Increased internet access will generate more consumer spend than any other media product or service in the next five years in the African entertainment and media industry, according to a report issued by PwC.
South Africa’s entertainment and media market is expected to grow by 10.2 percent compounded annually (CAGR) from 2014 – 2018 to a value of R190.4 billion.
By far the largest segment will be the Internet. Combined revenues from Internet access and internet advertising will account for an estimated R71.6 billion in 2018, accounting for 37.6 percent of total revenues, according to PwC’s South African Entertainment and Media Outlook: 2014-2018 (‘The Outlook’).
Nigeria’s entertainment and media revenues will reach an estimated $8.5 billion in 2018, more than doubling from the 2013 figure of $4 billion at a CAGR of 16.1 percent.
This represents one of the fastest growth rates in the world. The internet will be the key driver for Nigeria, where the number of mobile internet subscribers is forecast to surge from 7.7 million in 2013, to 50.4 million in 2018.
Television in the form of advertising and subscriptions and license fees, will also become a $1 billion-plus market in 2018, while the market will grow steadily.
Vicki Myburgh, entertainment and media industries leader for PwC South Africa, says: “Growth in the South African entertainment and media industry is largely being driven by the Internet and by consumers’ love of new technology, in particular mobile technology, such as smart phones and tablets, as well as applications powered by data analytics and cloud services. Technology is increasingly being driven by consumers’ needs and expectations.”
The fifth edition of PwC’s ‘South African Entertainment and Media Outlook’ presents annual historical data for 2009-2013 and provides annual forecasts for 2014-2018 in 12 entertainment and media segments.
The outlook includes historical and forecast data on the Internet, television, filmed entertainment, radio, recorded music, consumer magazine publishing, newspaper publishing, consumer and educational book publishing, business-to-business publishing, out-of-home advertising, video games, and sports. It gives a detailed breakdown of these sectors.
The outlook also includes detailed information for South Africa, Nigeria and Kenya in each of the 12 industry segments.
