- ‘Nigeria’s Entertainment/Media Industry Revenue’ll Hit $9.9b by 2022’
Revenue from Nigeria’s Entertainment and Media (E&M) industry will reach $9.9 billion in 2020, PricewaterhouseCoopers’ (PwC) “Entertainment and Media Outlook: 2018 – 2022: An African Perspective” released last week said.
The multinational professional services firm said a 21.5 per cent Compound Annual Growth Rate (CAGR) is anticipated for Nigeria’s E&M industry by 2022, with revenue reaching $9.9 billion, and that Internet access revenue will account for 89.6 per cent of projected growth.
The PwC’s E&M outlook said Nigeria saw a huge 25.5 per cent rise in E&M revenue in 2017 to $3.8 billion, although $605 million of this $764 million rise was attributable to Internet access.
The Outlook is a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries namely, Nigeria, South Africa, Kenya, Ghana and Tanzania.
It also highlighted developments in 14 segments namely, 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.
The Outlook noted that Nigeria and indeed, Africa’s E&M industry has entered a dynamic new phase – a third wave of convergence, and that borders that once separated the E&M, technology and telecommunications industries are blurring in the battle for the attention of the consumer in a world that is rapidly digitising.
It further stated that as mobile device cements itself as the pre-eminent source of the E&M experience, the most disruptive, forward-thinking companies are striving to create an integrated ecosystem suited to this consumer-driven dynamics.
Entertainment and Media Leader for PwC Southern Africa, Vicki Myburgh said: “It’s clear we’re in a rapidly evolving media ecosystem that’s experiencing Convergence 3.0.”In Convergence 3.0, the dynamics of competition are evolving while a cohort of ever-expanding super competitors and more focused players strive to build relevance at the right scale.
“And business models are being reinvented so all players can tap into new revenue streams, by, for example, targeting fans and connecting more effectively with customers to develop a membership mind-set.”
Myburgh further said the pace of change isn’t going to let up anytime soon, as new and emerging technologies such as artificial intelligence and augmented reality will continue to redefine the battleground.
“In an era when faith in many industries is at a historically low ebb and regulators are targeting media businesses’ use of data, the ability to build and sustain consumer trust is becoming a vital differentiator,” Myburgh said.
In the case of Kenya, the outlook said the country’s E&M industry saw17 per cent year-on-year growth in 2017, again propelled by growth in the Internet sector.
