PwC forecasts Nigeria’s entertainment and media sector to grow at an annual rate of 8.6% from 2023 to 2028, driven by digital adoption and government broadband initiatives. The report outlines the ten fastest-growing industry segments, emphasizing substantial growth in internet advertising, OTT streaming, and gaming, all buoyed by a youthful population eager for new technologies.
Nigeria’s entertainment and media (E&M) sector is poised for significant growth, driven by digital adoption and a youthful population. PwC’s report forecasts a compound annual growth rate (CAGR) of 8.6% for the industry from 2023 to 2028, surpassing growth rates in other African nations like South Africa and Kenya. Contributing factors include increased internet access and robust government initiatives aimed at improving broadband coverage.
Udochi Muogilim, PwC Nigeria’s Leader for Technology, Media, and Telecommunications, highlights that innovation plays a crucial role in this growth. “With a youthful population eager to embrace innovation, Nigeria’s entertainment and media industry can harness the power of genAI to capitalize on this disruptive force, unlocking new opportunities for growth and development,” she stated.
The report lists the top 10 fastest-growing segments within Nigeria’s E&M industry based on CAGR.
10. Newspapers, Consumer Magazines, and Books: The print sector is set to see modest growth, with revenues increasing to $127 million by 2028, reflecting a shift towards digital subscriptions and niche content, even as conventional print declines.
9. Out-of-Home Advertising: Despite the dominance of digital channels, out-of-home advertising is projected to grow at 1.7% annually, reaching $95 million by 2028 due to urbanization and demand for visible advertising.
8. Business-to-Business Advertising: Growing steadily at 2.5% annually, this segment is expected to reach $10 million by 2028, benefiting from corporate marketing investments and professional networking.
7. Cinema: Driven by Nollywood’s influence, the cinema sector will grow to $10 million by 2028, with a 4.8% annual increase fueled by local film production and expanding theatres.
6. Traditional Television: While streaming services rise, traditional TV will grow to $995 million by 2028, an 8.1% annual growth rate, supported by digital transformation and engaging local content.
5. Mobile and Fixed Internet Services: This sector is projected to expand from $7.2 billion in 2023 to $10.7 billion by 2028, driven by broadband investments and increased internet user accessibility.
4. Music, Radio, and Podcasts: With Afrobeats gaining global popularity, revenue is expected to soar to $200 million by 2028, reflecting an annual growth rate of 10% driven by digital audio content consumption.
3. Over-the-Top (OTT) Streaming Services: The OTT market anticipates growth from $65 million in 2023 to $107 million by 2028, with a 10.5% annual increase as on-demand content usage rises.
2. Video Games and Esports: Revenues are expected to climb from $192 million to $322 million between 2023 and 2028, a remarkable annual growth of 10.9%, fueled by smartphone adoption and internet access.
1. Internet Advertising: Leading the growth at 15.4%, internet advertising is projected to exceed $1.06 billion by 2028, driven by the expansion of social media and e-commerce activities.
Stakeholders in Nigeria’s entertainment and media sector have abundant opportunities to innovate and harness emerging trends for sustained growth.
The growth of Nigeria’s entertainment and media sector is significantly influenced by digital technology adoption among the country’s large youth demographic. Firms and companies are beginning to recognize the potential of digital platforms and innovation to drive their growth strategies. The Nigerian government’s initiatives for expanding broadband access play a pivotal role in enabling this digital transformation, allowing various segments within the entertainment and media industry to thrive.
Nigeria’s entertainment and media industry is expected to grow substantially, with digital spheres such as OTT streaming, internet advertising, and music leading the charge. As companies adapt and innovate, they will not only contribute to the sector’s expansion but also redefine the consumer experience. The combination of a youthful audience and improving internet infrastructure positions Nigeria as a key player in the entertainment landscape over the coming years.
Original Source: nairametrics.com
