Internet access will generate more consumer spend than any other media product or service in Kenya, in the next four years in the entertainment and media industry. In 2013, Kenya recorded US$1.7bn in entertainment and media revenues and this is forecast to rise to US$3.1bn in 2018. Television and radio will account for combined US$1 billion-plus of revenues at the end of the forecast period.
According to PwC today, South Africa’s entertainment and media market is expected to grow by 10.2% compounded annually (CAGR) in the next four years to a value of R190.4bn. By far, the largest segment will be the Internet. Combined revenues from Internet access and Internet advertising will account for an estimated R71.6bn in 2018, accounting for 37.6% of total revenues.
Nigeria’s entertainment and media revenues will 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%.
Consumers love for new technology has played a big role in media and entertainment growth in South Africa, in particular mobile technology such as smartphones and tablets as well as applications powered by data analysis and cloud services. Needs and expectations from consumers have also escalated the growth.
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 predicts that the fastest growth will be seen in video games and radio, which will enjoy growth rates at 9% and 8.2% respectively. Other segments include; 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 and sports.
Video games has made the greatest transition to digital, largely due to the popularity of mobile gaming, but also because of the increased potential for digital distribution of console games. The study projects that 27% of console revenues are forecast to be digital in 2018.
Television is the second-largest segment, with combined revenues from TV subscriptions and advertising projected to reach R39.6bn in 2018. The study shows that advertising accounted for 38% of revenue in the E&M industry in 2013, although this share is expected to fall to 33% in 2018, largely due to internet access increasing its market share significantly over the same period.
Drivers of growth in the sports segment will come from sponsorships and media rights. In South Africa, television is the second-largest segment, with combined revenues from TV subscriptions and advertising projected to reach R39.6bn in 2018. The study shows that advertising accounted for 38% of revenue in the E&M industry in 2013, although this share is expected to fall to 33% in 2018, largely due to internet access increasing its market share significantly over the same period.
Digital revenues in other segments remain relatively small. Nevertheless digital is on the rise both in terms of consumers and advertising revenues. Electronic home video is also catching on rapidly in the film segment. Far less digital take-up is being seen in the magazine, newspaper and book segments, with digital revenues for each forecast to be under 7% of the total, even in 2018.
However, with the high tendencies of browsing newspapers and magazine websites online, monetizing these consumers presents much more difficulty for E&M businesses.