The Entertainment and Media (E&M) sector across South Africa, Nigeria, and Kenya is proving to be resilient and adaptive in a time when global economic uncertainties are putting pressure on numerous markets.
This positive trend is outlined in PwC’s newly launched Africa Entertainment and Media Outlook 2024–2028 report, which reveals that these leading African markets were flourishing with revenue growth that outpaces the global average projected at a compound annual growth rate (CAGR) of 3.9% through 2028.
The report delves into the factors propelling this growth, alongside potential obstacles, while identifying critical trends that will shape the industry over the next five years.
According to the report, South Africa boasts the most developed E&M market on the continent, albeit with a slower growth forecast of 4.2% CAGR until 2028.
Most segments are expected to witness expansion, particularly over-the-top (OTT) streaming services and internet advertising. According to PwC, the anticipated rise in consumer access to stable internet, bolstered by 5G adoption, is likely to drive this growth.
In stark contrast, Nigeria enters the spotlight as one of the fastest-growing E&M markets globally, with a striking CAGR of 8.6%. Key segments for growth in Nigeria encompass internet advertising, video games and esports, OTT, and music, radio, and podcasting, with internet advertising revenue predicted to more than double by 2028.
Meanwhile, Kenya, though the smallest market among the trio, is projected to register a robust growth rate of 5.2% CAGR, positioning its E&M landscape as a significant player as well. Its internet advertising market is set to grow at an astounding CAGR of 17.4% through 2028, highlighting a rapidly increasing appetite for digital engagement.
Alinah Motaung, PwC Africa Entertainment and Media Leader, said E&M revenue was expected to rise ahead of the global average of a 3.9% CAGR in all three markets over the next five years.
“E&M revenue in South Africa is projected to increase from R295.3 billion ($16.1bn) to R363.2bn, while in Nigeria, the market value is projected to grow from $9.0bn in 2023 to $13.6bn in 2028,” Motaung said.
“In east Africa, revenue is projected to reach $4.8bn in Kenya at the end of the forecast period, up from $3.8bn in 2023. This tells a positive story—not only of resilience, but of African markets that are expanding their offerings and capitalising on post-COVID economic activity.”
The report further underscores the evolving nature of consumer consumption in the E&M space, predominantly driven by live events, gaming, and OTT services.
Live music events are gathering momentum across Africa, with South African festivals attracting international headliners such as Maroon 5 and Imagine Dragons, while ticket sales in Nigeria and Kenya have surpassed pre-pandemic figures.
South Africa’s cinema sector is also rebounding, showing a 33.6% surge in box office revenue, even as local films grapple for prominence amidst Hollywood dominance.
Gaming is another vibrant segment, with South Africa at the forefront of Africa’s esports landscape. Mobile gaming dominates due to accessibility issues surrounding consoles and PCs.
Efforts in South Africa, such as collaborative ventures to enhance local game offerings, and Nigeria's structured support for esports, show significant promise.
Conversely, Kenya remains unique with traditional gaming still outperforming casual gaming, although this gap is expected to narrow thanks to improving connectivity and the proliferation of smartphones by 2028.
Nana Madikane, PwC Africa Technology, Media and Telecommunications Leader, said increased uptake of internet packages and investment in reliable mobile and fixed infrastructure will drive sector growth in Africa over the next five years, enabling more consumers to access E&M products and services.
“As internet access expands, businesses will need to focus on digital transformation, leveraging social media and mobile platforms to engage Africa’s young demographic with personalised, data-driven advertising,” Madikane said.
”This digital shift will also boost content production in OTT and music, with an emphasis on localisation and cultural representation to attract both local and global audiences.”
BUSINESS REPORT