Once upon a time, pirated Hollywood movies used to cost 200 naira while original Nollywood ones used to cost 350 naira or so. The price difference was minimal and most people had no problems buying Nollywood movies from time to time.
Now that it's possible to get a DVD with 12 to 16 movies for about 300 naira, the cost of a single pirated Hollywood movie is now effectively 20 naira or so. And the video quality is the same as the quality of Nigerian movies on VCD.
How can Nigerian movies compete with this price? I don't think they can.
I wonder if this is already affecting the local movie industry in a big way, because it seems to me that it should. Once most people get DVD players, are we doomed?
(Of course, ad-supported business models that allow you to distribute your movies for free may still be viable.)