Nigeria’s entertainment and media companies to generate $2.8Bn in 6years

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Media & Entertainment, PWC

 

By Martin Ekpeke

Entertainment and media companies operating in Nigeria are expected to generate US$2.8 billion in revenue between 2016 and 2021, even as a 2017 PWC Outlook sees Nigeria as one of the fastest-growing countries in the E & M market in Africa.

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According to the Outlook, US$452 million of the figure will come from people being entertained using Internet access, specifically mobile Internet access, with the combined elements of TV and video adding nearly US$200 million in revenue growth by 2021.

What this means is that, user experience will continue to take centre stage in the Africa’s entertainment and media industry amid a shifting consumer preferences, rapid advances in technology and ongoing disruption to business models.

“The new strategic imperative for entertainment and media (E&M) companies is to turn customers into fans – by innovating to create the most compelling, engaging and intuitive user experiences,” says Vicki Myburgh, Entertainment and Media Industry Leader for PwC Southern Africa.

The Outlook noted that significant shifts are underway in how Africa’s E&M companies compete and generate value, as the quality of the experience they deliver to consumers becomes their primary basis for strategic differentiation and revenue growth. Hence, to thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.

Meanwhile, the Outlook, which also break down the Entertainment and Media industry in South Africa stated that by 2021, total E&M revenue in South Africa is expected to reach R177.9 billion, up from R132.7 billion in 2016. It believes Internet access remains the key growth driver and will account for R27 billion of this increase. The fastest growing sectors will be virtual reality (VR) and e-sports compounded annually at 72.6 per cent and 39.6 per cent, although these segments are still new revenue lines and remain the smallest in terms of absolute revenue numbers.

Other countries within the African continent, which the Outlook scanned include:

Kenya

The E&M industry was worth US$2.1 billion in 2016, up 13.6% on 2015. Revenue is forecast to grow at an 8.5% CAGR over the next five years, hitting the US$3 billion mark in 2020, and totaling US$3.2 billion in 2021. Internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021.

Ghana

Ghana’s E&M industry is beginning to gear up. In 2012, total revenue was just at US$214 million, but four consecutive years of year-on-year growth above 25% have led it to revenues of US$685 million in 2016. This is forecast to more than double over the next five years, with revenues of U$1 billion being surpassed in 2019 and a total of US$1.5 billion forecast for 2021, thanks to a 16.5 per cent CAGR.

Tanzania

Tanzania’s total E&M revenue stood at US$504 million in 2016, but is set to more than double to US$1.1 billion in 2021, a 17.2 per cent CAGR over the coming five years. The symbolic crossing of the US$1 billion mark is set to occur in 2021. This is significant growth from 2012 where the industry stood at just US$175 million.

The Outlook is a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana and Tanzania) and 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business publishing, music, out-of-home and radio.

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