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Nigeria to top media entertainment market
Nigeria will be the world’s fastest-growing Entertainment & Media (E&M) industry between 2017– 2021. In Africa, Nigeria still tops followed…
Nigeria will be the world’s fastest-growing Entertainment & Media (E&M) industry between 2017– 2021. In Africa, Nigeria still tops followed by Kenya, Ghana, and Tanzania.
This is according to a new report by PriceWaterCoopers (PwC), dubbed Entertainment and media outlook:2017–2021: An African perspective’ report.
In terms of total E&M revenue, PWC stated that Nigeria was one of the fastest-growing countries in Outlook, but cautioned that the figure must be treated with caution, as a huge proportion of that growth comes from Internet access revenue alone–specifically mobile Internet access revenue.
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Of the US$2.8 billion that the Nigerian market will add between 2016 and 2021, all but US$452 million will come from Internet access revenue. The combined elements of TV and video will add nearly US$200 million in revenue growth to 2021.
Of the US$2.8 billion that the Nigerian market will add between 2016 and 2021, all but US$452 million will come from Internet access revenue. The combined elements of TV and video will add nearly US$200 million in revenue growth to 2021.
Kenya
Kenya came in as second in Africa. The report shows that Kenya’s 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.
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Ghana
Ghana comes in as third in Africa. 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% CAGR.
Tanzania
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Tanzania on the other hand, took the forth position. 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% 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$175 million.
South Africa
By 2021 total E&M revenue in South Africa is expected to reach US$ 13.4 billion, up from US$ 10 billion in 2016. Internet access remains the key growth driver and will account for US$ 2 billion of this increase. The fastest growing sectors will be virtual reality (VR) and e-sports compounded annually at 72.6% and 39.6%, although these segments are still new revenue lines and remain the smallest in terms of absolute revenue numbers. Although overall growth in revenue will hold up, it is expected to slow down by the end of 2021.
Disruption to Business Models
The report further attributes the growth to shift in consumer preferences, rapid advances in technology and ongoing disruption to business models which has led to 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.
The report also showed 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. To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.
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.