Monday | 11 Dec 2017
Welcome to Digital Opportunity, the ‘all about ICT for Development’ channel, brought to you by OneWorld South Asia that informs on digital inclusion, showcases best practices in the sector and provides space for sharing and collaboration amongst ICT for D practitioners.
About Digital Opportunity
OneWorld websites and resources
Appropriate Technology Choice

Increased Internet access to generate more consumer spend in Africa: PwC report


19 September 2014

Bookmark and Share

Technology is increasingly being driven by consumers’ needs and expectations, said Vicki Myburgh, Entertainment & Media Industries Leader for PwC South Africa.

Johannesburg, South-Africa

: Increased Internet access will generate more consumer spend than any other media product or service in the next five years in the South African entertainment and media industry, according to a report issued by PwC.

 

South Africa’s entertainment and media market is expected to grow by 10.2% compounded annually (CAGR) from 2014 – 2018 to a value of R190.4bn. By far the largest segment will be the Internet. Combined revenues from Internet access and Internet advertising will account for an estimated R71.6bn in 2018, accounting for 37.6% of total revenues, according to PwC’s South African Entertainment and Media Outlook: 2014-2018

 

Vicki Myburgh, Entertainment & Media Industries Leader for PwC South Africa, says: “Growth in the South African entertainment and media industry is largely being driven by the Internet and by consumers’ love of new technology, in particular mobile technology, such as smartphones and tablets, as well as applications powered by data analytics and cloud services. Technology is increasingly being driven by consumers’ needs and expectations.”

 

The fifth edition of PwC’s ‘South African Entertainment and Media Outlook’ presents annual historical data for 2009-2013 and provides annual forecasts for 2014-2018 in 12 entertainment and media segments.

 

The Outlook includes historical and forecast data on the Internet, television, filmed entertainment, radio, recorded music, consumer magazine publishing, newspaper publishing, consumer and educational book publishing, business-to-business publishing, out-of-home advertising, video games, and sports. It gives a detailed breakdown of these sectors.

 

The Outlook also includes detailed information for South Africa, Nigeria and Kenya in each of the 12 industry segments.

 

Aside from the Internet, The Outlook predicts that the fastest growth will be seen in video games and radio, which will enjoy growth rates at 9% and 8.2% respectively. “Video games has made the greatest transition to digital, largely due to the popularity of mobile gaming, but also because of the  increased potential for digital distribution of console games,” adds Myburgh. The study projects that 27% of console revenues are forecast to be digital in 2018.

 

The slowest growing segment in the E&M industry will be the music industry, according to the survey. Annual revenue is forecast to grow marginally by a CAGR of 0.5% to remain relatively flat at R2.18bn in 2018.

 

Television is the second-largest segment, with combined revenues from TV subscriptions and advertising projected to reach R39.6bn in 2018. The study shows that advertising accounted for 38% of revenue in the E&M industry in 2013, although this share is expected to fall to 33% in 2018, largely due to internet access increasing its market share significantly over the same period.

 

The strongest drivers of growth in the sports segment will come from sponsorships and media rights. South Africa will see total sports revenues of an estimated R20.5bn in 2018, up from R14.8bn, and rising at a CAGR of 6.7%.

 

End-user spending, consisting of spending by consumers and other end-users on products and services produced by the entertainment and media industry, will rise at 12% CAGR over the next five years from R72.8bn in 2013 to reach an estimated R128.1bn. Although there is a significant change in the way consumers spend their money, digital revenues in other segments remain relatively small. Nevertheless digital is on the rise both in terms of consumers and advertising revenues.

 

SOURCE: African Press Organization

 

 

 
Global Goals 2030
festival ECONOMIA trento
Helpi - your personal safety app
EVENTS & ANNOUNCEMENTS
» Online climate conference
Online,  November 5, 2012.
» Open Knowledge Festival 2012
Helsinki, Finland,  September 17,2012.
» ITU Green Standards Week
39, quai du Président Roosevelt 92130 Issy-les-Moulineaux, France,  September 17

Digital Opportunity channels and collaborative projects include:
Ek Duniya Anek Awaaz OneWorld Open Knowledge Network ItrainOnline TIKI the Penguin, Kids Channel
Digital Opportunity