A 21.5 per cent compound annual growth rate (CAGR) is anticipated in the revenue of the nation’s Entertainment and Media (E&M) industry,bringing the earnings to $9.9bn in 2022, a report has shown.
According to PricewaterhouseCoopers (PwC) ‘Entertainment and media outlook: 2018 – 2022: An African perspective,’ released today, this growth is due to the fact that Africa’s entertainment and media industry has entered a dynamic new phase it described as a “third wave of convergence.”
Nigeria saw a huge 25.5 per cent rise in E&M revenue in 2017 to US$3.8 billion, with US$605m of the US$764m rise attributable to Internet access, according to the report which also added that Internet access revenue will account for 89.6 per cent of this absolute growth.
Other countries captured in the outlook are South Africa, Kenya, Ghana and Tanzania but it said
the five countries will be driven by Nigeria to account for US$12.4 billion in revenue from 2017 to 2022, at a combined CAGR of 11.9 per cent.
However, much of this will fall into the hands of telcos,said the report, and there are significant opportunities for content providers too.
“The engine of growth here will be organic, with increased populations and gradually increasing disposable income swelling the ranks of potential E&M consumers – and ever-increasing Internet access greatly expanding the range of E&M opportunities available,” it noted.
Entertainment and Media Leader for PwC Southern Africa,Vicki Myburgh, said “To succeed in the future that’s taking shape, companies must re-envision every aspect of what they do and how they do it. It’s about having, or having access to, the right technology and excellent content, which is delivered in a cost-effective manner to an engaged audience that trusts the brand.
“The borders that once separated the entertainment and media (E&M), technology and telecommunications industries are blurring in the battle for the attention of the consumer in a world that is rapidly digitising.”