Nigeria, Kenya TV sectors to command US$1BN each by 2018
| 26 September 2014
Revenues from Nigeria's entertainment and media industry are predicted to reach US$8.5 billion by 2018, according to a new report by PWC.
The analysis looked at three key African markets: Nigeria, Kenya and South Africa and found that the sector's returns will more than double Nigeria's 2013 figure of $4.0 billion, growing at a compound annual growth rate (CAGR) of 16.1%, said the report.
Television advertising, subscriptions and licence fees will grow steadily to provide a combined market of $1 billion in 2018, however Nigeria's internet growth is set to be the key driver for the market overall, PWC believes. The number of mobile internet users in the country is expected to reach 50.4 million in the next four years, up from 7.7 million in 2013.
"Nigeria's entertainment and media revenues represents one of the fastest growth rates in the world," said the research and consultancy firm.
According to PwC Africa connectivity index, South Africa tops with a countrywide internet connectivity of 83% and Kenya follows at 75%. Although broadband penetration is relatively high in Nigeria, the cost of services is to high at 0.6% of the average GDP per capita, which restricts its place in the index, said PWC.
Kenya's entertainment and media revenues are forecast to rise to $3.1 billion in 2018, up from $1.7bn in 2013. Like Nigeria, improved internet access will drive this growth. TV and radio will account for combined revenues of $1 billion or more by 2018.
Combined subscription and advertising revenues from South Africa's TV market are projected to reach ZAR39.6 billion ($3.5 billion) in 2018. The study shows that advertising accounted for 38% of revenue in the entertainment and media industry in 2013, although this share is expected to fall to 33% in 2018, largely due to increased internet penetration.