Nigeria's music and entertainment industry expected to have a big financial year ahead of the rest of Africa
Internet is the main driver of this performance by Nigeria. The industry is expected to hit $6.4 billion by 2021.
More so, this growth is stated to be driven by internet advertising revenue, mostly from the mobile segment.
This is according to a report by PricewaterCoopers (PwC) Entertainment and Media outlook: 2017 – 2021 – An African perspective.
“Nigeria is one of the fastest-growing countries in the world, but appearances can be deceiving.”
“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,” the report stated.
For Africa, the report noted that disruption in the business model which result from shifts in consumer preference, high penetration of internet and smartphone occasioned by rapid advances in technology. Thus, evolving into new ways of content consumption by the people in the region.
“Some of the trends highlighted in this summary are not necessarily new. These include the continued shift of revenue from non-digital to digital media, the growth of mobile media and importance of user experience in determining the scope and success of content and services.”
“The growth of mobile Internet access via smartphone ownership, and of mobile media consumption, is yet to be fully reflected in the revenue generated by mobile advertising or consumer spend on mobile-only content.”
South Africa’s E&M industry was projected to hit R177.9 billion ($13.34 billion) after adding R45. 2 billion ($3.40 billion) in the next six years. Internet-based revenue was estimated to account for about 60 percent of this increase. Thus, making the proposition of high consumption of digital content a reality and the need to optimize these digital channels. A similar trend was suggested for Nigeria, Ghana, Tanzania and Kenya.
In Nigeria, E&M industry is expected to add about $2.8 billion with $452 million coming from internet-based revenue. More so, the interest contribution to this industry was established on the increasing streaming activities for Nigerian online music and video consumers.
Ghana and Tanzania E&M industries were projected to make tremendous strides in the years covered by the report. Ghana is projected to have a 25% growth on a year-on-year basis while hitting $1.5 billion by 2021. Also, Tanzania will grow to $1.1 billion on a 17.5 CAGR by 2021.
Kenya is also expected to gear up to $3.2 billion in 2021 with a 13.6% CAGR for the six years.
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