or invite an international �ilm maker to screen their �ilms. This is characterized by the high taxes imposed on the �ilm making process. Due to this, the industry is �illed with pirated copies since the black market has a way of evading these taxes.

• The black market makes it even harder for these authorities to track sales. Tanzania Revenue Authority (TRA) has decided to put stamps on the hard copies of these �ilms as a way of tracking sales. The stamps do not apply to �ilms sold via the internet or the growing pirated copies. With the current little information regarding these �ilm copies, the TRA has a huge cliff to climb to ensure maximum collection on these �ilm products.

4.4.4 Recommendations

• Need for �ilm associations do advocate for conducive regulations to ensure broadcasters enumerate them for airing local �ilms • There is need to promote digital distribution of �ilms for Tanzania and East African markets that is legally protected • Need for �ilm associations to create awareness to their members not to relinquish their copyright to distributors • Need for a mechanism the will monitor distribution of �ilm through the broadcast media in East Africa • Need for the Copyright and Neighbouring Rights Act, No.7 of 1999 (CAP 218 RE 2002), to be amended to include a sample contract for �ilm producers and distributors 4.5 Delivery Mechanisms

Delivery mechanisms are the fourth segment of the value chain. This refers to are those structures that make �ilms available to the market, thereby laying the foundations for returns on investment. The delivery mechanisms range from retail, broadcast and festivals and cinemas.

4.5.1 Current Trends The Tanzanian market has proven to be willing and able to buy �ilms compared to many other African markets. In�lux of pirated Tanzanian �ilms is a sign that the market is willing to buy �ilms. Even though Tanzania has been producing a lot of �ilms lately, second after Nigeria’s Nollywood in Africa, the �ilmmakers have been able to get a slice of the cake from the market especially in East Africa and the Tanzanians in the diaspora.

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4.5.2 Opportunities • The Tanzania diaspora market in an incentive for r exploring digital distribution platform for �ilms • Opportunity to develop content for technology products e.g. Smart phones 4.5.3 Challenges

• There are few screening venues in Tanzania. The available venues are still in a form ofamphitheatres, old structures and few arts spaces. It has proven to be very costly if a �ilmmaker decides to screen their �ilms in the high-tech movie theatres • Digital �ilm distribution is still not well utilized. Even though the digital world is growing, the �ilm makers are yet to use this opportunity.

Tanzania has no websites that are willing to distribute their �ilms via the internet 4.5.4 Recommendations

“Feedback ? What ways do we reach the likes of J.B” - Film Consumer

• Need for investment in modern audio-visual production infrastructure and cinemas • Need for copyright management using technology to monitor and track the consumption of �ilms online and remitting of royalties to artists on an annual basis 4.6 Audience Reception and Feedback

Audience reception and feedback is the �ifth segment of the value chain that refers to the response from audiences to the television production feature �ilm, which feeds into the beginnings or cultural context for new ideas. Audience reception and feedback also allow for the reformulation of investment strategies on the basis of audience responses.

The nature and scale of the market also in�luence audience reception.

4.6.1 Current Trends

The few serious �ilm makers fail to get the perfect venue to pitch their ideas or �ilms to the international market. This has hindered the growth of these �ilms and limited their consumption to the national market. There are few platforms for �ilm critiquing, which a key factor for feeding into the creation stage of new �ilms 4.6.2 Opportunities

• Zanzibar International Film Festival, Arusha African Film Festival, Uganda Film Festival, Burundi Film Festival, Kenya International Film Festival and the Slum Film Festival both being from Kenya instrumental in enabling audiences to see new �ilms. These multi-cultural and trans-regional festivals have an auspicious role to play in developing new markets for local and regional artists and their products across the region and enhancing mobility of the �ilm players across the region Tanzania Film Value Chain Report | 12

• Existence developing partners interested in impact investment in the creative industries and Art for Social Change 4.6.3 Challenges

• Filmmakers from Bongo Movies get limited feedback from e �ilm critics and consumers’ feedback regarding their �ilm and this dwarfs the development of the �ilm industry • The �ilm festivals in Tanzania are done in public spaces such as the NgomeKongwe amphitheatre in Zanzibar or the Arusha International Film Festival. This limits the appearance of serious �ilm buyers and investors • Consumers have very little information on which product is genuine and which is not. Most of the consumers end up purchasing pirated �ilm products without the knowledge. The few who are aware tend to purchase the pirated products claiming that the genuine products are expensive and the quality is all the same 4.6.4 Recommendations

• Develop the pitching infrastructure so that �ilmmakers can attract Angel investors and Venture Capitalists to expand teasers into longer feature �ilms to be marketed to digital TV channels.

• Need for COSOTA to create awareness to consumers nd �ilmmakers on the bene�its of purchasing a genuine �ilm product • 4.7 Key Actors and Value Addition in the Film Industry

Figure 3, shows the value added across the value chain in a typical �ilm value chain. The values are obtain after looking the costs of production at each stage and comparing it with what the players in the stages along the chain.

The general public being the �inal consumer of the product is the ultimate receiver of all the costs. Production, at 60% is the most valued stage of the value chain while broadcast distribution at 10% is the least valued stage in the chain.

Creation

Script Writers, Composers 10% Production

Managers (Crew, Production, Location, Lights, Editors, Graphics, Sound) Sponsors, Producers, Actors, Sound Engineers, Graphics cre - 60% Delivery Mechanism Merchandisers, Distributors, Marketers, Artists - 20% Distribution Film Theatres, Broadcasters (TV, Regional Buses), Internet - 10%

Audience Reception General Public 100% Figure 3: Key players in the Film Industry Creative Value Chain and Value Added Tanzania Film Value Chain Report| 13

5.0 Main Recommendations for Improving Film Industry in Tanzania 5.1Policy and Regulatory Framework Legislative and policy issues impact the performance of the value chain in different contexts. In Tanzania, signi�icant attention needs to be given to setting up a supportive policy frameworks, which will promote�ilm business education, economic support for �ilm production and provisions for local content regulations of broadcasting.

In addition, when the proposed East African Community Creative and Cultural Industries Bill 2015is enacted into law, the government of Tanzania should domesticate it as national law. This isbecause the Bill proposes tax emption for investors in audio-visual sector, which can only come into force when integrated in legislation and regulations governing of the �ilm industry in Tanzania. Speci�ic policy and regulations that need to be addressed include: 5.1.1Copyright Protection and Collection Systems

“If our Goverment worked more close with the artist, I believe it would have a better impact on the industry.”

- Film Consumer

In December 2005, Rulu Arts Promoters, with support from BEST–AC carried our research and advocacy aimed at amending Tanzania’ Copyright and Neighbouring Rights Act, No.7 of 1999 (CAP 218 RE 2002), to give more authority to institutions aimed at enforcing copyright protectionthrough legislation.

There is need for a copyright management body for the �ilm industry, just like the Copyright Management East Africa (CMEA), that will monitor airing of music throughbroadcast media in Tanzania and East African region.

There is also need for awareness creation of copyright protection and collection systems applicable in the artists’ respective countries of origin, as well as in those regions where artists’ intellectual property is distributed.

5.1.2. Convergence of Internet, Broadcasting and Telecommunications

Digital media provides the opportunity for the convergence of internet, broadcasting and telecommunications that creates an opportunity for services such as Video-on-demand and YouTube Videos. According to Andrew Fraser, the former head of Sony Mobile South Africa, “Internet streaming is a serious competitive threat to broadcast television in South Africa, but the technology is hamstrung by cost challenges,” as quoted by Balancing Act, an analytical report on telecoms, internet and broadcast in Africa. In Tanzania and East Africa streaming technology is still a challenge because of the cost of data is high. If telecommunication companies in Tanzania and East Africa lowered the cost of data, then internet streaming would become a viable competitor to broadcast television. This would also become an enabler for �ilm reaching wider audiences. This is areaof policy advocacy for �ilm industry stakeholders with the TCRA that regulates tariffs for telecoms.

5.2 Strengthening Institutions Responsible for Driving Action and Interventions

There is need to address the capacity needs of the �ilm industry through a multi-stakeholder process. In Tanzania, the drivers of change for the �ilm industry are:

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• Government actors (provide an enabling environment through policy and legislation issues, as well as taxation systems); • Producers • Film Makers • Collection and intellectual property organizations (TRA, COSOTA and COSOZA) • Film associations and unions such as TAFF, EAFN, TFB,BASATA • Broadcasters • Training institutions involved in �ilm education and/or business education 5.3 Education and Training

Enhancing the skills base of actors and stakeholders along the �ilm value chain could seek to achieve the following targeted objectives:

• Institutional support actors The �ilm industry in Tanzania is in need of �ilm industry’s support professionals such as managers,lawyers, and �inancial advisors, who are equipped with suf�icient industry-speci�ic knowledge to interact meaningfully in the process of negotiating contracts and sourcing �inancial support. Industry knowledge entails a sound understanding of the copyright protection framework and practices, payment structures and �inancial relationships between the different actors in the production process.

Training for managers would also need to include basic management aspects such as fundraising, negotiation, coordination and administrative processes.Training artists to manage their careers effectively and professionally will enable the artists that comprise the creative basis of the �ilm industry (script writers and �ilm makers) to be better equipped to manage their careers, in the absence of existing management actors.

A strong emphasis could be placed on basic �inancial administration and management skills (from writing up invoices to developing personal �inance cash �lows, applying for funding from commercial and non-commercial institutions).

For sustainability, �ilm educators should also have a training of trainers’ course on various aspects of the industry, so that they could – in turn – impart this knowledge to their students.

There is also need for capacity development to build institutional coordinationamong �ilm industry stakeholders such as relevant government sector departments (departments of trade and industry, culture, education and labour); as well as developing and sustaining partnerships with non-governmental and industry actors from the Tanzania �ilm makers’ federations, lending institutions and informal sector workers e.g. hawkers The public also needs consumer education on the value of purchasing legal products and, conversely, of the quality risks involved in purchasing pirated materials would also need to form part of training initiatives.

• Developing localized, industry actor-speci�ic business growth strategies There is a need for the �ilm sector in Tanzania to come up with business strategies that take into account the national, regional and global trends for the music sector as well as the business environment in Tanzania.

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• Establishing a facilitative framework for industry growth An additional intervention is also needed to ensure that the context in which industry actors and stakeholders operate is an enabling one. The role for de�ining and implementing these measures is one where governments should take the lead. To ensure the sustainability of such a process, extensive participation with industry actors and stakeholders would need to occur. Interventions could include: • Setting up an enabling environment for industry growth: This may include enabling access to music infrastructure and business incubators, facilitating access to import permits for music equipment and provision of tax and VAT exemption on �ilm equipment may also be considered.

• Discovering local productions and promoting audience development: This can be done through competitions broadcast through the mass media.

“We currently rent or buy �ilms from the local vendor, it would be nice if we could access these �ilm via the net so we won’t have to pile our houses with so many �ilms” - Film Consumer

• Regulatory bodies’ coordination: There should be coordination between government sector departments (departments of trade and industry, culture, education and labour) and National Bureau of Statistics so that they can work to achieve common objectives for the growth of the industry in the region and in its respective countries.

• Intellectual property and rights management: There is need for revision of Copyright and Neighbouring Rights Act, No.7 o f 1999 (CAP 218 RE 2002) to strengthen the institutions that can curb legal reproduction and/or distribution of music products.

• Local content: Need to ensure that promotion of local content through the broadcasting systems and digital channels, as a result of digital migration, does not mean exploiting the composers and musicians.

5.4.Investment Opportunities for the Film Industry

As proposed by Tanzania Investment Authority (TIC), a priority, to be given to the broadcasting sector which presents investment opportunities, such as: • Establishing television production companies.

• Creating mainstream television programs for international market • Providing local content television channels for local market In addition, to investing in the proposed areas by TIC, investment in professional production warehouses, festivals, technical capacity development such as screenwriting, acting, production, directing of �ilms and marketing local �ilms to international markets will ensure the �ilm industry thrives by a sustainable system of creating quality narratives.

It is therefore critical for investment to also target the creation stage of the �ilm industry.

Given the amount of broadcasting players in addition to the nature of products, this sector offers an attractive opportunity for further investments.

There is need for policy makers and business leaders to integrate and nurture the social cultural space to enable youth development and advancement of enterprise through investing in the �ilm industry.

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6.0 CDEA’s Support Role Based on Research Findings CDEA will continue to provide its services to �ilm stakeholders in the creation, production and distribution stages of value chain.

Beginning stage • Hosting an audio-visual incubator for �ilmmakers - Holding scriptwriting workshops - Providing a platforms for �ilm critiquing through the Pan-African - Critique Club and Open Show Dar es Salaam activities - Collaborative training and screening activities with �ilm actors such as Docubox in Nairobi and ZIFF in Zanzibar.

- Small grants for production of short �ilms Production stage - Production of short �ilms

Circulation/Distribution stage - Distribution of short �ilms

•On going research and advocacy in the �ilm industry • Setting up infrastructure for arts development and the performing arts • In partnership with selected East African arts organisations will set up an East Africa Arts Organisations Endowmment Fund that will also invest in the production of short �ilms in Tanzania.

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7.0 ANNEX A : SAMPLE QUESTIONNAIRE A

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ANNEX A : SAMPLE QUESTIONNAIRE B

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SAMPLE DISCUSSION GUIDE

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8.0 References EAC (2015), The East African Community Creative and Cultural Industries Bill, 2015

Joffe and Jacklin (2003) International Labour Organisation research in the Southern African Development Community (SADC) region Landry, C. (2008)The Creative City: Earthscan, London

Nyariki, D. et al., WIPO The Economic Contribution of Copyright-Based Industries in Tanzania, 2012, pg.29

Porter, M. (1995) Competitive Advantage: Creating and Sustaining Performance: The Free Press Wallis. B at al (2001), Best practice cases in the music industry and their relevance for government policies in developing countries http://www.corporate-digest.com/index.php/�ilm-makers-in-tanzania-to-have-direct-access-to-itunes-and-microsoft

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Report Prepared by CDEA-Culture and Development East Africa Postal address: Plot No. 421, House 1001, Mikocheni B, P.O Box 13355, Dar es Salaam, Tanzania Landline:+255 22 2780087 Email: secretariat@cdea.or.tz cdea.tanzania@yahoo.com We welcome donations through this email: cdea.tanzania@yahoo.com www.cdea.or.tz

This report has been made possible with support from CKU –Centre for Culture and Development