The Internet, video games, television, and filmed entertainment segments of South Africa’s entertainment and media industry are projected to continue to grow over the next few years. However, the publishing industry has to work hard to make headway.
This is according to the ‘Entertainment and Media Outlook 2016-2020 Report’ for South Africa, Nigeria and Kenya released by professional services consultancy PwC last week.
Despite a slower growth projection for the industry, the study forecasts that South Africa’s entertainment and media industry will grow from R125,7-billion in 2015 to R173,3-billion in 2020, a compound annual growth rate of 6,6%.
“In spite of widespread disruption in the entertainment and media industry, as well as intense competition for consumer attention, there are growth opportunities aplenty for companies to capitalise from in the new media landscape,” says Vicki Myburgh, Entertainment & Media Industry Leader for PwC Southern Africa.
Digital spend is expected to drive the overall growth. South Africa’s Internet access market will rise from R39,4-billion in 2015 to R68,5-billion in 2020, as broadband – both fixed and mobile – becomes an essential utility. “Although the forecast [growth rate] of 11,7% is lower than previously predicted, this still makes Internet access by far the largest contributor to total entertainment and media spend,” adds Myburgh.
The study analyses a total of 11 entertainment and media segments: the Internet, television, filmed entertainment, video games, business-to-business publishing, recorded music, newspaper publishing, recorded music, magazine publishing, book publishing, out-of-home-advertising and radio.
Aside from the Internet, the report predicts that growth will also be seen in the video game market, filmed entertainment and television segments. “As Internet revenue continue to rise, the forecast for newspaper and magazine circulation is on the decline as consumers migrate from print copies to free online alternatives – and aren’t as yet moving to paid digital formats in great numbers,” says Myburgh.