According to a recent PricewaterhouseCoopers (PwC) report, Nigeria’s entertainment and media industry is expected to grow from $4 billion USD in 2014 to $8.1 billion in 2019, at a compound annual growth rate (CAGR) of 15.1%.
While noting that the Nigerian market is heavily driven by consumer spend, the report noted that Internet access will be the main contributor to market expansion with revenues accounting for a remarkable 82% of the growth through to 2019.
“Excluding Internet access, television, filmed entertainment and video games are the areas where Nigerian consumers are expected to spend the most over the next five years,” reports PwC.
Here is a breakdown of the country’s biggest media entertainment segments, bench-marked with global reports, according to PwC.
Internet access is proving to be a major revenue source globally. According to the report, Internet access and other media found online is projected to draw over $686.2 billion by 2019, up from $449.5 billion in 2014. In Nigeria, Internet access revenue is expected to climb from $2.1 billion in 2014 to $5.6 billion by 2019 — dwarfing all other consumer spend entertainment and media categories — and making it the largest contributor to Nigeria’s total entertainment and media revenues, at a compound annual growth rate (CAGR) of 21.4% in 2019.
Global pay-TV subscriptions are set to reach a market value of $243.8 billion by 2019. In Nigeria, the market is said to be benefiting from a strong economy, with annual real GDP growth averaging over 6% over the last five years, leading to demand from both consumers and advertisers. Thus, the combined revenue from TV subscriptions, advertising, and licence fees is projected to reach $1.1 billion by 2019. It is estimated that one in four households will have a TV subscription in Nigeria by 2019 and although cable and IPTV services are currently limited, the satellite sector is still growing.
While Hollywood and other global film markets are expected to hit $104.6 billion by 2019, consumer spend on filmed entertainment in Nigeria is expected to steadily increase from $183 million in 2014 to $295 million, at a compound annual growth rate (CAGR) of 10.1% by the end of the forecast period. However, revenues from the black market were not included in the report which, if added, the actual consumer spend would be much higher.
Although the global video game market is expected to reach $93.2 billion by 2019, Nigeria’s video game market is understood to be quite small. According to the PwC report, revenue from video games will reach $177 million by 2019, up from $91 million in 2014. However, consumer spend on video games is set to see the sharpest rise in forecast CAGRs at 14.3% by the end of 2019.
The global music industry is, indeed, going through a rough time, as revenue from recorded music is expected to continue its decline towards 2019. As a result, the overall music industry will see CAGR of 0.8% through to 2019, with revenues totaling around $47 billion. In Nigeria, it is expected to grow from $51 million in 2014 to $88 million in 2019, with a sharp rise in forecast CAGRs at 11.4% by year-end 2019. However, just as with films, music revenues from the black market were not included in the report which, if added, will significantly increase consumer spend in this entertainment sector.