A review of Africa's entertainment & media industry

Africa's entertainment and media industry is experiencing significant growth and transformation, driven by various factors such as the rise of digital platforms, changing consumer behavior, and the increasing demand for local content. South Africa, Nigeria, and Kenya are at the forefront of this evolution, each contributing uniquely to the industry's landscape. With South Africa boasting the largest TV market in Africa, Nigeria emerging as one of the fastest-growing markets, and Kenya's entertainment and media industry worth $2.2 billion in 2015, the region is witnessing a dynamic shift in its entertainment ecosystem. Vicki Myburgh, the PwC Entertainment & Media Industry Leader for PwC Southern Africa, provided valuable insights into the current state and future outlook of the industry in a recent interview with CNBC Africa. One of the key themes that emerged from the discussion was the pivotal role of digital technology in reshaping the industry. The proliferation of internet access, over-the-top viewing, and on-demand video platforms has disrupted traditional modes of content consumption, presenting both challenges and opportunities for businesses in the sector. While television subscription and cable services have historically dominated the market, the advent of digital media has opened up new avenues for growth and innovation. Myburgh highlighted the importance of internet access as a major driver of industry growth, with Nigeria leading the way as the fastest-growing market for internet services. This emphasis on digital platforms underscores the evolving preferences of consumers, particularly the younger demographic, who are driving the sector's expansion. With over 60% of South Africa's population and over 80% of Nigeria and Kenya's population under the age of 35, there is a strong appetite for digital content and alternative modes of entertainment consumption. This demographic shift presents a lucrative opportunity for investors and businesses to capitalize on the growing demand for local and digital content. However, the industry faces challenges in monetizing digital media and combating piracy, which continues to undermine revenues and royalties for content creators. Despite these obstacles, Myburgh remains optimistic about the industry's prospects, citing the potential for local entertainers to break into the global market and create value through innovative content offerings. She emphasized the importance of nurturing local talent and investing in high-quality productions to attract a wider audience and generate sustainable revenues. Looking ahead, Myburgh highlighted the need for regulatory reforms and industry collaboration to address key issues such as royalty structures, content bundling, and piracy. By fostering a supportive ecosystem for artists and content creators, the African entertainment and media industry can unlock its full potential and establish itself as a competitive player on the global stage.