Internet access revenue dominates Nigeria’s entertainment & media earnings- experts

According to a newly released report by PricewaterhouseCoopers (PwC) consulting firm on Entertainment and Media (E&M) companies in Africa, Nigeria, which was discovered to be one of the fastest growing countries in the evaluation, has internet access revenue as its major source of growth in this area, especially mobile internet access revenue.

The report, titled, Entertainment and media outlook: 2017 – 2021: An African perspective, is a comprehensive source of analyses featuring five-year forecasts of consumer and advertising spending across five countries, namely: South Africa, Nigeria, Kenya, Ghana and Tanzania.

It also focuses on 14 segments including, 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 found that In terms of total E&M revenue, Nigeria stood as one of the fastest-growing countries. It however cautioned the takeaway from the data, noting that the growth was lopsidedly fueled.

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It revealed that a huge proportion of the growth came from Internet access revenue alone–specifically mobile Internet access revenue.

In terms of specific figures, the Outlook showed that of the US$2.8 billion that the Nigerian market will add between 2016 and 2021, all but US$452 million will come from Internet access revenue, adding that the combined elements of TV and video will contribute nearly US$200 million in revenue growth to 2021.

Vicki Myburgh, Entertainment and Media Industry Leader for PwC Southern Africa, noted that technology-enabled user experience must be the central focus of companies’ competitive strategy across Africa in order to expand growth on a sustainable basis on the evidence of content consumption trends.

He said, “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”.

 

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