overview061115_o 06/11/2015 10:29 Page 1
Digital fuels growth in
Africa’s entertainment
and media industry
Advanced Television
overviews the African
Media and
Entertainment sector
and its prospects.
fter more than a decade of
digital disruption, the African
entertainment and media
industry has entered a new landscape –
one where the media is no longer
divided into distinct traditional and
digital spheres, according to a report
from PwC - Entertainment and media
outlook: 2015 – 2019 (South Africa –
Nigeria-Kenya).
The Outlook forecasts that South Africa’s
entertainment and media industry is expected
to grow from R112.7 billion in 2014 to R176.3
billion in 2019, at a compound annual growth
rate (CAGR) of 9.4%. Digital spend is expected
to fuel the overall growth. South Africa’s
Internet access market will rise rapidly from
R32.5 billion in 2014 to R76.2 billion in 2019,
far ahead of any other consumer spend
category, making it the largest contributor to
A
Sub-Saharan Africa
pay-TV revenues to
rocket to $6.2 billion
Pay-TV revenues in SubSaharan Africa will reach
$6.22 billion in 2020, up
from $3.54 billion in 2014
and $1.92 billion in 2010,
according to findings from
Digital TV Research.
Excluding South
Africa, pay-TV
revenues will climb
from $0.83 billion
in 2010 to $1.73
billion in 2014 and
onto $4.12 billion
in 2020.
The fourth
edition of the Digital
TV Sub-Saharan
Africa report
forecasts that South
18 Africa Briefing
convenience in when, where and how they
interact with their preferred content.
“Consumers are choosing offerings that
combine an outstanding and personalised user
experience with an intuitive interface and easy
access. This includes shared physical
South Africa’s total entertainment and media
experiences like cinema and live concerts,
revenues.
which appear re-energised by digital and
Vicki Myburgh, entertainment and media
social media.”
leader for PwC Southern Africa, says: “This
The Outlook presents annual historical
year’s Outlook shows consumer demand for
data for 2010–2014 and provides annual
entertainment and media experiences will
forecasts for 2015–2019 in 11 entertainment
continue to grow, while migrating towards
and media segments for South Africa, Nigeria
and Kenya: the Internet, television,
filmed entertainment, video games,
business-to-business publishing,
recorded music, newspaper
publishing, magazine publishing,
book publishing, out-of-home
advertising and radio.
Aside from the Internet, the
Outlook predicts that the fastest
growth will be seen in video games,
Source: PwC
business-to-business and filmed
entertainment. “But it is Internet
access itself that is acting as a
driver of revenues in video games
and film, creating new revenue
streams by making over-the-top
Entertainment and media (CAGR %), and Nominal
GDP growth, 2011–2019 (%)
(OTT)/streaming or social/casual
gaming viable to more consumers
video and mobile. Increasingly, though, it’s
and thereby cancelling out physical falls.”
clear that consumers see no significant divide
Music, magazines and newspapers, which will
between digital and traditional media – what
show only moderate consumer growth, are
they want is more flexibility, freedom and
three segments that face strong competition
Africa and Nigeria will
contribute more than half of
the region’s pay TV revenues
by 2020 for the 34 countries
covered. Second-placed
Nigeria will more than double
its revenues from $449
million in 2014 to $1.148
billion in 2020.
Satellite TV accounted for
92% of the 2014 pay TV
revenues, although pay DTT
will make inroads
(contributing $802 million in
2020 – quadruple the 2014
total). Competition and takeup of the cheaper DTT
packages will force ARPU
down in most countries.
Of the 12.92 million payTV subscribers at end-2014,
9.65 million were pay
satellite TV and 2.81
million pay DTT. The
pay total will more
than double to
27.95 million by
2020, with satellite
TV contributing
16.21 million and
pay DTT another
9.44 million.
According to
Source: Digital
Simon
Murray,
TV Research
principal analyst at
Digital TV Research, three
companies [Multichoice (DStv
and GOtv), Canal Plus and
StarTimes] accounted for
more than 90 per cent of
pay-TV subscribers in SubSaharan Africa by end-2014.
“However, we have outlined
plans for at least 30 major
platform launches in 2015
throughout this report – at
least twice as many as in
2014. Kenya has shown - and
will continue to show considerable digital TV
growth, but it may be
showing signs of
overheating. Kenya now
boasts two pay DTT
platforms, a cable network
and f