Alinah Motaung | Leader | Entertainment and Media | PwC Africa | mail me |
The Africa’s entertainment and media industry is expected to outpace global growth in the next five years. Internet advertising and streaming services will drive this growth.
Entertainment and media markets in South Africa, Nigeria, and Kenya are showing resilience despite global macroeconomic instability. Revenue growth in these leading African markets exceeds the global average of 3.9% CAGR through 2028. These insights are highlighted in our newly launched Africa Entertainment and Media Outlook 2024–2028 report.
Entertainment and media sector growth
Under the theme Resilience and Reinvention, we examine the drivers and inhibitors of growth in the sector across Africa. We also explored the latest trends and insights shaping the market over the next five years.
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South Africa
South Africa has the most well-established entertainment and media market compared to Nigeria and Kenya. Therefore, it will experience the slowest growth at a projected 4.2% CAGR through 2028. Growth will occur across most segments except print media. Over-the-top (OTT) streaming services and internet advertising are expected to grow the fastest. Stable internet connectivity and 5G adoption will support this growth. Video games and e-sports remain segments to watch, promising strong future growth.
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Nigeria
Nigeria ranks as one of the fastest-growing entertainment and media markets globally, with an 8.6% CAGR. Internet advertising, video games and e-sports, OTT, and music, radio, and podcasts will lead this growth through 2028. Internet advertising revenue is expected to more than double between 2023 and 2028.
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Kenya
Kenya’s entertainment and media industry, though the smallest of the three markets, will grow at a 5.2% CAGR through 2028. Internet advertising and OTT will drive this growth, contributing to Kenya’s position as the fastest-growing internet advertising market globally. Its internet advertising CAGR is projected at 17.4% through 2028.
Over the next five years, entertainment and media revenue in all three markets will exceed the global average of 3.9% CAGR. Revenue in South Africa is projected to grow from R295.3 billion (US$16.1 billion) to R363.2 billion (US$19.8 billion). Nigeria’s market value will grow from US$9.0 billion in 2023 to US$13.6 billion in 2028. In Kenya, revenue will rise from US$3.8 billion in 2023 to US$4.8 billion by 2028. This reflects resilience and expanding offerings in African markets, leveraging post-COVID-19 economic activity.
Key entertainment and media segment highlights
While it is expected that some entertainment and media segments will experience varied rates of growth, the overall industry across Africa is poised for growth. This growth will be driven by technological advancements, improved connectivity and increasing digital engagement.
– Charles Stuart, Entertainment and Media Partner at PwC South Africa
South Africa will remain the regional leader in scale. However, Nigeria and Kenya will grow faster, supported by young populations and broader economic development. Growth and advancements are notable across key entertainment and media segments.
Consumer spending: live events, gaming and OTT
Live music thrived across Africa. South Africa hosted globally renowned artists, including Imagine Dragons, Sting, Train, and Take That. The continent also hosted its first World New Music Days.
Nigeria and Kenya surpassed pre-COVID-19 ticket sales, while South Africa’s 2024 Calabash festival featured Maroon 5 and Keane. South Africa’s box office revenue rose by 33.6%, dominated by Hollywood hits. Domestic films had minimal impact. The sector is projected to recover pre-COVID-19 revenue levels by 2027.
In gaming, South Africa leads Africa’s video games and e-sports market, with mobile gaming dominating due to limited console and PC access. Carry1st partnered with Riot Games to launch local Valorant servers and player engagement campaigns. These efforts aim to strengthen the PC gaming scene.
Nigeria is enhancing its e-sports structure with support from the Nigerian e-Sports Federation and platforms like Gamr. Kenya uniquely generates more revenue from traditional gaming than social/casual gaming. Improving connectivity and smartphone access will narrow this gap through 2028.
Despite challenging conditions, the OTT market in Africa is growing with significant investments in infrastructure and content. OTT subscriptions are projected to increase despite recent price hikes and the removal of free tiers. South Africa will add nearly 1.6 million OTT subscribers by the end of the forecast period. The OTT segment will grow at an 8.5% CAGR in South Africa, 10.5% in Nigeria, and 10.9% in Kenya.
Rapid growth in internet advertising
Internet advertising is becoming the largest segment from a spend perspective across the industry.
Internet advertising is experiencing rapid growth globally. Nigeria and Kenya are seeing exceptionally high rates due to increasing internet penetration and digital platform adoption. AI and retail search are influencing this trend, driving significant growth in the entertainment and media industry.
Globally, internet advertising has accounted for most ad spend for several years. Currently, it represents 68.0% of total revenue. South Africa and Nigeria’s advertising sectors have reached this tipping point, with COVID-19 accelerating the industry’s development. Kenya lags this global trend. Its advertising sector still features almost equivalent spending on radio and broadcast TV.
GenAI is poised to have a big impact in Africa
The rapid growth of genAI is poised to impact industries globally, presenting both opportunities and concerns for job markets and ethics.
GenAI converts ideas into images, stories, or scripts. It simplifies production processes using text-to-video or text-to-game models. GenAI will disrupt the entertainment and media industry.
AI enhances content recommendation, user analytics, network optimisation, and customer support. Lionsgate partnered with Runway to train its genAI models. The African Union endorsed a Continental AI Strategy. Meta’s AI chatbot trials in African markets highlight growing regional engagement with AI technologies.
Mobile first connectivity
Africa’s entertainment and media growth is primarily driven by mobile services. Low fixed broadband penetration makes 4G and 5G network expansion crucial.
Mobile subscriptions far outpace fixed broadband. In South Africa and Kenya, 4G will overtake 3G by the end of 2024. Nigeria will follow by 2026. Africa lags globally, where 5G will surpass 4G by 2027.
Video content, particularly social video on platforms like TikTok and Instagram, dominates data consumption in South Africa. Games are also significant in Nigeria.
Looking ahead
Over the next five years, increased uptake of internet packages and investment in reliable mobile and fixed infrastructure will drive sector growth in Africa, enabling more consumers to access entertainment and media 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. 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.
– Nana Madikane, Technology, Media and Telecommunications Leader at PwC Africa
International interest underscores Africa’s potential. Wider adoption of AI tools will enhance content production, delivery, and marketing. AI will transform the global entertainment and media sector, significantly impacting Africa.
This report aims to guide entertainment and media leaders in navigating the coming years. It seeks to aid business model reinvention and access new revenue streams to move the industry forward.