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Africa’s entertainment and media industry on the rise

April 17, 2018

With a commodity crunch in Africa’s major economies slowing down economic growth, there’s some good news on the entertainment economy front.

Africa’s entertainment industry, especially in the two biggest economies, Nigeria and South Africa, is expected to grow exponentially over the next few years according to a major study looking at the continent’s entertainment industry growth.

Consumers are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access

The PwC Outlook report says South Africa‘s entertainment and media industry is expected to grow from R112.7 billion in 2014 to R176.3 billion in 2019, with digital spend expected to fuel the overall growth.

Nigeria‘s entertainment and media market grew by 19.3% in 2014 to reach US$4 billion. By 2019, the market would be more than twice as big, with estimated total revenue of US$8.1 billion.

Vicki Myburgh, entertainment and media leader for PwC southern Africa, says: “This year’s outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile in South Africa, the Internet will be the key driver of growth for Nigeria.

Kenya‘s total entertainment and media industry was valued at US$1.8 billion in 2014, up 13.3% from 2013, when it stood at US$1.6 billion. The market is expected to surpass the US$3 billion mark in 2019 to reach US$3.3 billion.

“Increasingly, though, it’s clear that consumers see no significant divide between digital and traditional media – what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content,” said Myburgh.

South Africa’s Internet access market is also expected to rise rapidly, far ahead of any other consumer spend category, making it the largest contributor to the country’s total entertainment and media revenues.

Television, comprising revenue from TV advertising and subscriptions, is the other main driver.

“Consumers are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access” said PwC.

Television, filmed entertainment and video games are the areas where Nigerian consumers are expected to spend the most over the next five years.

The PwC Outlook presents annual historical data for 2010–2014 and provides annual forecasts for 2015–2019 in 11 entertainment and media segments for South Africa, Nigeria and Kenya: the Internet, television, filmed entertainment, video games, business-to-business publishing, recorded music, newspaper publishing, magazine publishing, book publishing, out-of-home advertising and radio.

Music, magazines and newspapers, which will show only moderate consumer growth, are three segments that face strong competition from the Internet.

The report also showed that South Africa’s total entertainment and media advertising revenue is expected to rise by 5.6% from R39.7 billion in 2014 to R52.1 billion in 2019.

Read the original article on Theafricareport.com : Africa’s entertainment and media industry on the rise | East & Horn Africa
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