Friday, August 20, 2010

Obasanjo, Beachland Estate And Unbridled Corruption

President Olusegun Obasanjo since 1999 has said severally that his government will work relentlessly to curb the menace of corruption that has systematically led to the development of underdevelopment. In his maiden speech, president Obasanjo said nothing will be spared in the war against corruption, and that there will be no untouchables. But in the fight against corruption, the president that has presided over the affairs of NNPC since 1999, but has not explained the missing N311billion that should have been paid into the revenue account, and Nigerians are eagerly waiting to know what actually happened to the said amount. Secondly, it was reported that N84billion was missing in NPA, involving a bigwig of the ruling PDP, hence, the EFCC has been lily-livered to make public its findings since, the main dramatis personae is an alter-ego of the president, again, Nigerians want to know what really happened in NPA. Also, where is the N6.4billion that was collected for the controversial presidential library that is adjudged to be illegal?

Also, Chief Dan Etete, who recently came to the country to do some hatchet jobs for the president to smear the integrity and credibility of vice president Atiku Abubakar, in 2002, in some foreign newspapers published a very interesting rapacious and graft story about president Obasanjo, according to Etete, "Obasanjo must not hold the view that Nigeria have very short memory or that they do not care. How does he explain his attempts to dispossess his erstwhile friend, Chief Egunjobi, of the Beach Land Estate? In his first coming as Head of State, he claims he built the estate and on leaving office he took his former friend Chief Egunjobi to court and shamelessly proclaimed that he used the latter as a front. He did not tell the court, as Nigerians wanted to know, how he came by the money to build the estate. The court saw through him and struck out his law suit. Two issues immediately arose from the outcome of this escapade. The first is the serial nature of the activities which we believe reflect Obasanjo's corruption. Having claimed before a Nigerian law court the Estate belonged to him; he must answer the question as to where he got the resources to build it? His salary and allowances, while in office, are known to Nigerians. The court refused to be deceived and with him unwilling to declare the sources of the finance for the Beach Land Estate, the court made it clear he did not prove he owned the Estate. The other matter arising from this episode is the character of General Obasanjo is a covetous person. He must own what he sees and he sees and likes even if it means illegally dispossessing the rightful owner. It could have been he saw Chief Egunjobi's beach land estate; he liked it and therefore, wanted it. In his characteristic style, coveted it and Bingo, it had to be his. The only limitation at the time is that he forgot he was no longer Head of State. When it dawned on him, he wondered what to do, he chose the option of litigation, half forgetting there were judges who guard their integrity jealously in Nigeria." However, Obasanjo has since taken over the ownership of the contentious estate, but the fact remains, where did he get the money to build that massive estate?

In a similar development, a group called Nigeria Anti-corruption Collective has asked the president some very salient questions that bother on his crude acquisitive proclivities of the collective patrimony of the Nigerian people. The posers go thus, who owns Ajaokuta Steel Mills, Delta Steel Complex, Jos Steel Rolling Mills, Oshogbo Machine Tools and Itakpe Iron Ore Company? Who is deceiving whom? Who is the largest shareholder in UBA? Who bought out the shares of Akeem Bello-Osagie and threatened him with arrest and imprisonment? Who was the largest shareholder in First Interstate Bank Ltd, before the merger into Unity Bank? Who owns the majority shares in Virgin Nigeria? Who gave the airline special facilities at the international wings of our airports at the cost of N400million? Why does Virgin Nigeria not pay parking and landing fees and purchase aviation fuel at a discount, while at the same time competing in the same market with other local airlines? Why should one man set up Transcorp, devalue our national assets, obstruct free and fair competition and sell everything to himself and family? If not, why did Transcorp purchase almost the entire NITEL for $750million, when Globacom bidded $1.2billion for the same property? Not too long earlier, Vmobile sold a fraction of its shares for $1.2billion. How could all of NITEL with a vast net worth of digital exchanges, armoured cables, three international gateways, among others, sell for only $750million? This one man operates six farms in six states of the federation. What is the source of the funds for these massive investments? What is the deal between this one man with the owner of Mittal of India? Why the hurry in granting Block 246 to the Indian conglomerate? Is Nigeria for sale?

Apart from the numerous unanswered questions posed by the group above, the following questions have asked Mr. President, who is the real owner of Obajana cement factory? Who is the owner of Eleme Petrochemicals? Who has the largest shares in Arik Air? Why did the government sell the Nigeria Airway Hanger to this airline not through bidding, negotiation? Why did government allocate lucrative international routes to Arik Air even before it bought planes for operation, when other existing airlines doing very in the country were denied such a priviledge? Who are the people that import fuel into the country since 1999? Who has the largest shares in Transcorp? How was NICON HILTON HOTEL Abuja acquired by Transcorp? What is EFCC doing about the Israeli arms deal where some government official made about $100million for themselves? What is EFCC doing about the tokunbo presidential planes that were bought as new? Where is the report into the probe of COJA? Where is the report on Mantu, about he mismanaged the haji N400million funds?

The fact of the matter is that, until this questions are vividly answered we cannot claim to be fighting corruption, this is because, this are cases that concern the president directly and Nigeria wants categorical answers on them. It is also very important to point out that, the EFCC is the creation of the president, he appoints the chairman of the anti-graft body, he approves its funding, also, when cases are to be investigated it gets the nod of the president, in the same token, after investigations are completed, the findings and conclusions are submitted to the president for his perusal, in this type of situation, it becomes very difficult for the EFCC to do a very thorough job, it can not be in any way independent, it does what the president wants it to do, and what the president does not want, it will never do. It is in this regard that, EFCC has been aptly described as a tool in the hands of the president to deal with perceived political enemies in a dirty game of political intrigue and vendetta. And, without missing words, this is what has played out in the last few months with regards to EFCC investigation on the PTDF account, this is because, not only is the report lopsided, it is illogical, incoherent and does not add up. Therefore, it can be said that, the fight against corruption as been politized, which has made nonsense of all the attempts to rid the polity of the deadly scourge.

It is, however, very important that the president answer in full details all the questions asked and in the full glare of the public, in addition to this both public and private investigators should be asked to dig deep into the numerous disturbing and worrisome allegations against the president. The president has always carried on as if he is a saint, but in reality, he is no more than a sanctimonious wog, a lot of lip and eye services have been paid to the issue of corruption in Nigeria. Those who claim to be fighting corruption are more corrupt than those they claim are corrupt, and than this the bane of the country today.

By

Jide Ayobolu

jideayobolu@yahoo.co.uk

Thursday, August 5, 2010

Why Commercials Before Movies Is Worse Than Piracy

Being subjected to advertising is just something we’ve come to expect in our daily routines, and for most of us, we’ve become so conditioned to various advertising methods that we don’t even think twice about it. There is nothing wrong with advertising in and of itself. It’s how we learn about products, services and entertainment. Advertising is also the big main source of revenue for things we hold dear like television and The Movie Blog (which is 100% funded by advertising), so I’m certainly never going to rail on the evils of advertising.

However, advertising in movie theaters is a topic that has been brought up here on The Movie Blog more than a few times, and a recent report by the Cinema Advertising Council in the New York Post begs us to once again revisit the issue. We’ve all figured that commercials playing in movie theaters was worth a lot of money… but did you realize its worth almost HALF A BILLION DOLLARS? The IMDB gives us this:

Revenue from in-theater advertising rose more than 15 percent to $456 million from $395 million a year ago… The Post quoted CAC Chairman Cliff Marks as expressing the belief that moviegoers are becoming “more accepting” of screen advertising. A recent Arbitron poll indicated that two-thirds of moviegoers “don’t mind” the ads.

Don’t mind the ads? DON’T MIND THE ADS???

First, I should mention here that I don’t mind the idea of movie theaters making money. It’s a business. They exist to make money, and if they can find new creative ways to generate money then I say more power to them. If they can come up with new ways to get my money while providing me with some new service or product that I’m willing to pay for… then good for them.

Second, there are types of advertising in movie theaters I “don’t mind”. For example, if the movie is supposed to start at 7pm and I get into my seat at 6:45pm, I really don’t mind commercials and ads being shown on the screen until showtime. I’m just sitting there anyway, it’s not taking away from my time since the show isn’t advertised to start for another 15 minutes… so really… showing ads in that vacuum is no skin off my nose, it gives me something to look at while I wait, and it generates some income for the theaters. GREAT! It’s a win/win for everyone.

But you don’t have to have a degree in advertising to know that the bulk of that $456 million in ad money doesn’t come from those “pre-show” commercials. Oh no no no no… most of that money comes from the ads I LOATHE. The commercials (not trailers… I like those) that they start playing at the time they advertised the MOVIE was supposed to start.

I’ve said this before, but it’s worth repeating.

- When you take my money for popcorn, at least I’m getting a tasty treat

- When you take my cash at the box office, I’m getting to come in to watch the movie

- When you take my time for commercials on TV, I’m getting a “free” TV show out of it

But what are we getting for our time with commercials in movie theaters? When the ad says “Movie starts at 7pm” and I’m in my seat (that I paid admission for) at 7pm, it’s time for you to start giving me what I paid you for… the movie. If you want to show me commercials, fine… give me the movie for free then.

The theater industry is pulling in RECORD amounts of income from those commercials, and unlike TV (where we get a free show), WE GET NOTHING IN RETURN FOR OUR TIME SITTING THERE WHEN THE MOVIE IS SUPPOSED TO START.

Movie theaters have in essence found the PERFECT advertising. Ads that take to audiences time, without giving them anything in return.

I don’t mind theaters making money off me when I get a product, service or entertainment in return… but commercials playing at 7pm when you told me the movie would be starting is doing nothing but STEALING my time. You are taking from me without giving anything in return. HOW IS THIS DIFFERENT FROM ONLINE MOVIE PIRACY!?!?

When we download a movie without giving the movie industry anything in return, they call that a crime (and it is). But when the industry takes our time (sometimes up to 15 or 20 minutes) without giving us anything for that time in return they call it “smart marketing”.

How about I start calling pirating movies “Smart Shopping”. Will piracy be considered ok then?

Remember, YOU ARE GOING TO DIE SOME DAY. That means time has value, and when anything else in life takes your time, you get compensated in one form or another. Let’s think of it this way.

TIME

I see approximately 8 films in theater each month. At about 15 minutes of commercials per film (remember, these are ads that begin to play at the movie advertised start time), I end up spending about 2 hours per month watching ads in theaters uncompensated. That’s 24 hours, or a full day of uncompensated ad watching in a year.

MONEY

I’m not a doctor or lawyer, so let’s say my time is worth a measly $20/hour. Since I spent about 24 hours watching uncompensated ads in theaters last year, I figure the movie industry owes me about $480 out of that Half Billion they made last year off my time. Seems fair.

The principle for piracy and time theft is the same. Taking an asset (a movie, or your time) without providing the due compensation for taking that asset. So where do we start the class action lawsuit?

If you tell me the movie starts at 7pm, then when I PAY YOU to get into the movies, there is an implied contract that you give me what I paid for… a movie at 7pm. When you instead put up 15-20 minutes of commercials at 7pm you are stealing my time, and also stealing MY SHARE OF THAT $456 MILLION you made off my time.

So the next time you’re pirating a movie (which is neither something I do nor endorse), let that ease your conscience, because although you’re stealing the $10 you would have paid in admission… they probably owe you about $150 for stolen ad time anyway.

Economics Of The Movie Theater – Where The Money Goes And Why It Costs Us So Much

The attention and interest generated by the article I put up the other day on Why Commercials Before Movies Is Worse Than Piracy continues to generate a lot of discussion (and so the topic should). One of the recurring emails I’ve been getting from a lot of people is the question about why it costs so much to go to the movie theater(in light of the commercials and ad revenue the industry is making for itself), where does the money go and how do we make this stop?
Much of what I’m writing here now is a lot of paraphrasing from a chapter in my abandoned book project from a few years ago. But here’s the gist:

1) Who Gets What From Your $10 Ticket?
Ok, so you walk up to the box office and drop down your $10 to buy your ticket. Who gets that money? A lot of people assume (as did I at one point) that the movie theater keeps 50% of it, and the rest goes off to the studios. That’s not really true.

Most of the money that a theatre takes in from ticket sales goes back to the movie studio. The studio leases a movie to your local theater for a set period of time. In the first couple of weeks the film shows in the theatre, the theatre itself only gets to keep about 20% – 25% of the green. That means, if you showed up to watch Bridget Jones’ Diary on opening night, then of the $12 you put out for a ticket, the movie theatre only got to keep between $2.40 and $3.00 of it.

That’s not a lot of money, especially when you think about how much bigger and elaborate theatres are these days. It’s not cheap running one of these places. It can get even worse. This percentage will vary from movie to movie depending on the specifics of the individual leasing deal. For instance, 2 movie theatre managers told me that for Star Wars Episode II: Attack of the Clones, the studio took 100% of the box office take for the first week of release. Can you imagine that? They had to over staff and have above normal capacity flood into their theatres… and they got to keep $0.00 from the ticket sales. That almost seems criminal.

Now, as you move into the second and third weeks of release, the percentage starts to swing to anywhere from 45% – 55% that the theatre gets to keep. It gets better after the fourth week when theatres generally can keep up to 80% or better of the ticket sales. There is an obvious inherent problem with this arrangement. I don’t know about you, but when I finally get around to seeing a film that’s already been in the theatres for 4 or 5 weeks, I’m usually one of the only people in the place. It doesn’t do the establishment a lot of good to keep 80% of the ticket sales when only 14 tickets are sold per show. And with more and more and more movies getting released every week, the length of time that a movie stays in theaters is shrinking. Bad news for the movie theaters.

Movie theaters are then forced to really make their money off concessions. One theater manager said “We’re not in the movie business… we’re in the candy business”. Very true. So if you ever wondered why a $0.15 bag of popcorn is costing you $5, and a $0.08 cup of Coke is running you another $4… it’s because the economics of the industry system is so screwed up that the concession stand is where theaters have to make most of their money.

2) The Cost Of Making The Movies
With the cost of today’s movies getting higher and higher, the studios leverage their position with the theaters to squeeze more and more out of the arrangement mentioned in point #1. 10 years ago they weren’t paying Chris Tucker $25 million dollars for one movie… for 3 months work… a hack… CHRIS TUCKER… $25 million. Superman Returns did NOT need to cost $200 million to make. Spider-Man 3 did NOT need to cost $250 million to make. These numbers are astounding when you consider that just 7 years ago they would have called you mad. The pace of costs is far outpacing the requisite inflation… and there is really no excuse for it.

This is directly tied to how much you and I pay at the box office, and thus tied to why popcorn has to cost so much, and thus tied to why we see commercials. The higher the costs go for for making films, the higher my costs will be to enjoy a night at the theater. Sure, Transformers made tons of money… but the studios have to squeeze us for everything they can get to make up for their flops… their films that DON’T make money.

And people always wonder why I get so pissed off whenever I think about Chris Tucker getting $25 million. Because ultimately that money (at least in part) is coming out of my wallet.

3) The Organism of the Studio/Theater Relationship
To really make sense of all this, you have to step back and look at the Studios and the Theaters as one industry entity and view it from the perspective of how the parts work together to truly get a grasp on how big and out of control the problem is. You can’t just try to blame the Studios… nor can you just blame the Theaters. You have to look at them both (in this situation anyway) as one industry… how it functions… and ultimately how it affords its mistakes and inefficiencies at our expense.

The studios spend too much money making movies (and make too many movies), they squeeze as much box office revenue as they can from the Theaters thus forcing the theaters to charge us high ticket prices to make what little they can from each ticket, gouge us at the concession stand to make ends meet and show commercial after commercial after bloody commercial to pad some profit.

Do you see what happens? Look over #3 again. Ultimately, the studios don’t have to learn from their mistakes, theaters don’t have to manage themselves smarter… because as costs and losses and expenditure add up… they just keep passing off the bill to us. We pay for their mismanagement and spiraling costs. Why should they change anything or fix anything when they know that we’ll just pay more to make up for their mistakes.

We pay for their mismanagement with our high ticket prices.

We pay for their mad decisions with $6 bags of popcorn

We pay for Chris Tucker’s $25 million paycheck with our time watching in-theater commercials.

All the while the industry continues happily along its downward spiral feeling no ill effects of their stupidity… because they’ve taken those ill effects and shoved them up our rectums for US to deal with.

4) The Solution Has To Start With The Theaters
If this insanity is ever going to stop… if change in the economics of going to the movies is going to ever happen, I’m convinced it will have to first start with the theaters. Movie theaters have to better organizes themselves and collectively stand up the the Studio system and REFUSE to let 80% of the box office dollar for a films first week of release go flying out the door to Hollywood. By not standing up collectively, the movie theaters act as complicit enablers to the studios behavior.

WHAT WOULD HAPPEN IF THEATER OWNER ASSOCIATIONS REFUSED TO GIVE ANY MORE THAN 50% OF OPENING WEEK BOX OFFICE MONEY TO THE STUDIOS? I’ll tell you what would happen:

a – Studios would be forced to SERIOUSLY look at their own economics and financial responsibility. There would be no more $25 million dollar pay days for B string actors

b – Theaters would actually start making some money on… you know… MOVIES

c – With added revenue from the actual box office, the pressure on theaters to add more ads, to raise ticket prices, to jack up popcorn costs… would be at least a little bit alleviated.

It has to be a collective effort by the theater owners or else the studios will just refuse to give their movies to the stubborn theaters and give all the business to others. If the Theater Owner associations collectively said “no”, the studios would have no choice but to start to fix their leaky boat

5) Why Not Going To The Theaters Won’t Fix The Problem
Some people will say “Well then let’s not go to the movie theaters until we force them to change”. That will NEVER work, because as I’ve demonstrated above, when there are financial losses, the current industry system just takes back those loses from those who are buying the tickets. They’ll blame piracy for the dip in thater attendance and raise prices even more. It’s a systemic problem.

And if you think you’re safe from these rises and gouges because you just watch movies at home on DVD…. guess where the systemic problem will strike next once they’ve bleed the theater goers as much as they possibly can? DVDs and HD discs will suddenly start costing $60 a shot and Hollywood will pressure Washington to pass tax laws on Big TVs to pay a fee to the studios for each unit sold, thus raising prices there too.

You see… the answer to all the current systems problems is to take more from us. Thus, the system itself has to change, the the theaters are the ones who have to start it.

Just some late night ramblings. Take it as you will.

Federal ministries duplicate projects' budgets

The Niger Delta and Environment Ministries have been asked to convene an emergency meeting to reconcile discrepancies uncovered in projects proposed for execution under the 2010 budget appropriation.

The Niger Delta Budget Monitoring Group (NDEBUMOG), a non-governmental organisation (NGO) committed to the promotion of transparency and accountability in government ministries, departments and agencies (MDAs), yesterday accused the two ministries of not taking steps to correct observed lapses in their 2010 budget proposals despite previous complaints.

The Ministry of Environment had published advertorials last Monday inviting tenders from contractors and consultants for the execution of various erosion and flood projects located in various parts of the country as part of its 2010 capital projects.

George-Hill Anthony, executive director, NDEBUMOG, claimed in a petition to the Bureau of Public Procurement (BPP) and the Budget Office of the Federation (BOF) yesterday that "many of the advertised projects are duplicated and already listed for the Niger Delta Ministry."

Some of the projects advertised for tenders include the erosion/flood control Project along Nassarawa Ekabo Road, in Calabar, Cross River state listed A37 under Lot A; erosion control works along Marine Beach, Calabar (B4) Lot B; sand filling/shoreline protection at Tombia (Iwoama) Rivers state (B10), and Adiabo erosion control, Cross River state (B39).

Double projects

The Tombia sand filling/shore line protection project listed under the Federal Ministry of Environment is duplicated in the Federal Ministry of Niger Delta Affairs 2010 Budget under the Chat of Account -0710000010290000 with a contract value of N100million, while other projects listed for execution of the Environment Ministry are also under the consideration of the Ministry of Niger Delta Affairs.

Mr. Anthony said in Abuja that his group is afraid government risks losing billions of Naira if the projects were awarded to contractors through the ministries' in-house procurement processes without being subjected to approval guidelines, considering that they are below the cost margin or threshold approved for them by BPP.

It was learnt yesterday that the duplication also involves the Niger Delta "State of Environment Report" on which the Federal Ministry of Environment plans to spend N15 million, despite another N600million appropriated for a similar purpose by the Niger Delta ministry.

The report is an exercise to audit the Niger Delta environment to establish impacted sites, products pipeline networks, and other such locations in the region.

Lame defence

But, following NDEBUMOG's alarm, the Permanent Secretary of the Niger Delta ministry has already directed the director in charge of environment to immediately convene a meeting with the relevant authorities in the Environment Ministry to review and reconcile the duplication.

"The ministries have agreed that the implementation of some of the projects being proposed to the BOF under the Medium Term Sectoral Strategy (MTSS) for 2011 and 2015 are obviously beyond the number of projects the Niger Delta Ministry's budget can accommodate," a ministry official said on the condition of anonymity because he was not authorised to speak on the matter.

"Some of the projects, like the Tombia Shoreline protection projects, which have about 10 components, is so long, and cannot be handled with the Ministry of Environment budget alone. Some of these projects have not only overlapped, but are not even labelled. That is why one project could be credited to more than one ministry," the official added.