The Entertainment and Media Industry in Kenya was worth US$2.1 billion in 2016, up 13.6% in 2015. This is according to a new PWC Entertainment and media outlook: 2017 – 2021 report released this week.
The report, titled ‘An African perspective’ released today’ also notes that the revenue is forecast to grow at an 8.5% CAGR over the next five years, hitting the US$3 billion mark in 2020, and totaling US$3.2 billion in 2021. It further says that Internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021.
Amid shifting consumer preferences, rapid advances in technology and ongoing disruption to business models, the report notes that the new strategic imperative for entertainment and media companies is to turn customers into fans – by innovating to create the most compelling, engaging, and intuitive user experiences.
Significant shifts are underway in how Africa’s entertainment and media companies compete and generate value, as the quality of the experience they deliver to consumers becomes their primary basis for strategic differentiation and revenue growth. To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.
To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capabilities to engage with consumers.
“Companies that wish to capture value amid shifting consumer preferences and business model disruptions must focus on an increasingly prominent source of competitive advantage: the user experience. They must harness technology and data to attract, retain and engage users–and convert them into devoted fans,” says Vicki Myburgh, Entertainment and Media Industry Leader for PwC Southern Africa. These imperatives assume a larger importance because, as we document in the Outlook, the entertainment and media industry is confronting several challenges to continued top-line growth.
The report adds that digital spend will continue to drive the overall growth. Nearly 40% of total spend will be derived from Internet access in revenue.
Myburgh, however, notes that thriving in this new world of intense competition and continual disruption will be challenging. ‘’The opportunities are, however, immense. Across the industry, the resulting quest to create the most compelling, engaging and intuitive user experiences is now the primary objective for growth and investment strategies, with technology and data at the center.’’
“Accordingly, companies will need to develop strategies to engage, grow and monetize their most valuable customers: their fans,” he adds.
The Outlook is a comprehensive source of analysis and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana, and Tanzania) and 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business publishing, music, out-of-home, and radio.
We will be sharing a breakdown of this report in our next article on the different segments covered by the report.