The recently released PwC Africa Entertainment and Media Outlook 2023-2027 report has predicted that Nigeria will experience the most substantial growth in Entertainment and Media (E&M) revenue, with revenue expected to more than double from 2022 to 2027. Additionally, South Africa’s E&M market growth is expected to outpace the global average, despite stabilizing in 2022.
Read also: PwC global revenue rises by 9.9%, hit $53.1bn
The report highlights the challenges faced by the E&M industry in 2022, including the impact of the global economy struggling to return to normalcy. Factors such as falling stock markets, rising interest rates, and the tapering of pandemic-era growth trends have led to slower rates of expansion compared to the rebound growth experienced in 2021. However, overall revenue still rose in 2022, despite sluggish consumer spending.
The influence of consumer spending on E&M products and services is declining, while the influence of advertising is rising, forcing industry leaders to reassess and reinvent their strategies. The competition for consumers’ attention and revenue is intensifying, with the emergence of new entrants such as Disney+ and Paramount+ in the African market.
The report also highlights the impact of streaming services on traditional TV services, with many consumers forgoing traditional TV in favor of on-demand video content. While total TV advertising revenue contracted in South Africa in 2022, it is expected to rebound and increase at an overall compound annual growth rate (CAGR) through 2027. In Nigeria and Kenya, TV advertising growth is projected to be much stronger over the next five years.
Read also: FG in pact with PwC on solid minerals roadmap
According to PwC, linear TV remains essential for brand awareness and reaching audiences, while digital advertising offers short-term boosts. The report emphasizes the need for traditional broadcasters to engage with younger audiences and enhance their online video streaming platforms to remain competitive in the evolving E&M landscape.
