This is compelling and interesting. I agree with your assertions. However, multichoice alone is not to blame, Nigeria movie industry have her own share of the blame. Nollywood produce many movies per year but with few cinemas and screens in the country screen them. This is a very big challenge, i don't know if they see it as one.
One of the ways hollywood and bollywood make so much profit and success with their movies is because of the availability of cinemas all over their country and all over the world to screen them. Whereas in Nigeria, only few states can booast of cinemas, in fact , the few states with cinemas can hardly boast of up to 5(Lagos, and Abuja being an exception). Hollywood has market in America and all over the world especially asia countries where they amass so much profit. Although nollywood knows that their main market is nigeria, yet, they are not investing enough to make the market profitable. Imagine someone in Ekiti state, Osun state, and some other state will never get to see some of the latest Nollywood movies screened at the cinemas, why? No cinemas in those states. Imagine yhe additional amount those movies would have amassed in those states.
Another sad part to this story is that the few available cinemas hardly screen Nigeria movies beyond one week and Nigerians hardly see Nigeria movies if it's not romance or comedy. This is why movies like wedding party and 10 days to sun city made so much money, whereas 93 days, a compelling movie about how the medical team in Lagos were able to curb the ebola infection in nigeria could barely make the amount spent on production. It's really sad, filmmakers would be running away from making such movies and mediocre comedies and romance movies will keep gracing our cinemas. Little wonder most of the recent movies in our cinemas are below par comedies and rom-comedy. In fact some of the nollywood movies we screen at our cinemas ought to be straight to dvd movies.
So, I don't blame the filmakers that decided to sell their movies to multichoice, afterall, they will get a token which some of them may not be able to get if they stick to their dvd sales.
More cinemas are needed for nollywood to blossom.