A new report by PricewaterhouseCoopers (PwC) has revealed that Nigeria’s entertainment and media sector will grow from $9 billion to $13.6 billion by 2028 as the industry records substantial growth on the continent.
In South Africa, the sector is expected to increase from US$16.1bn to US$19.8bn, while Kenya’s revenue will reach US$4.8bn by the end of the forecast period, up from US$3.8bn in 2023. PwC’s 2024 outlook indicated that the three African markets will see revenue growth ahead of the global average of 5.0 percent in 2023.
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PwC noted that live music has finally recovered to surpass pre-COVID revenue levels, and other sectors, like internet advertising, are achieving impressive scale, while ongoing infrastructure deployments and rapid growth in data usage will fuel demand and drive fixed and mobile service revenue growth.
PwC stated that much of this growth will be caused by the rapid expansion of digital platforms and services. Sectors such as internet advertising, video games, esports, over-the-top (OTT) streaming, and music, radio, and podcasts are experiencing significant growth across all three markets.
In Nigeria, internet advertising revenue is expected to double between 2023 and 2028. South Africa is also witnessing high OTT and internet advertising growth, supported by stable internet connectivity and 5G adoption. Kenya’s internet advertising market is projected to be the fastest growing in the world, with a CAGR of 17.4 percent.
The report also highlighted the role of Africa’s young population in driving the growth of mobile-based services like mobile gaming, esports, and OTT streaming. This demographic’s preference for digital and mobile platforms will continue to shape the future of the entertainment and media industry in the region.
Emerging technologies, particularly artificial intelligence (AI) and 5G, are expected to further disrupt and transform the landscape in Africa. AI is tipped to enhance content creation, recommendation, and production processes, while 5G will enable new use cases like cloud gaming, video streaming, and virtual reality.
While the African entertainment and media industry presents significant opportunities, challenges remain. These include the need for ongoing infrastructure development, regulatory frameworks that support digital growth, and business model innovation in the face of rapid technological change.
Despite these challenges, the PwC report paints a positive picture of the industry’s future in Africa.
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