Nigeria to generate US$2.8bn from entertainment, media companies in 4yrs

Entertainment and media companies operating in Nigeria are expected to generate US$2.8 billion in revenue between 2016 and 2021.

The experts’ position was contained in the latest ‘Entertainment and Media Outlook: 2017 – 2021: An African perspective’ by the PriceWaterhouseCoopers (PwC).

The Outlook also revealed that of the US$2.8 billion, the Nigerian market will add between 2016 and 2021, all but US$452 million will come from Internet access revenue.

According to the Entertainment and Media Industry Leader for PwC Southern Africa, Vicki Myburgh, Nigeria is one of the fastest-growing countries in the Outlook in terms of total E&M revenue, adding “…

But this figure must be treated with caution, as a huge proportion of that growth comes from Internet access revenue alone–specifically mobile Internet access revenue.”

The combined elements of TV and video, the Outlook noted will add nearly US$200 million in revenue growth to 2021.

The Outlook is a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries, namely South Africa, Nigeria, Kenya, Ghana and Tanzania; and 14 segments:

including the Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business publishing, music, out-of-home, and radio.

The Outlook, which also break down the Entertainment and Media industry in South Africa stated that by 2021, total E&M revenue in South Africa is expected to reach R177.9 billion, up from R132.7 billion in 2016.

It believes Internet access remains the key growth driver and will account for R27 billion of this increase.

The fastest growing sectors will be virtual reality (VR) and e-sports compounded annually at 72.6 per cent and 39.6 per cent, although these segments are still new revenue lines and remain the smallest in terms of absolute revenue numbers.

Other countries within the African continent, which the Outlook scanned include:

Kenya
The E&M industry was worth US$2.1 billion in 2016, up 13.6 per cent on 2015. Revenue is forecast to grow at an 8.5 per cent CAGR over the next five years, hitting the US$3 billion mark in 2020, and totaling US$3.2 billion in 2021.

Internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021.

Ghana
Ghana’s E&M industry is beginning to gear up. In 2012, total revenue was just at US$214m, but four consecutive years of year-on-year growth above 25 per cent have led it to revenues of US$685m in 2016.

This is forecast to more than double over the next five years, with revenues of U$1bn being surpassed in 2019; and a total of US$1.5bn forecast for 2021, thanks to a 16.5 per cent CAGR.

Tanzania
Tanzania’s total E&M revenue stood at US$504m in 2016, but is set to more than double to US$1.1bn in 2021, a 17.2 per cent CAGR over the coming five years.

The symbolic crossing of the US$1bn mark is set to occur in 2021. This is significant growth from 2012 where the industry stood at just US$175m.