Print the only media not expected to grow over next five years, PwC reports
African entertainment and media markets show resilience in light of macroeconomic instability
29 January 2025 - 05:00
by Mudiwa Gavaza
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SA’s print media sector is expected to continue its decline over the next five years, PwC said in a new report.
According to the consulting firm’s Africa Entertainment and Media Outlook 2024—2028 report, entertainment and media (E&M) markets across SA, Nigeria and Kenya “are showing resilience against a backdrop of global macroeconomic instability,” with all three leading African markets seeing revenue growth ahead of the global average at 3.9% compound annual growth rate (CAGR) through 2028.
SA has the most well-established E&M market, compared to Nigeria and Kenya.
As such, PwC expects the country will see the slowest growth over the forecast period, at an overall projected CAGR of 4.2%. “Growth is expected across most segments other than print media, with over-the-top (OTT) streaming services and internet advertising expected to see some of the highest growth rates.”
The firm says growth will be backed by stable internet connectivity and increased 5G adoption. Video games and esports remain a segment to watch, promising strong future growth.
Alinah Motaung, PwC Africa’s entertainment and media leader, said E&M revenue in SA is projected to increase from R295.3bn (about $16.1bn) to R363.2bn in the period.
SA’s legacy media houses, particularly those in the business of print, have taken huge strain in recent years.
Estimates by the Wits journalism department show internet giants, including Facebook and Google, have taken as much as 60% of local advertising revenue over the past decade.
In recent years, a number of media houses have announced retrenchments as they streamline their operations to cope with the loss of advertising revenue, particularly for legacy businesses.
This has resulted in media professionals losing their jobs, as well as companies such as Associated Media Publishing, which ran titles such as Cosmopolitan, shutting their doors.
Earlier in 2024,Naspers-owned Media24 announced a strategic shift that put 400 jobs at risk as it sought to close the print editions of five newspapers, transitioning three of them into digital-only brands.
In September, Daily Maverick became the latest casualty when it announced it would begin a cost-reduction exercise, aiming to cut about 15% of operating costs.
In the same month, Independent Media — owners of publications such as The Star, Cape Times, Cape Argus and Isolezwe — announced retrenchments, citing substantially the same reasons as Daily Maverick about an unsustainable media industry.
Much of this has been attributed to the shift in the consumption of digital news sources as a result of smartphones and more affordable access to the internet.
PwC’s data shows those same shifts have helped other segments to do well, in SA and abroad.
According to the report, Nigeria has cemented itself as one of the fastest-growing E&M markets globally, with an 8.6% CAGR.
The fastest-growing E&M segments through 2028 in the West African country will include internet advertising, video games and esports, OTT and music, radio and podcasts. Internet advertising revenue is expected to more than double between 2023 and 2028.
In East Africa, Kenya’s E&M industry is expected to grow at a 5.2% CAGR for the forecast period, despite being the smallest of the three markets in Africa.
Internet advertising and OTT are expected to lead the way, contributing to the fastest-growing internet advertising market in the world at a CAGR of 17.4% through 2028.
Motaung said Nigeria’s market value is projected to grow from $9bn in 2023 to $13.6bn in 2028, while Kenya’s sector revenue is projected to reach $4.8bn at the end of the forecast period, up from $3.8bn in 2023.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Print the only media not expected to grow over next five years, PwC reports
African entertainment and media markets show resilience in light of macroeconomic instability
SA’s print media sector is expected to continue its decline over the next five years, PwC said in a new report.
According to the consulting firm’s Africa Entertainment and Media Outlook 2024—2028 report, entertainment and media (E&M) markets across SA, Nigeria and Kenya “are showing resilience against a backdrop of global macroeconomic instability,” with all three leading African markets seeing revenue growth ahead of the global average at 3.9% compound annual growth rate (CAGR) through 2028.
SA has the most well-established E&M market, compared to Nigeria and Kenya.
As such, PwC expects the country will see the slowest growth over the forecast period, at an overall projected CAGR of 4.2%. “Growth is expected across most segments other than print media, with over-the-top (OTT) streaming services and internet advertising expected to see some of the highest growth rates.”
The firm says growth will be backed by stable internet connectivity and increased 5G adoption. Video games and esports remain a segment to watch, promising strong future growth.
Alinah Motaung, PwC Africa’s entertainment and media leader, said E&M revenue in SA is projected to increase from R295.3bn (about $16.1bn) to R363.2bn in the period.
SA’s legacy media houses, particularly those in the business of print, have taken huge strain in recent years.
Estimates by the Wits journalism department show internet giants, including Facebook and Google, have taken as much as 60% of local advertising revenue over the past decade.
In recent years, a number of media houses have announced retrenchments as they streamline their operations to cope with the loss of advertising revenue, particularly for legacy businesses.
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This has resulted in media professionals losing their jobs, as well as companies such as Associated Media Publishing, which ran titles such as Cosmopolitan, shutting their doors.
Earlier in 2024, Naspers-owned Media24 announced a strategic shift that put 400 jobs at risk as it sought to close the print editions of five newspapers, transitioning three of them into digital-only brands.
In September, Daily Maverick became the latest casualty when it announced it would begin a cost-reduction exercise, aiming to cut about 15% of operating costs.
In the same month, Independent Media — owners of publications such as The Star, Cape Times, Cape Argus and Isolezwe — announced retrenchments, citing substantially the same reasons as Daily Maverick about an unsustainable media industry.
Much of this has been attributed to the shift in the consumption of digital news sources as a result of smartphones and more affordable access to the internet.
PwC’s data shows those same shifts have helped other segments to do well, in SA and abroad.
According to the report, Nigeria has cemented itself as one of the fastest-growing E&M markets globally, with an 8.6% CAGR.
The fastest-growing E&M segments through 2028 in the West African country will include internet advertising, video games and esports, OTT and music, radio and podcasts. Internet advertising revenue is expected to more than double between 2023 and 2028.
In East Africa, Kenya’s E&M industry is expected to grow at a 5.2% CAGR for the forecast period, despite being the smallest of the three markets in Africa.
Internet advertising and OTT are expected to lead the way, contributing to the fastest-growing internet advertising market in the world at a CAGR of 17.4% through 2028.
Motaung said Nigeria’s market value is projected to grow from $9bn in 2023 to $13.6bn in 2028, while Kenya’s sector revenue is projected to reach $4.8bn at the end of the forecast period, up from $3.8bn in 2023.
gavazam@businesslive.co.za
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