COVID-19: Africa's entertainment & media industry show signs of recovery

Africa's entertainment and media industry is on a path to recovery following the significant disruptions caused by the COVID-19 pandemic. PwC's latest Africa Entertainment and Media Outlook report for 2022 to 2026 highlights the strong comeback of key markets such as South Africa, Kenya, and Nigeria, even though revenues are still below pre-pandemic levels. Charles Stuart, PwC South Africa's Entertainment and Media Partner, discussed the industry's prospects with CNBC Africa and provided insights into the sector's growth trajectory. The report foresees continued expansion in South Africa, with the market size projected to increase by 6.3% annually, reaching 221 billion rand by 2026. Nigeria is expected to see even faster growth at 18.6%, driven by internet access, while Kenya is set to add a billion dollars to its market size at a growth rate of 7.7% over the forecast period. The growth in these markets is primarily attributed to the increasing focus on internet-driven content consumption and advertising. With a surge in mobile internet penetration and shifting consumer habits towards online entertainment, the internet access and advertising segments are at the forefront of driving revenue growth. Digital content consumption, coupled with targeted advertising strategies, has become pivotal in attracting audiences, particularly the youth demographic. While internet advertising demonstrates robust growth, traditional media segments are also sustaining their relevance, indicating a hybrid model in the industry. Additionally, the rebound of industries like live music and cinema signifies a resurgence in consumer engagement, with audiences eager to return to live events and entertainment venues post-pandemic. Beyond the key markets of South Africa, Nigeria, and Kenya, emerging economies like Rwanda are poised to capitalize on the mobile and digital behavioral shifts witnessed in the entertainment and media landscape. Countries with untapped internet penetration potential and user-friendly content access platforms are likely to experience growth opportunities in the evolving industry landscape. Enhancing user experiences and facilitating seamless payment options for content consumption will be crucial for countries looking to leverage the digital transformation wave in the entertainment sector. As the industry adapts to the 'new normal' post-COVID-19, a mobile-first approach, digital innovation, and diversified revenue streams are shaping the future trajectory of Africa's entertainment and media industry.