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Nigeria’s Showbiz/Media Sector Will Generate $9.9b Revenue by 2022—PwC

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Nigeria's Showbiz/Media Sector Will Generate $9.9b Revenue by 2022—PwC

By Modupe Gbadeyanka

A new report by PwC has disclosed that the entertainment and media (E&M) industry in Nigeria will generate a revenue of $9.9 billion by 2022 from the $3.8 billion raked in 2017.

In its ‘Entertainment and Media Outlook: 2018 – 2022: An African Perspective’ released today and obtained by Business Post, PwC said last year, Nigeria saw a huge 25.5 percent rise in E&M revenue, although $605 million of this $764 million rise was attributable to Internet access.

“A 21.5 percent CAGR rate is anticipated to 2022, with revenue reaching $9.9 billion in that year. Again, Internet access revenue will account for 89.6 percent of this absolute growth,” the report said.

PwC noted that in report that Africa’s entertainment and media industry has entered a dynamic new phase, a third wave of convergence.

It said the borders that once separated E&M, technology and telecommunications industries are blurring in the battle for the attention of the consumer in a world that is rapidly digitising.

As the mobile device cements itself as the pre-eminent source of the E&M experience, the most disruptive, forward-thinking companies are striving to create an integrated ecosystem suited to this consumer-driven dynamic, it said further.

According to PwC, by 2022, total E&M revenue in South Africa is expected to reach R177.2 billion, up from R129.2 billion in 2017. Internet (access and advertising) is expected to grow at a compound annual growth rate (CAGR) of 11.3 percent over the forecast period to reach R91.2 billion, up from R53.4 billion in 2017.

Overall E&M growth will be less reliant on Internet access revenue as organic growth opportunities in Internet connections start fading towards the end of the forecast period. Internet advertising will greatly exceed TV advertising in terms of growth, leading the way with a 13 percent CAGR over the forecast period to reach R9.4 billion and overtake TV advertising spend in 2022.

The Outlook is 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 (b2b), music, out-of-home (OOH) and radio.

Vicki Myburgh, Entertainment and Media Leader for PwC Southern Africa, says: “It’s clear we’re in a rapidly evolving media ecosystem that’s experiencing Convergence 3.0. In Convergence 3.0, the dynamics of competition are evolving while a cohort of ever-expanding super competitors and more focussed players strive to build relevance at the right scale. And business models are being reinvented so all players can tap into new revenue streams, by, for example, targeting fans and connecting more effectively with customers to develop a membership mind-set.

“The pace of change isn’t going to let up anytime soon. New and emerging technologies such as artificial intelligence and augmented reality will continue to redefine the battleground. In an era when faith in many industries is at a historically low ebb and regulators are targeting media businesses’ use of data, the ability to build and sustain consumer trust is becoming a vital differentiator.”

South Africa’s E&M industry faced a challenging year in 2017 amidst economic and socio-political uncertainty. Total E&M revenue rose at a comparatively low rate of 6.8% year-on-year to R129.2 billion. A bounce-back in 2018 sees an anticipated 7.6% year-on-year growth, while the CAGR to 2022 is forecast at 6.5 percent.

South Africa will see a strong CAGR of 7.6 percent for consumer revenue to 2022, moving from R93.9 billion in 2017 to R135.7 billion in 2022. Beyond revenue from the Internet segment (buoyed by apps revenue) there are many success stories, most notably that of video games, which will surpass books, magazines and B2B to become the third-highest contributing consumer segment.

There is a striking difference in growth between digital and non-digital revenue, which have CAGRs of 11.4 percent and 1.8 percent respectively. Put another way, digital revenue will add R41.3 billion and non-digital revenue R6.7 billion in absolute terms to 2022. The non-digital elements of five different segments – books, magazines, newspapers, OOH and video games – will all decline to 2022.

Within this overall increase, the fastest revenue growth will be in the digitally driven segments. Virtual reality will lead the way, albeit from a low base, at a five-year CAGR of 55 percent to reach R671 billion in 2022, from R75 billion in 2017.

“The exceptional growth in VR reflects the excitement in this space. VR devices and experiences are in the early stages of being accepted by the mainstream, as VR now emerges as a viable long-term platform for unique, immersive experiences, attracting major investment from media and technology companies eager to seize a share of this fast-growing market,” Myburgh adds.

After a breakthrough year, South Africa’s total e-sports revenue is forecast to rise from R29 million in 2017 to R104 million in 2022, a CAGR of 29 percent. A host of high profile events in 2017 helped to propel e-sport further towards the mainstream, and a number of similar events have been and are being held this year.

A booming social/casual sector is driving strong growth in the video games segment. Total revenue is forecast to rise from R3.1 billion in 2017 to R6.2 billion in 2022, a CAGR of 15 percent. TV and video will continue to be a major driver of consumer spend. Following growth at 4.8 percent CAGR over the forecast period, the total TV market will be worth R40.8 billion by 2022.

The shift from physical to digital media has been one of the core drivers of the global and local E&M market for many years. But different media segments have experienced strongly contrasting patterns of digitisation. In some cases, consumers have been quick to drop physical formats and embrace digital alternatives at the first opportunity.

Although the growth rate for physical books is moderate, it is notable that books are performing far better than any other non-digital sector.

“Permanency and collectability may be the reason for this. Books are seen as collectibles often owned and displayed for many years, making the loss of their physical presence more significant,” explains Myburgh.  Although books currently seem to have the best prospects of any physical media format, they are, like every other media segment, just one disruptive digital competitor away from major upheaval.

Newspapers and magazines will see revenues decline over the next five years. In 2017, total newspaper revenue fell by – 2.9 percent to R8.6 billion. The forecast for the years ahead is for decline at -4 percent CAGR. By 2022, South African total newspaper revenue is expected to drop to R7 billion.

Despite 24/7 access to media and entertainment, the appeal of shared, live experiences still attracts audiences. Music events still draw large crowds, with ticket sales set to see an 8.0 percent CAGR to 2022, helped by major tours from popular crowd-pulling acts in 2018.

Recovering admissions and rising ticket prices together with improved offerings will see box office revenue deliver modest growth at a 3.5 percent CAGR through 2022. South African audiences are prepared to pay a premium to watch big-budget films with surround sound, vibrating seats, temperature change, strobe lights and so on. Radio continues to have a solid listener base in South Africa, and a weekly reach of 91 percent. Radio revenue is projected to rise 3.9 percent CAGR over the forecast period to surpass the R5 billion mark in 2022.

Chat apps and social platforms have become an increasingly important part of day-to-day life for consumers, both in South Africa and worldwide. As usage and entertainment rise, key players from across the E&M industry have teamed up with these platforms, growing them into ‘one-stop shops’ for consumer needs.

The report shows that advertising in the E&M industry was mostly affected by South Africa’s economic environment, with cautious growth of just 1.9 percent year on year. An improvement is expected to 2022, with a 3.3 percent CAGR bringing total advertising revenue to R41.5 billion, from R35.3 billion in 2017. New technologies and devices like artificial intelligence (AI), virtual and augmented reality, voice-based smart home devices and virtual assistants look set to drive innovation in online advertising on a global scale in the coming years.

The report also said Kenya’s E&M industry saw 17 percent year-on-year growth in 2017, again propelled by growth in the Internet sector. An 11.6 percent CAGR will take the country to $2.9 billion in 2022, from $1.7 billion in 2017. Outside of the Internet space, TV and video revenue dwarfs the other segments.

In addition, Ghana’s E&M industry has more than tripled in value since 2013. Total revenue reached $752 million in 2017. It is forecast to surpass $1 billion in 2019 and to total $1.5 billion in 2022, increasing at a 14.2 percent CAGR. As with Nigeria and Kenya, Internet access spend accounts for much of this revenue and growth. Ghana is in a strong position for further E&M growth as revenue gains critical mass over the next five years.

It further said total E&M revenue in Tanzania stood at $496 million in 2017, having risen 28.2 percent year on year. Continued momentum at an 18.3 percent CAGR will see revenue reach $1.2 billion in 2022, 2.3 times the size of the market in 2017. Tanzania’s E&M revenue make-up is ostensibly similar to that of Ghana, although here Internet revenue takes a slightly less dominant position.

Between them, the five countries considered in the Outlook will, driven by Nigeria, add $12.4 billion in revenue from 2017 to 2022, at a combined CAGR of 11.9 percent. Although much of this will fall into the hands of telcos, there are significant opportunities for content providers too. The engine of growth here will be organic, with increased populations and gradually increasing disposable income swelling the ranks of potential E&M consumers – and ever-increasing Internet access greatly expanding the range of E&M opportunities available.

“To succeed in the future that’s taking shape, companies must re-envision every aspect of what they do and how they do it. It’s about having, or having access to, the right technology and excellent content, which is delivered in a cost-effective manner to an engaged audience that trusts the brand. For those able to execute successfully, the opportunities are legion,” Myburgh concludes.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Davido, D’Banj, Others for YouTube Africa Day Concert 2022

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YouTube Africa Day Concert 2022

By Dipo Olowookere

Music stars from five countries (Congo, Nigeria, Sierra Leone, South Africa and Tanzania) will perform at the YouTube Africa Day Concert 2022 slated for Wednesday, May 25.

The annual concert is a musical homage to Africa, showcasing the vibrant African music stars who are making headlines across the world.

The programme, in its third edition, will be anchored by Hollywood star, Idris Elba and streamed exclusively on YouTube via https://goo.gle/AfricaDayConcert at 19:00 CAT/18:00 WAT.

It will bring together Africans, the Diaspora, and people from across the world together to celebrate a continent that is home to more than 1.5 billion people.

The highly anticipated event will showcase musical performances from D’banj, Davido, CKay, Yemi Alade, Reekado Banks and Mayorkun.

Also performing from the West African region is popular Sierra Leonean recording and performing artist, Drizilik; singer-songwriter and poet, Busiswa Gqulu; and singer and dancer, Kamo Mpela; both from South Africa. They are known for hit songs, SBWL and Nkulunkulu respectively.

Tanzanian singer, songwriter and WCB (Wasafi Classic Baby) artist, Zuchu will be performing her hit songs at the concert while Congolese singer-songwriter, Innoss’B, the Naomi Campbell crooner rounds out the lineup of artists performing this year at the Africa Day Concert.

The Managing Director, Emerging Markets, YouTube EMEA, Mr Alex Okosi, while speaking ahead of the concert, disclosed that, “YouTube as a platform has been mainline for connecting African artists to people all around the world and the Africa Day Concert is an opportunity to reaffirm YouTube’s support for African artists as they showcase the vibrant sounds and culture that makes Africa truly unique.”

The concert is aimed at commemorating the foundation of the Organisation of Africa Unity on May 25, 1963, by using music as a platform to showcase African culture.

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Progress Emerges Nigerian Idol Season 7 Winner

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Progress Nigerian Idol

By Aduragbemi Omiyale

Budding singer, Progress, has won the seventh edition of the popular music talent hunt show, Nigerian Idol.

Progress was announced as the winner of the programme at a live event held on Sunday, May 22, 2022.

He defeated another contestant, Zadok, to become the Nigerian Idol Season 7 winner, after raking in the higher number of votes between the pair.

When the host of the reality show, IK Osakioduwa, announced the winner, Progress was shocked and could not hide his emotion.

The announcement was made shortly after Progress and Zadok performed a song with D’Banj, one of the judges.

The winner of Nigerian Idol 6, Kingdom, was also on stage to thrill the audience as well as Pheelz, who performed his hit song, Finesse.

The winner of this edition won prizes worth N100 million.

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We Need Entrepreneur-friendly Policies—Daniel Adewoye Olamide

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Daniel Adewoye Olamide

Former Mr Universe 2018, Daniel Adewoye Olamide, is a filmmaker, creative designer, content developer, journalist and among other entertainment engagements, He is also the global head of media for Gtext Homes, a leading real estate firm in Nigeria. In this interview, he talks about his career in the industry. Among other issues, he talks of his plans for the future, and more.

How did you start filmmaking as a journalist?

Well, I didn’t start filmmaking or journalism at first, although I had started building the skills. I joined the creative industry as a model and won Mr Universe Africa and then transitioned full time into filmmaking. It started with always wanting to put ideas and scenarios in my head into motion, bringing it to life and being behind the camera.

What inspired you to go into filmmaking and how did it all begin?

It’s only in the film industry you can be God and create your scenarios and outcomes. Basically, being the author and finisher of the actor’s fate. I like to create my worlds and scenarios that likely won’t be something you see in real life at the same it lets you create awareness about important matters and topics.

Did you actually learn it somewhere or how did you start?

No, I didn’t intern under anyone as a filmmaker. I am a self-taught filmmaker. Most of my learning resources were from the internet and also I did one or two courses in and outside Nigeria to back up my knowledge and craft.

What is your goal in the film industry?

I want a name crested in the hall of fame, but above all, I want to make an impact with my work, influence and change lives positively.

Apart from being the global head of media at GText Homes yourself, you are also a filmmaker, content developer and graphic designer. How do you handle all of these at the same time?

It all flows together, that’s what makes you a manager or supervisor; having an idea of all these things and how they blend into one and work together.

You have continued to remain relevant in GText Homes. What does it take to accomplish that?

Honestly, value plus dedication equals relevancy; so, I think that answers it.

On what platform are you selling yourself?

By selling, I guess you mean promoting. My Instagram page has some of my works. My website is coming up soon with all of my work on there.

Daniel Adewoye Olamide filmmaker

What are your hobbies?

I don’t have many friends that really hang around me physically. Most of them are creatives and content creators so they are mostly working as well. I watch movies a lot, then music too. I have a very nice set of playlists for different moods. So, yeah, I don’t do much, to be honest.

Since you started filmmaking, will you say it has given you some financial independence?

Well yes, it has, but in Nigeria, you don’t get rewarded as much as the skill you have.

Like in a month when the business is good, how much do you make?

It depends on your clientele really and the kind of project you do, it’s relative.

Where do you hope to take this filmmaking venture to?

The plan is to pass on what I know to the coming creatives. I didn’t have it all starting up. I didn’t have access to major information starting up. So, I intend to make this easier for those starting up and trying to self learn filmmaking.

What is your plan for growing the brand?

Well, I hope to work with more major brands and create my own piece of ideas and thoughts.

Like how many people do you have working for you?

I have quite a team of skilled photographers and cinematographers, they are partners really because we mostly collaborate to create. There’s no boss or employee in the creative field, in my opinion.

How many films have you produced so far?

Technically none, but I have been part of major TV shows and commercials. One of them is The Investment chat in a Rolls Royce, I worked on it as a co-producer and senior editor, and others are coming out soon as well.

What project are you working on currently?

I have a story or should I say a short film I wrote I’m working on with my team. The production is set to start soon, ceteris paribus.

What would you describe as the best aspect of your career?

The fact that you get to put your own imaginations into writing then onto the screen and people can see and feel your work, sometimes even have a different view and spinoff from what you created.

Would you say you have attained some level of perfection now?

To be honest, I am better than I was yesterday. With filmmaking, you can’t always be perfect but you can be the best at what you do, there are new things to learn every day.

Daniel Adewoye Olamide Mr Universe 2018

Who is/are your role model(s) in the film and entertainment industry and why?

I don’t have a role model, I have pacesetters; people that set the pace in terms of their creative prowess and thinking capability, and delivery as well.

What brands have you worked on?

I’ve worked with BBnaija Housemates, Koko by Khloe, Whitemoney, Tega, Jackie B just to mention a few. I handled some of their brand ambassadorial commercials. I did Kennyblaq’s UK tour video campaign, Destalker UK tour as well as Seyi Law’s recently I got in a fight in UK Tour, Telesoftas, a Lithuania tech company. I have done something for Cantu as well and Dunnie.

I’ve also worked with Kanayo O Kanayo, Korede Bello, Cosmas Maduka, MD of Coscharis, Aare Dele Momodu, Dr Stephen Akintayo, and Taylor Live magazines, Sanni Danja and Mr Macaroni. My work has really put me in places with a lot of known personalities. These are the few I can remember really.

You directed the ‘Sacrifice’ commercial that trended, what was it like working with Kanayo O Kanayo?

Well, it was one of those projects that really tested how far I can stretch and deliver under a short timeline. It wasn’t till after the shoot I realised what I had just done. I just directed a commercial and it was a veteran I had on set. He was sceptical when he found out I was the director, but in the end, he wasn’t disappointed, I guess.

You have been a filmmaker for years now. How far would you say Nigeria’s film industry has gone?  

There has been a major improvement even though Nollywood has shitty movies and films that will make you puke, lol but the most important is we are getting better and we have directors that are changing the narrative.

To what extent do you think the film industry has contributed to the economic growth of Nigeria?

I would say it has contributed more to Nigeria socially than it has financially, considering piracy is still at large in Nigeria.

Daniel Adewoye Olamide Director

Do you agree that the government doesn’t patronize the film industry?

Well, they don’t because the people in government don’t care about your film, it takes creative and innovative leaders to know the importance of the film industry, our leaders are not informed even the minister of information is not as well, according to news.

What do you think the government can do to promote entrepreneurship?

They need to give the space and create more schemes that allow entrepreneurs to have access to platforms that support what they do and collaborate with industries outside Nigeria that can help entrepreneurs and their establishment and at the same time make entrepreneur-friendly policies, so you don’t get frustrated as well.

What is your advice to upcoming filmmakers as well as those with acting potential or intentions?

Don’t be about the money first, be about how much knowledge you can acquire. Filmmaking is a straightforward craft, you bill what you can deliver because you can’t cut corners; it will always show in your delivery. If you’re an actor as well, you need to work on your delivery and be better at it, especially with the expression of emotions. You also have to be versatile. The internet has made it easy to be detectable, you just have to be smart and don’t be desperate.

In simpler words, acquire knowledge, build relationships and don’t pursue money

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