Nigeria is expected to continue to lead Africa’s music and entertainment industry by 2022 with a projected 21.5% growth rate (CAGR), with revenue reaching $9.9 billion.
The growth in Nigeria is due to the strength of its population and the gradual increase in disposable income swelling the ranks of potential entertainment and media consumers.
PricewaterCoopers (PwC) stated this in its latest report, “Global Entertainment and Media outlook: 2018 – 2022 – Trending now: convergence, connections and trust,” released on Wednesday, September 19, 2018.
The Outlook is a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana and Tanzania).
It also analysed 14 segments including internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business (b2b), music, out-of-home (OOH) and radio.
E&M in Nigeria
According to the report, a 21.5% compound annual growth (CAGR) rate is anticipated for Nigeria between 2018 to 2022, with revenue reaching $9.9 billion in that year.
Unlike 2017 report, internet access revenue will account for 89.6% of the growth.
Kenya’s E&M industry saw a 17% year-on-year growth in 2017, again propelled by growth in the Internet sector. An 11.6% CAGR will take the country to $2.9 billion in 2022, from $1.7 billion in 2017.
Outside of the Internet space, TV and video revenue dwarfs the other segments.
Ghana’s E&M industry has more than tripled in value since 2013. Total revenue reached $752 million in 2017.
It is forecast to surpass $1 billion in 2019 and to total $1.5 billion in 2022, increasing at a 14.2% CAGR. As with Nigeria and Kenya, Internet access spending accounts for much of this revenue and growth.
Ghana is in a strong position for further E&M growth as revenue gains critical mass over the next five years.
Total E&M revenue in Tanzania stood at $496 million in 2017, having risen 28.2% year on year.
Continued momentum at an 18.3% CAGR will see revenue reach $1.2 billion in 2022, 2.3 times the size of the market in 2017. Tanzania’s E&M revenue make-up is ostensibly similar to that of Ghana, although here Internet revenue takes a slightly less dominant position.
The report further stated that among the countries considered, growth will be driven by Nigeria, adding $12.4 billion in revenue from 2017 to 2022, at a combined CAGR of 11.9%.
Most of the revenue will fall into the hands of telcos and content providers.