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SA is leading Africa's Entertainment & Media landscape - PwC report

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January 29, 2025

TLDR: Nosipho Radebe interviews Charles Stuart, a PwC SA Entertainment & Media Partner.

1Ask AI

In the recent Power 98.7 Podcast, Nosipho Radebe discusses insights from the PwC Africa Entertainment and Media Outlook 2024 report with Charles Stuart, PwC's SA Entertainment and Media Partner. This episode highlights South Africa's leadership in the entertainment and media sectors across Africa, focusing on key growth factors as the continent navigates global economic challenges.

Key Insights from the Podcast

The podcast delves into the main findings of PwC’s report which outlines the following:

  • Market Growth: South Africa, alongside Nigeria and Kenya, is projected to experience significant revenue growth, notably outpacing global averages.
  • Growth Rates:
    • South Africa: 4.0%
    • Nigeria: 8.6% (fastest growth in Africa)
    • Kenya: 5.2%

Factors Driving Growth

Charles Stewart identifies several critical factors contributing to the entertainment and media growth in these regions:

  • Digital Space Expansion: A significant push is seen in digital consumption, encompassing:
    • Over-The-Top (OTT) platforms
    • Music streaming services
    • Internet advertising growth
  • Resurgence in Live Events: Following pandemic-related setbacks, live music and cinema sectors are rebounding.

Regional Differences in Growth

While all three regions are experiencing positive growth, South Africa exhibits a unique profile:

  • Larger Video Game Market: South Africa's video game sector is notably more developed than in Nigeria and Kenya, with expected growth of around R3 billion in the gaming industry over the forecast period.
  • Internet Advertising Trends: There is consistent growth in internet advertising across all markets, driven by increased digital content consumption.

The Role of Mobile Connectivity

Mobile-first connectivity emerges as a crucial driver in shaping video content consumption across Africa:

  • Widespread Use: There is a noticeable increase in the usage of mobile devices across demographics, enhancing access to digital entertainment.
  • Social Gaming: Casual and social games are becoming the most played categories, attracting substantial advertising dollars.

Emerging Internet Advertising Trends

The podcast discusses significant trends impacting internet advertising, especially the influence of AI:

  • Retail Search and Displays: The shift towards retail search and display marketing is on the rise, particularly due to changes in consumer behavior brought about by the pandemic.
  • AI's Impact: Although AI presents challenges to traditional paid search methods, it promises advanced targeting capabilities for advertisers.

International Perspectives on Africa's Entertainment Potential

Charles highlights the interest international players have in Africa's Entertainment and Media (E&M) sector:

  • High Growth Markets: Companies are increasingly drawn to Africa due to its faster growth in media consumption compared to other global markets.
  • Cultural Representation: The importance of local content cannot be overstated. Successful global firms recognize the need to produce culturally resonant content for local audiences to maximize their market impact.

Localized Content as a Strategy

The discussion emphasizes:

  • Localization Benefits: Content must reflect the cultural nuances and storytelling traditions of Africa to attract diverse audiences and ensure success in the entertainment sector.
  • Market Adaptation: Companies entering the African market need to adapt their strategies to align with local preferences and norms, drawing parallels to successful models in regions like Bollywood.

Conclusion

The conversation with Charles Stewart underscores South Africa’s significant role in shaping the future of Africa’s entertainment and media sectors. With emerging trends in digital consumption, mobile connectivity, and localized content strategies, businesses can harness the rapid growth opportunities available in this vibrant market. As the continent continues to lead ahead of global growth rates, stakeholders are encouraged to stay attuned to changes and embrace innovative strategies to enhance audience engagement and expand market reach.

This episode serves as a valuable resource for entrepreneurs, marketers, and media professionals looking to understand the dynamics of Africa’s entertainment landscape. Tune in to the full podcast for more insights on these exciting developments.

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