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PwC projects Nigeria’s entertainment and media industry revenue to grow by 93% in four years

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PwC projects 2% contraction in Nigerian economy in 2020

One of world’s leading consulting firms, PricewaterhouseCoopers (PwC), has projected 93 percent rise in the Nigerian Entertainment and Media (E&M) industry’s revenue in the next four years.

In its latest industry report obtained by Ripples Nigeria on Friday, PwC predicted that the E&M industry’s revenue would rise from $7.68 billion in 2021 to $14.82 billion in 2025.

The report said a majority of the expected revenue would be generated from internet access due to growing demand for streaming services.

It read: “The total revenue that will be generated by all the players in Nigeria’s E & M industry is expected to rise from $7.68 billion in 2021 to $9.03 billion in 2022, to $10.66 billion in 2023, and will increase further to $12.56 billion in 2024 before settling at $14.82 billion by 2025, culminating to an average growth rate of 18 percent during the period.

“Internet access based services such as Subscription Video-On-Demand (SVOD), Over-The-Top (OTT) and Transactional Video On Demand (TVOD) are projected to have robust growth from now through 2025.”

The PwC predicted big growth in the coming years in 13 business segments in the E&M industry.

These are – business to business, consumer books, traditional TV and home video, OTT video, internet access, as well as newspaper and consumer magazine.

Others are – out-of-home advertising, video games and esports, VR, TV advertising, cinema, internet advertising, and music, radio, and podcast.

The firm said the internet access market share would increase from 78 percent in 2021 to 85 percent in 2025.

READ ALSO: PwC predicts Nigeria, other African oil-producing countries will lose $1tn oil revenue in 20 years

“Internet access’ revenue in the E & M industry in Nigeria will rise from $6.02 billion in 2021 to $12.5 billion by 2025,” it added.

However, the growth from internet access will also affect traditional TV and the home video market segment, the second biggest market in Nigeria’s E & M industry.

PwC stated: “Its market share is projected to decline from 9 percent in 2021 to 6 percent in 2025, corresponding to from $692 million in 2021 to $865 million in 2025.”

Other segments whose revenues are expected to drop include newspaper and consumer magazine, out-of-home advertising, and TV advertising.

PwC projected a 1 percent drop in revenue for the aforementioned segments in four years time with their earnings standing at $173 million, $158 million, and $179 million respectively in 2025.

But cinema segment’s revenue is expected to rise from $7 million in 2021 to $12 million by 2025.

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