Nigeria’s entertainment, media revenues to double in 2018- PWC
A report by PriceWaterHouseCoopers has shown that Nigeria’s entertainment and media industries’ revenues will grow at a compound annual growth rate (CAGR) of 16.1 per cent from $4 billion in 2013 to an $8.5 billion in 2018. The revenues for the same industries in South Africa, which are expected to increase in value to R190.4 billion ($17.17 billion), trail behind Nigeria with a CAGR of 10.1 per cent.
Nigeria’s entertainment and media growth rates are the fastest growth rates in the world, according to the report.
CAGR is year-on-year growth rate of an investment over a specified period of time. PwC’s South African Entertainment and Media Outlook: 2014-2018, which contained these estimates also predicted that the Internet will be the key driver for Nigeria. According to the report, the number of mobile Internet subscribers in Nigeria is forecast to surge from 7.7 million in 2013 to 50.4 million in 2018.
The PwC report also revealed that the television market in Nigeria will become $1 billion-plus market in 2018 and the value would be derived from advertising, subscriptions and licence fees. The market is expected to grow steadily.
The current report, which is the fifth edition of PwC’s ‘South African Entertainment and Media Outlook’ presents annual historical data for 2009-2013 and provides annual forecasts for 2014-2018 in 12 entertainment and media segments.
The outlook includes historical and forecast data on the Internet, television, filmed entertainment, radio, recorded music, consumer magazine publishing, newspaper publishing, consumer and educational book publishing, business-to-business publishing, out-of-home advertising, video games, and sports. It gives a detailed breakdown of these sectors.
It contains forecasts for Nigeria, South Africa, and Kenya in 12 industry segments.
The report stated that Internet, by far the largest segment in South Africa, will witness increased access, which will generate more consumer spend than any other media product or service in the next five years in the South African entertainment and media industry,
Entertainment& Media Industries Leader for PwC South Africa, Vicki Myburgh, said: “Growth in the South African entertainment and media industry is largely being driven by the Internet and by consumers’ love of new technology, in particular mobile technology, such as smartphones and tablets, as well as applications powered by data analytics and cloud services. Technology is increasingly being driven by consumers’ needs and expectations.”
The Nigeria’s media and entertainment industries have been in the spotlight in recent times. The rebasing of the nation’s gross domestic product brought to the fore its significant contribution to economy.
In fact, with the rebasing, the value of the GDP stood at $510 billion (N80.2 trillion) and the entertainment industry, popularly called Nollywood, represented 1.2 per cent GDP.
BGL had, in its forecast, estimated that the media and entertainment industries will grow at 5 per cent GDP up until 2015.
According to its Research and Intelligence report titled: ‘The Nigerian Media and Entertainment Industry: More than fun, there is good money to be made’, “growth estimates reflect strong upsides as the media and entertainment industries are expected to grow at five per cent GDP up until at least 2015, with interest in Nollywood growing even from no less a body than the World Bank.”
[Today Internet Newspaper]
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