Showbiz
Nigeria Will Add $2.8b, Kenya $3.2b, SA $13.4b to E&M Sector by 2021—Report
By Dipo Olowookere
A report by PwC titled ‘Entertainment and Media Outlook: 2017 – 2021: An African Perspective’ has revealed that during the period under review, Nigeria will contribute about $2.8 billion to the Entertainment and Media industry.
According to the report, “In terms of total E&M revenue, Nigeria is one of the fastest-growing countries in our Outlook, but this figure must be treated with caution, as a huge proportion of that growth comes from Internet access revenue alone–specifically mobile Internet access revenue.
“Of the $2.8 billion that the Nigerian market will add between 2016 and 2021, all but $452 million will come from Internet access revenue. The combined elements of TV and video will add nearly $200 million in revenue growth to 2021.”
PwC, in the report, explained that the Outlook was a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana and Tanzania) and 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business publishing, music, out-of-home, and radio.
The report further pointed out that it observed significant shifts are underway in how Africa’s E&M companies compete and generate value, as the quality of the experience they deliver to consumers becomes their primary basis for strategic differentiation and revenue growth.
To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.
It said for Kenya, “The E&M industry was worth $2.1 billion in 2016, up 13.6 percent on 2015. Revenue is forecast to grow at an 8.5 percent CAGR over the next five years, hitting the $3 billion mark in 2020, and totalling $3.2 billion in 2021.
“Internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021.”
However for Ghana, its E&M industry is beginning to gear up.
“In 2012, total revenue was just at $214 million, but four consecutive years of year-on-year growth above 25 percent have led it to revenues of $685 million in 2016. This is forecast to more than double over the next five years, with revenues of $1 billion being surpassed in 2019 and a total of $1.5 billion forecast for 2021, thanks to a 16.5 percent CAGR,” the report stated.
According to PwC, “Tanzania’s total E&M revenue stood at $504 million in 2016, but is set to more than double to $1.1 billion in 2021, a 17.2 percent CAGR over the coming five years.
“The symbolic crossing of the $1 billion mark is set to occur in 2021. This is significant growth from 2012 where the industry stood at just $175 million.”
The report, in its analysis of the South African market, said by 2021, total E&M revenue in the country is expected to reach R177.9 billion (about $13.4 billion), up from R132.7 billion in 2016.
It noted that internet access remains the key growth driver and will account for R27 billion of this increase.
The fastest growing sectors will be virtual reality (VR) and e-sports compounded annually at 72.6% and 39.6%, although these segments are still new revenue lines and remain the smallest in terms of absolute revenue numbers. Although overall growth in revenue will hold up, it is expected to slow down by the end of 2021.
“Companies that wish to capture value amid shifting consumer preferences and business model disruptions must focus on an increasingly prominent source of competitive advantage: the user experience. They must harness technology and data to attract, retain and engage users–and convert them into devoted fans,” says Vicki Myburgh, Entertainment and Media Industry Leader for PwC Southern Africa. These imperatives assume a larger importance because, as we document in the Outlook, the entertainment and media industry is confronting several challenges to continued top-line growth.
Digital spend will continue to drive the overall growth. Nearly 40% of total spend will be derived from Internet access in revenue. South Africa’s mobile Internet penetration is forecast to rise to 77.8% by the end of 2021 from 52.3% in 2016. This increased Internet penetration will drive mobile Internet access revenues, which are projected to grow by a CAGR of 10.7% to nearly R62 billion.
South Africa can expect a CAGR of 7.2% for consumer revenue over the forecast period, rising from R87.4 billion in 2016 to R123.7 billion in 2021. The largest contributor will be Internet access, with a 48% share in 2016 rising to 56% in 2021.
South Africa continues to remain the largest TV market on the African continent, with total revenues of R40.9 billion in 2016. The total TV market is estimated to be worth R51.2 billion by 2021. At this time, end-user spending (Pay-TV subscriptions, physical and Internet home video and license fees) will account for 56.7% of the total TV market.
The video game market is also performing well and revenue is forecast to grow at a CAGR of 15.4% to reach R5.4 billion in 2021, up from R2.6 billion in 2016. The primary growth driver in the video games market is social/casual gaming revenue, which will be worth R3.7 billion by 2021. Furthermore, the console and PC markets are experiencing a significant shift towards digital and online/micro transaction revenue, which will exceed physical sales for the first time in 2020.
The growing interest in gaming is helping to fuel the rapid growth in the related segment of VR and e-sports. As a segment that only reached consumers in 2016, almost the entire VR market is new. According to the Outlook, the consumer VR content market will be worth R455 million by 2021. Of this, R282 million will be spending on VR video.
Alongside video, the B2B market is showing continued growth. In 2016 revenues grew by 3.8% to R9.7 billion and by 2021 this is forecast to rise to R11 billion, a CAGR of 2.6%. The slowdown in growth is largely attributable to ongoing macroeconomic challenges which are likely to weigh on B2B revenues.
The South African cinema sector currently presents a mixed picture. Overall revenue, including box office and cinema advertising, is expected to reach R2.2 billion in 2021, up from R1.9 billion in 2016. South Africa continues to be an attractive destination for international filmmakers. Although some short-term economic and political issues are impacting the film sector, it is expected in the long term to continue to expand.
South Africa’s music industry is on a growth curve with live music being a key driver. Live music revenue is expected to rise from R1.2 billion in 2016 to R1.7 billion in 2021, a CAGR of 7.4% over the forecast period.
It is notable that only one digital subcomponent is seeing a significant decline in the entire Outlook – digital music downloading revenue, which is forecast to see a -15.7% CAGR, as consumers shift from ownership to access. Digital music streaming revenue is forecast to rise at a CACR of 34.5% to 2021, reaching R518 million in that year. This growth rate is only beaten by new revenue lines from VR and e-sports.
Among the largely non-digital segments, magazines and newspaper revenue are set to continue their decline. Total newspaper revenue in the South African newspaper market has been unpredictable. The market showed growth in 2013, declined in 2014 and bounced back marginally in 2015, contracting at a slower rate. In 2016, total newspaper revenue was worth R8.9 billion, but this figure is forecast to drop to R7.4 billion in 2021. Marginal growth is expected for the book publishing industry over the next five years. The educational book market will contract by a -0.1% CAGR. On the contrary, professional titles and consumer books will exhibit some growth as e-book revenues continue to grow.
The report shows that South Africa’s total entertainment and media advertising revenue is expected to rise to R54.2 billion by 2021 from R45.3 billion in 2016, representing a 3.7% CAGR. TV advertising remains dominant, but in terms of absolute growth it is Internet advertising that is almost an equal contributor, helped by a sizeable 12.9% CAGR.
Myburgh says: “It is clear that something fundamental has changed in the entertainment and media industry. E&M companies that have become accustomed to competing and creating differentiation, based primarily on content and distribution, need to focus more intensely on the user experience. The marketplace has increasingly become more competitive, slower-growing and dependent on personal recommendations.
“Thriving in this new world of intense competition and continual disruption will be challenging. The opportunities are, however, immense. Across the industry, the resulting quest to create the most compelling, engaging and intuitive user experiences is now the primary objective for growth and investment strategies, with technology and data at the centre.
“Accordingly, companies will need to develop strategies to engage, grow and monetise their most valuable customers: their fans.”
Showbiz
More Than TV: How GOtv Empowers Local Businesses to Retain Customers
In today’s competitive landscape, customer experience is paramount for any thriving business. Throughout Nigeria, entrepreneurs are recognising that ensuring customer satisfaction is as crucial as driving sales. The age-old adage remains true: a satisfied customer is a paying, returning customer.
Businesses across various sectors are constantly seeking innovative ways to boost customer satisfaction, whether through exceptional service, friendly interactions, or even the content displayed on television. While this last detail might appear trivial, it can significantly impact the experience for many small business owners.
The Importance of Engaging Content
Imagine sitting in a quiet waiting room surrounded by outdated magazines compared to being in a lively barbershop where a thrilling football match is on, or a bustling restaurant where patrons can catch up on the evening news while they wait for their meals. The contrast is striking: one scenario feels tedious, while the other is vibrant and engaging.
For local businesses, the objective extends beyond merely passing the time. It’s about turning those waiting moments into enjoyable experiences. When customers are entertained, they lose track of time. A ten-minute wait for a haircut seems to fly by, and a lengthy salon appointment becomes much more pleasant when a captivating Nollywood drama or a trending reality show is playing.
The Ripple Effect on Your Bottom Line
Entertainment plays a crucial role in shaping customer perceptions of a business. A friendly and inviting atmosphere encourages patrons to linger longer, spend more, and return frequently. It also fosters patience during minor delays. Over time, these positive experiences cultivate customer loyalty and generate valuable word-of-mouth referrals, which are essential for the growth of small businesses in Nigeria.
This is where GOtv for business transcends mere background entertainment. It becomes an integral part of a deliberate customer experience strategy. With its wide array of local and international content, GOtv enables businesses to create memorable and inviting environments that customers will cherish and recommend.
Making It Work for Your Business
For small business owners managing tight budgets, adding entertainment can seem like an unnecessary cost. GOtv, however, provides a practical and affordable solution. Its packages are designed with flexibility in mind, allowing businesses to choose content that matches their audience and operations, whether it is a neighbourhood barbershop, a small restaurant, or a community viewing centre.
Sports bars can stream live Premier League and AFCON matches, bukkas can play Nollywood films or music channels, and salons can keep clients engaged with lifestyle and reality shows. GOtv’s affordability means the cost of subscription can easily be offset by the increase in customer retention and repeat visits.
Some businesses even turn their GOtv programming into marketing opportunities, offering match-day discounts, themed events, or special viewing nights. These ideas not only attract new customers but also encourage existing ones to return.
The Bigger Picture
At its core, this goes beyond just television. It emphasises the importance of detail in competitive markets, where success hinges on every facet of the customer experience. From the quality of service to the ambience within your establishment, each element influences how customers perceive and remember your business.
While having GOtv available does not substitute for excellent service or fair pricing, it enriches the atmosphere and fosters a deeper connection with customers. For numerous local business owners, it has emerged as a small yet impactful tool for cultivating loyalty and enhancing community engagement.
By transforming routine visits into memorable shared experiences, GOtv empowers small businesses throughout Nigeria to do more than simply entertain their patrons; it plays a crucial role in encouraging repeat visits and customer retention.
Showbiz
Canon Supports Nora Awolowo’s Racket Queen Short Film
By Modupe Gbadeyanka
A new short film shot by a Nigerian filmmaker, Ms Oreoluwa Racheal Awolowo, otherwise known as Nora Awolowo, has received the backing of the leader in imaging technology, Canon.
The film, Racket Queen, shot entirely on the Canon EOS C400 cinema camera, was screened in Lagos recently with several stakeholders in attendance, including journalists from across arts, culture, entertainment, business, and technology publications, as well as other filmmakers, peers, and Canon’s creative network.
The production was a testament Ms Awolowo’s creative excellence, visual storytelling finesse, and technical mastery, with her work speaking powerfully for itself.
Canon said it partnered with the filmmaker because her work aligns with its Innovation, Customer, and Employee Experience (ICE) strategy, which focuses on innovation, customer empowerment, and long-term partnerships.
By enabling filmmakers with cutting-edge imaging technology, Canon reinforces its position as the go-to brand for professional videography in Nigeria and across Africa.
“At Canon, we believe in the power of storytelling and the importance of equipping creators with the right tools to express their vision.
“Our collaboration with Nora on Racket Queen reflects how technology and artistry come together to elevate filmmaking in Africa.
“We’re proud to continue empowering creators and building a thriving creative community across the region,” the B2C Business Unit Director for Canon Central and North Africa, Mr Rashad Ghani, said.
The Canon EOS C400, designed for professional filmmakers, played a pivotal role in capturing the film’s striking visuals and emotional depth, showcasing Canon’s ongoing commitment to supporting the region’s creative community with advanced imaging tools.
The company used the event to feature a soft launch of its new EOS C50, an entry-level cinema camera designed to empower emerging filmmakers.
Compact yet powerful, the C50 expands Canon’s professional cinema lineup, making high-quality production more accessible to new creators.
Showbiz
Content Creators Must Develop Clear Personal Brand Identity—Nitro 121 Boss
By Aduragbemi Omiyale
Content creators have been advised to go beyond aesthetics or trends to focus on value, purpose, and agility.
This advice was given by the chief executive of Nitro 121, Mr Lampe Omoyele, during his keynote address at the UBA Business Series held last Thursday at the Tony Elumelu Amphitheatre in UBA Head Office, Marina, Lagos.
At the event themed Content that Converts: Building Influence and Driving Growth Through Strategic Marketing, he said, “You can create something out of what appears to be nothing.”
He also charged content creators to aim to make a difference by developing a clear personal brand identity and remain consistent in delivering messages that resonate with their audience.
The UBA Business Series, held every quarter, brings together some of Africa’s most dynamic digital entrepreneurs and influencers to discuss the secrets behind building impactful online communities.
At this last edition, it featured an impressive line-up of digital entrepreneurs and content creators, including Digital Creator and Actor, Elozonam Ogbolu; Digital Health Educator, Chinonso Egemba (Aproko Doctor); Kenyan Actress and Media Entrepreneur, Catherine Kamau; Content Creator, Nasiru Lawal (Nasboi) and Digital Influencer, Enioluwa Adeoluwa, who was also the moderator of the event.
“For the younger creators here, my best advice is this: please prioritise your growth. As a creator, the moment you become famous, you no longer move at your own pace; you move at the people’s pace. It is therefore important to ensure you grow consistently and then overtime, the recognition and the money begins to roll in,” Nasiru Lawal stated.
Re-echoing this, Elozonam Ogbolu said, “Content creators have to engage their audience with proper storytelling, because brands are always out to carefully choose their creators. For the brands, you must pick your influencer or ambassador very deliberately and work together over time to grow. That is when you will see a proper return on investment.”
In his submission, Chinonso Egemba, said, “If you’re building a business or doing content creation, treat content creation as a business. When you treat it as a business, it needs proper structure. Otherwise, it won’t last. If you don’t put structure in place, you’ll end up responsible for everything, and that leads to burnout. You have to build structure, because if you want longevity, structure is very essential.”
For Catherine Kamau, “What I realized is I have a community that keeps me grounded, and that’s family. When you get famous, you tend to forget where you come from, you know, social media is an illusion and you start assuming that it is your real family until bad things happen to you. So please remember the real people in your life, because fame can get to your head, but those are not the people who are going to have your back when things go south.”
While welcoming the participants, the Group Head of Digital Banking at UBA, Mr Kayode Olubiyi, reaffirmed the bank’s commitment to empowering entrepreneurs across Africa through knowledge-sharing and capacity-building initiatives such as the Business Series.
On her part, the Group Head of Marketing and Corporate Communications, Ms Alero Ladipo, praised the management of the lender for organising conversations like this because of its positive impact on the economy.
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