PricewaterhouseCoopers (PwC), a global consulting firm in the world, has projected that Nigeria’s consumer revenue in entertainment and media (E&M) will rank fourth as the fastest-growing country by 8.8 percent from 2022 to 2026.
In the latest industry report titled “Perspectives from the Global Entertainment & Media Outlook 2022-2026,” PwC says the rate will be driven by strong growth in video games, music, and cinema.
Video revenue increased by 22.8 percent in 2021 after soaring in 2020, reaching US$79.1 billion. The rate of revenue growth will slow down; through 2026 when revenue is predicted to reach US$114.1 billion. It is expected to increase at a Compound annual growth rate (CAGR) of 7.6 percent.
Video games revenue, which rose 32 percent between 2019 and 2021, will rise at an 8.4 percent CAGR through 2026, creating a US$321bn industry.
Cinemas, which are slowly reviving from the COVID shutdowns, won’t regain their 2019 revenue total of US$45.2bn until 2023.
Digital music-streaming subscriptions are driving growth in the recorded music sector where revenues are forecast to rise from US$36.1bn in 2021 to US$45.8bn in 2026.
Obinna Okerekeocha, a creative director said, one thing that is really prevalent in Nigeria these days is entertainment. The current inflation in our economy has bought harsh living realities for many. This has made entertainment a much-needed escape for millions across the country.
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“Afrobeats which has its roots in West Africa, between Nigeria and Ghana has become a global sensation with Afrobeat stars headlining and selling out biggest arenas in Europe and America. This genre of music is so popular that Nigerians actually go out of their way to purchase and download this music on various music streaming platforms including digital music” said Okerekeocha.
He also stated that the video game industry has been steadily growing for years and that the players are either console or PC players. Both groups of players buy games both online and offline. Esports is worth more than a billion dollars in revenue worldwide. According to projections, this figure will reach $2.8 billion by 2028. Young Nigerians, particularly Generation Z, have embraced the Esports culture, spending large sums of money to play their favorite games online with other players from their community and around the world.
According to the report, 2021 was a year of uncertainty in public health, supply chains, and geopolitics. But amid all the uncertainty came a greater clarity about the overall trends of the entertainment and media (E&M) market, the forces driving growth, and an understanding of the fault lines and fractures forming in consumer behaviors, business models, competitors, and regulations.
Werner Ballhaus, Global Entertainment & Media Industry Leader, PwC said Industry press tends to focus on the companies that have dominated the entertainment and media industry. But it is the choices that billions of consumers make about where they will invest their time, attention, and money that are fueling the industry’s transformation and driving the trends.
“We are seeing the emergence of a global E&M consumer base for the coming years that is younger, more digital, and more into streaming and gaming than the current consumer population. This is shaping the future of the industry,” he added.
Based on Statista, total revenue in the Entertainment segment is projected to reach US$29.35bn in 2022.
The main factor that makes Nigeria one of the countries with the fastest growing entertainment consumer revenue is technology. It has made streaming of movies and music more accessible as a means of entertainment to Nigerians, said Oyinda Olukanni, Digital communication Manager.
“The expansion of movie theaters has also aided; as of the most recent count, there are 65 large screens spread across the country. These have boosted the box office in Nigeria”.
Furthermore, he stated the world is currently focusing on Nigeria because of the most popular genre we have now, Afrobeats. Our top artists now charge at least $3,000,000 to perform internationally.
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