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from the Internet. The music market was
worth R2.01 billion in 2014, compared to
R2.08 billion in 2013. Annual revenue is
forecast to grow marginally by a CAGR of 1.3%
over the next five years to remain relatively
flat at R2.1 billion in 2019.
Television remains a highly significant
contributor to consumer spending, with
combined revenues from TV subscriptions,
advertising and licence fees projected to reach
R40.9 billion by 2019. The report also shows
that one consistent trend – and not just in
South Africa, but globally – is the rise in
overall consumer spending through to 2019 on
video-based content and services, against far
flatter prospects for spending on primarily
text-based content and services. If consumer
revenue from TV subscriptions and licence
fees is aggregated with that from video games,
around R4.5 billion will be added between
2014 and 2019.
In contrast, consumer revenue from books,
magazines and newspapers is expected to rise
by just R1.3 billion over the entire forecast
period.
Alongside video providers, a further
thriving source of revenue over the coming
five years will be live events. Revenue from
live music is expected to grow at a CAGR of
7.9% in the next five years, reaching R1.5
billion in 2019, up from R1 billion in 2014.
Box office revenues are also steadily increasing
at a CAGR of 3% to reach R972 million by the
end of the forecast period.
The appeal of live entertainment has also
had a positive effect on the related advertising
revenues. South African cinema advertising
revenue is also rising at a CAGR of 6.7% and
will be worth an estimated R884 million in
2019. “It is clear that consumers value – and
are willing to pay a premium for – real-life
Pay-TV in 21% of East
African TV
households
The five countries of the
East African Community
(EAC) had a total population
of 146.89 million at the end
of 2014, with 33.61 million
households and a TV
household penetration rate
of 23%, according to
research firm Dataxis.
Kenya is the most
developed market in the
region with 12.04 million
households and a TV
household penetration rate of
32%. Uganda has 7.35 million
20 Africa Briefing
physical entertainment experiences, and these
in turn are the types of consumers that
advertisers wish to target,” adds Myburgh.
The report shows that South Africa’s total
entertainment and media advertising revenue
is expected to rise by 5.6% from R39.7 billion
in 2014 to R52.1 billion in 2019. TV
advertising is by far the largest contributor to
total advertising revenues, followed by
newspaper advertising: however, their
combined 52% share of total advertising in
2014 will fall slightly to 51% in 2019.
Despite the strong projections for
advertising, its share of the entertainment and
media mix is predicted to decrease by 2019 as
consumer spending takes an ever larger part
of the pie; from 35% in 2014, advertising will
account for just 30% of spending in 2019.
“Affordable Internet access will continue to
digitally disrupt the market in novel and
innovative ways. The ongoing spread of
services to mobile networks, novel devices and
emerging markets will change how media and
entertainment are served, consumed and
monetised in multiple ways. Affordable
Internet access will also inhibit the revenue
growth of various sectors as consumers use it
to access free, ad-funded and lower-priced
subscription-based versions of new and
existing media services,” says Myburgh.
Nigeria
Nigeria’s entertainment and media market
grew by 19.3% in 2014 to reach US$4 billion.
By 2019, the market will be more than twice
as big, with an estimated total revenue of
US$8.1 billion. As in South Africa, the
Internet will be the key driver of growth for
Nigeria. Television, comprising revenue from
TV advertising and subscriptions, is the other
main driver.
households and a TV
household penetration rate of
25%, followed by Tanzania
with 9.8 million households
and a TV household
penetration rate of 17%.
The firm’s Pay-TV/ FTA
Broadcasting in East African
Community report highlights
that pay-TV services
accounted for approximately
1.61 million households in
2014, meaning that free-toair (FTA) broadcasting is still
the primary access method in
over 79% of TV households.
Tanzania had the largest payTV base in the region with
592,700 users, accounting
Excluding Internet access, television,
filmed entertainment and video games are
the areas where Nigerian consumers are
expected to spend the most over the next five
years.
Consumer spend on video games and
music is set to see the sharpest rise in
forecast CAGRs at 14.3% and 11.4%,
respectively. Piracy continues to remain a
problem [