PriceWaterhouseCoopers’ (PwC) has forecast a rapid growth in Africa’s media ecosystem in 2022. This was contained in the professional services company’s Entertainment and Media Outlook, which analysed five African countries — South Africa, Nigeria, Kenya, Ghana and Tanzania — based on their consumer and advertising spend in 14 different entertainment and media segments.
The PwC forecast span from 2018-2022 and cuts across 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business (B2B), music, out-of-home (OOH) and radio.
Previously, there was a large gap between the entertainment and media (E&M), technology and telecommunications industries, but the entrance of mobile devices have successfully bridged the gap. Running and promoting businesses online is now the new way forward. The ability to build relevance and sustain consumer trust through the internet and advertising has become very necessary.
The South African E&M industry is forecast to reach R177.2 billion ($12 billion) in 2022 up from R129.2 billion ($8.8 billion) in 2017. Internet advertising will greatly exceed TV advertising in terms of growth and overtake TV advertising spend in 2022, the Outlook notes.
Advertising through the internet is expected to grow at a compound annual growth rate (CAGR) of 11.3 percent by 2022 to R91.2 billion, from R53.4 billion gotten last year. For the print media (Newspapers and magazines) revenues will decline over the next five years. In 2017, total newspaper revenue fell by 2.9 percent to R8.6 billion and is forecast to drop further at a -4 percent CAGR to R7 billion.
Already, the internet is making great waves in Nigeria and the revenue for entertainment and Media witnessed a 25.5 percent rise in 2017 to $3.8 billion, of which $605 million is as a result of the internet. In 2022, a 21.5 percent CAGR rate is anticipated with revenues reaching $9.9 billion. revenues from the internet is forecast to account for 89.6 percent of the absolute growth.
In 2017 Kenya’s entertainment and media industry witnessed a 17 percent year-on-year growth which was propelled by growth in the Internet sector. PwC forecast that there will be an 11.6 percent CAGR that will make revenues rise up to $2.9 billion in the country in 2022, up from $1.7 billion in 2017.
Entertainment and media industry has witnessed a boom in the last 5 years and is expected to double in the next 5 years. Total revenue stood at $752 million in 2017 and is forecast to total $1.5 billion in 2022 thanks to Internet revenues.
Total revenue from the entertainment and media industry in Tanzania was $496 million in 2017, after witnessing a 28.2 percent year on year increase. PwC forecast revenues from the industry to reach $1.2 billion in 2022, 2.3 times the size of the market in 2017.
Collectively, these 5 African countries will add $12.4 billion in revenue from 2017 to 2022 at a combined CAGR of 11.9 percent. This will be largely driven by Nigeria’s revenues as well as organic growth, increased population and access to internet.