PwC: Digital adoption, innovation seal Africa’s position in future of global E&M industry

Africa's Entertainment and Media industry is experiencing significant growth and innovation, according to a report by PwC. The Africa Entertainment and Media Outlook 2024 – 2028 highlights the continent's promising E&M landscape, with key markets such as South Africa, Nigeria, and Kenya poised to surpass global averages. Udochi Muogilim, Partner at PwC, recently joined CNBC Africa to discuss the report's findings and shed light on the future outlook for the industry. The report emphasizes the resilience and reinvention of the African E&M market, particularly focusing on South Africa, Kenya, and Nigeria. These countries have demonstrated growth rates above the global average, driven by factors such as rapid digital adoption and innovation. Nigeria, with its vast population of over 200 million, has shown remarkable digital savviness among its youthful demographics. The country's shift towards digital content consumption is fueling internet advertising, a key revenue driver in the market. In a unique trend, Nigeria's retail search is dominating the paid search revenue, with e-commerce players like Jumia and Konga playing a significant role in driving this growth. The report highlights that about 20% of Nigeria's paid search revenue comes from retail search, showcasing the country's distinctive market dynamics. While video content remains a leading segment in the broader African market, the report also observes a burgeoning interest in live music and events. Recent successful events, such as those held on the 30th of December, have seen a surge in ticket sales, surpassing pre-COVID levels. Collaborations between local and foreign artists are enhancing the sector's offerings, with internet advertising playing a pivotal role in reaching wider audiences. Looking ahead, sustaining the industry's recovery and growth will depend on strategic collaborations, increased advertising, and leveraging digital platforms for wider reach. The removal of COVID restrictions is expected to boost consumer interactions and drive further growth in live events and performances. Despite the positive outlook, the industry faces risks that need to be addressed for long-term sustainability. The high cost of investment in the pay-TV space and infrastructure challenges pose potential obstacles. However, opportunities in 4G adoption, increased mobile data usage, and the integration of artificial intelligence offer promising prospects. AI, rather than being a threat to jobs, is seen as a tool for providing valuable insights, streamlining production processes, and understanding consumer preferences. In conclusion, Africa's E&M industry is on a trajectory of growth and transformation, with digital adoption, innovation, and strategic partnerships shaping its future. As the continent continues to position itself on the global stage, there is a need to navigate risks effectively while seizing the vast opportunities that lie ahead.