PwC projects 85% revenue growth by Nigeria’s Media, Entertainment from Internet access
A top global consulting firms PwC has projected that Nigeria’s Entertainment and Media (E&M) industry’s revenue will rise from $7.68 billion in 2021 to $14.82 billion in 2025.
This, as contained in the firms recent industry report, PwC said internet access, a major segment in the Entertainment and Media industry, will generate 85 percent of the country’s Entertainment and Media revenue by 2025.
With the rising demand for streaming services due to the pandemic imposed lockdown and work from home policy, the internet access revenue segment in Nigeria is expected to gain more market share in the next few years, the report forecasts. Internet access based services such as subscription video-on-demand (SVOD), over-the-top (OTT), transactional video on demand (TVOD), are projected to have robust growth from now through 2025.
AfricaHousingnew.com observed that this is evident as Musicians, comedians, and other players in the entertainment and media industry, after releasing songs appeals to their fans to stream online as they generate money from online stream more than they do through the sales of their CDs which is already phasing out.
Insight from the report reveals that Internet access segment’s revenue accounts for 78 percent of the country’s E & M industry revenue, a noticeable improvement in 2016 when it accounted for 61 percent of the entertainment and media industry’s revenue in Nigeria.
Revenue generated by players in Nigeria’s E & M’s industry is expected to rise from $7.68 billion in 2021 to $9.03 billion in 2022, to $10.66 billion in 2023, and will increase further to $12.56 billion in 2024 before settling at $14.82 billion by 2025, culminating to an average growth rate of 18 percent during the period.
Internet access segment’s revenue accounts for 78 percent of the country’s E & M industry revenue, a noticeable improvement in 2016 when it accounted for 61 percent of the entertainment and media industry’s revenue in Nigeria.
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There has been a major shift in the entertainment and media industry in recent times, Changes in consumer behaviour have driven powerful shifts in Entertainment & Media business models. Foremost among these shifts is the way the streaming boom of 2020 has set the industry on a new growth trajectory.
The PwC report provides forecasts on thirteen business segments in Nigeria’s entertainment and media industry. These are business to business, consumer books, traditional TV and home video, OTT video, internet access, as well as newspaper and consumer magazine.
Others are out-of-home advertising, video games and esports, VR, TV advertising, Cinema, internet advertising, and then Music, radio, and podcast. In all of these business segments in Nigeria’s E & M industry, only internet access is projected to gain more market share from 78 percent in 2021 to 85 percent in 2025. In other words, internet access’ revenue in the E & M industry in Nigeria will rise from $6.02 billion in 2021 to $12.5 billion by 2025, PwC says.
The traditional TV and home video market segment is the second biggest market in Nigeria’s E & M industry. However, due to competition from other sources, its market share is projected to decline from 9 percent in 2021 to 6 percent in 2025, corresponding to from $692 million in 2021 to $865 million in 2025.
The Cinema segment’s revenue, which declined due to the pandemic imposed lockdowns and subsequently reduced to $2 million in 2020 with a slight rise to $7 million in 2021, is expected to rise to $12 million by 2025.
On the contrary, the market share of newspaper and consumer magazine, out-of-home advertising, and TV advertising segments are expected to reduce to 1 percent each by 2025, with their revenue in five years’ time at $173 million, $158 million, and $179 million respectively.
