Nigeria entertainment news today has estimated that Nigeria’s media and entertainment industry will generate an estimated revenue of up to $3 billion by 2021.
You should note that Nigeria is one of the fastest developing countries.
According to Nigeria entertainment news today, this figure ought to be treated with a lot of caution. This is because a lot of that growth will come from revenue generated from internet access.
For instance, about $450 million will be generated from web access revenue while video and TV will add about $200 million.
According to PwC report, considerable shifts are likely to affect Africa’s entertainment and media companies in the manner in which they generate revenue and compete.
Also, the quality of experience they offer to the consumers is likely to become the primary factor for revenue growth and differentiation.
To survive in a marketplace that is crowded and increasingly competitive; companies ought to focus on implementing effective strategies. Besides, they ought to build capabilities to engage with their customers.
It is estimated that the revenue of entertainment and media industry in South Africa is likely to hit R177.9 billion. This will be a significant increase from R132 billion in 2016.
Also, internet access will play a vital role in this growth, and it accounts for about R27 billion of the increase. Some of the sectors that are expected to enjoy a lot of growth are e-sports and virtual reality (VR) at 39.6% and 72.6% respectively.
However, these segments are relatively new. Thus, they represent only a small portion of the generated revenue.
Other African Countries
Apart from South Africa and Nigeria, other African countries are worth the mention. The PwC report focused on five-year forecasts of advertising and consumer spending in Kenya, Tanzania, and Ghana.
The 14 segments they considered include data consumption, internet, cinema, television, virtual reality, e-sports, magazine publishing, newspaper publishing, games, music, radio, and business-to-business publishing.
According to the report, the entertainment and media industry in Kenya had estimated revenue of $2.1 billion in 2016.
This represented a 13.6% increase from 2015. It is estimated that the industry will enjoy a growth rate of 8.5% compounded over the next 5 years. Thus, by 2020 it will have reached the $3 billion mark. This growth has been attributed to increased internet access.
Although Ghana’s entertainment and media industry has enjoyed considerable growth, the total revenue collected was only just above $200 million in 2012.
Since then it enjoyed a 25 percent growth rate per year that resulted in revenues hitting nearly $700 million in 2016. The revenue is estimated to double in over the next 5 years. Thus, by 2021 the revenue is estimated to hit $1.5 billion.
On the other hand, Tanzania’s entertainment and media industry generated revenue of $500 million in 2016. However, by 2021, it is estimated to reach $1 billion.
The Nigeria entertainment news today concludes that companies that want to benefit from shifting consumer preferences must be ready to disrupt their business models.
This is necessary to align their models to focus on user experience as their competitive advantage. Thus, they need to harness data and technology to retain and attract more customers.
What do you think?