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.
According to a latest report by PricewaterCoopers (PwC) “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.