Nigeria: Media and Entertainment to hit $15bn by 2025

By Temitayo Lawal
Posted on Friday, 1 October 2021 09:11, updated on Thursday, 14 October 2021 13:58

2018 BET Awards - Show
Davido accepts the best international act award at the BET Awards at the Microsoft Theater on Sunday, June 24, 2018, in Los Angeles. (Photo by Richard Shotwell/Invision/AP)

Jason Njoku and Mo Abudu have blazed a trail for Netflix and Spotify to follow. If Nigeria's media and entertainment industry continues on its growth path, its revenue could nearly double between now and 2025 to near $15bn.

A report from consultants at PwC forecasts that the fast-growing industry will earn $14.8bn in 2025, up from its current revenue of $7.7bn, riding on an 85% growth of its internet access segment.

As Covid-19 cases steadily rose in Nigeria and the government enforced a nationwide lockdown, the economy shrank by 1.8%, plunging the country into its second recession in five years. The music industry was not spared. Nightclubs and bars were closed, while festivals and music concerts got cancelled; but the internet came to the rescue.

For example, Nigerian musical superstar Wizkid banked on internet firepower to release his much anticipated Made in Lagos album, which has gone on to become a smash hit. It has spent over 40 weeks on the Billboard World Albums Chart, peaking at number one globally.

Davido, another blockbuster Nigerian musician, has set his sights on breaking through in the US, but also partners with South African artists to bring the Afrobeats sound to new audiences — and  markets.

Internet lends a hand

The PwC report explains how the internet has facilitated the shift in how creatives and fans engage with the arts and products. It says “changes in consumer behaviour have driven powerful shifts in entertainment and media business models. Foremost among these shifts is the way the streaming boom of 2020 has set the industry on a new growth trajectory.”

As a testament to this, Spotify, a global music streaming giant, joined many others in the Nigeria music streaming business earlier this year. Internet-enabled platforms, such as Netflix, are making ambitious strides – that were only a dream few years ago – possible.

Those internet-powered success stories are characteristic of the media industry in the country. Internet access already accounts for 78% of the industry’s revenue, which is projected to steadily grow to 85%, or $12.5bn in 2025, from $6.02bn this year.

“In fact, we may be moving into a new phase of streaming growth – one that is more measured, more focused on improving the experience of customers, and more intent on retaining and creating value from immense subscriber bases that have materialised,” the PwC report says.

Media space continues to rise

In the PwC report, the media and entertainment industry covers 13 business segments. The traditional TV and home video subsector holds the industry’s second-largest market share. Although the subsector’s revenue is expected to rise from $692m this year to $865m in 2025, its market share is projected to decline from 9% to 6% due to competition from other subsectors. It is little wonder that players in this space are also leveraging the internet wave.

In the media space, Nigeria’s 13-time best television station Channels TV for instance, has also looked towards the internet to retain its leading status. Its website was ranked 79th in Nigeria in August, and it has a combined viewership of almost 10 million on Twitter, Facebook, Instagram and YouTube, with well-structured multi-platform streaming services.

PwC predicts that total industry revenue will rise steadily across the years that the PwC outlook covers. The report expects the revenue to rise from $7.7bn in 2021 to $9bn in 2022, $10.7bn in 2023, $12.6bn in 2024 and then $14.8bn in 2025. This steady growth will be largely fuelled by internet access, which is in turn powered by the country’s broadband infrastructure and mobile connectivity.

That is why Agbaje Kehinde, a Lagos-based technology expert, believes that more growth can be achieved if the country makes more inroads into national broadband penetration. He tells The Africa Report that “a lot of work needs to be done on internet penetration, quality and affordability if we truly want to optimise the growth and compete with the global market.”

A recent report by Jobberman, one of Nigeria’s most prominent career platforms, stated that Nigeria’s creative industries employ 4.2 million people and are projected to employ 2.7 million more by 2025.

It further predicts that the media and entertainment sectors, which employ 1.5 million Nigerians, could create jobs for almost one million more people by 2025. Watch this space and an internet-connected device near you.

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