Over the next five years, increased internet access is expected to generate more consumer spend across the African continent a study by PwC shows.
Vicki Myburgh, Entertainment & Media Industries Leader for PwC South Africa
According to reports issued by PwC, increased internet access will have a great influence on the Nigerian entertainment and media industry.
Nigeria’s entertainment and media revenue is likely to reach an estimated US$8.5bn in 2018, more than doubling from the 2013 figure of US$4.0bn at a CAGR of 16.1%. These figures represents one of the fastest growth rates in the world.
The internet will be a major influence 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 licence fees, will also become a US$1 billion-plus market in 2018, while the market will grow steadily.
The outlook also includes detailed informations for South Africa, Kenya and Ghana.
South African’s entertainment and media industry will also benefit from an increased internet access, and is expected to grow by 10.2% compounded annually (CAGR) from 2014 – 2018 to a value of R190.4bn.
Reports by PwC’s South African entertainment and media outlook stated that combined revenues from internet access and internet advertising will account for an estimated R71.6bn in 2018, accounting for 37.6% of total revenues.
Vicki Myburgh, Entertainment & 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 smartphones and tablets, as well as applications powered by date analytics and cloud services. Technology is increasingly being driven by consumers’ needs and expectations.”
Also, according to the study, Kenya recorded US$1.7bn in entertainment and media revenues in 2013, and this is expected to rise to US$3.1bn in 2018.
In this case, internet access is also encouraging growth. Television and radio will account for combined US$1 billion-plus of revenues at the end of the forecast period, 2018.
In Ghana, a relatively mature TV and internet infrastructure assists in making it a market in which consumers are more receptive to advertising.
In spite of a decline in 2011, total advertising revenues are now on the rise again with total spend reaching GHS245.6 million (US$73.3 million) in 2012.
It appears Ghana scores well in the connectivity index because the Government appears committed to supporting growth plans for broadband services which are relatively affordable compared to other markets in the continent.
