Internet access spend contributed to the growth in South Africa’s entertainment and media industry.
During 2015 and 2016 the entertainment and media industry grew by 10.7%‚ owing to internet access spend.
According to PricewaterhouseCoopers Entertainment and media outlook for 2017 – 2021 — which provides an in-depth analysis of the trends shaping the entertainment and media industry in South Africa‚ Nigeria‚ Kenya‚ Ghana and Tanzania — South Africa’s entertainment and media industry forecasts the sector’s total revenue to reach R177.9-billion by 2021‚ up from R132.7bn in 2016‚ with internet access accounting for R27-billion or 60% of the increase.
The mobile internet penetration of 52.3% in 2016 is set to increase to 77.8% in 2021.
“Over the next five years there will be a hundred-million mobile internet subscribers in South Africa‚ Nigeria‚ Kenya‚ Ghana and Tanzania‚” said Vicky Myburgh‚ PricewaterhouseCoopers SA entertainment and media leader.
Digital revenue is also the source of the large majority of growth‚ says the report.
Internet advertising in South Africa continues to grow rapidly‚ with the total on-line advertising spend growing by 16.5% in 2016‚ reaching R4.4-billion. By 2021 it will increase by R8.1-billion.
“By 2021 of the total internet access‚ 90% would be mobile‚” she said.
Myburgh said while they had seen a high growth rate in virtual reality and video games‚ they were smaller in absolute rand value.
Among the non-digital segments‚ magazines and newspapers are set to decline. Cinema remains popular and live experience still being an attractive evening’s entertainment‚ said Myburgh.
“Advertising makes up 37% of total cinema spend in South Africa which is way above any other country globally.”
Box office and cinema advertising is forecast to reach R2.2-billion in 2021‚ up from R1.9 billion in 2016.
Trends are predominantly upward despite a forecast decline in box office in 2017‚ down from a record high of R1.2-billion in 2016 to R1.1-billion in 2017.
The report says one of the reasons for the slight dip was a reduction in the number of films released. Local film releases were down by nearly a third in the first half of 2017 compared to the same period of 2016.
“The South African film sector‚ however‚ risks being undermined by the political and economic issues in the country as a whole. The travails of the national broadcaster and the problems reported by some producers in securing prompt payment of DTI incentives have created uncertainty‚” said the report.
With South Africa’s incentives‚ studio facilities‚ diverse locations and soft currency‚ the country has a chance to establish itself as a leading destination for international production.
“Furthermore‚ it has been calculated that the black middle class has more than trebled in size over the last decade. As affluence‚ access to credit and education levels have risen over this period‚ so has disposable income. With more screens opening to cater for this demand‚ cinema going will continue to grow.”
Myburgh said music streaming has grown by 76%.
“It is a saviour to the music industry in SA. When compared to previous years‚ music was declining. Now it has seen growth driven by streaming and live music‚” she said.
Myburgh said the key driver was getting the consumer experience right.
In four years‚ 78% of South Africans will have internet access
Internet access spend contributed to the growth in South Africa’s entertainment and media industry.
During 2015 and 2016 the entertainment and media industry grew by 10.7%‚ owing to internet access spend.
According to PricewaterhouseCoopers Entertainment and media outlook for 2017 – 2021 — which provides an in-depth analysis of the trends shaping the entertainment and media industry in South Africa‚ Nigeria‚ Kenya‚ Ghana and Tanzania — South Africa’s entertainment and media industry forecasts the sector’s total revenue to reach R177.9-billion by 2021‚ up from R132.7bn in 2016‚ with internet access accounting for R27-billion or 60% of the increase.
The mobile internet penetration of 52.3% in 2016 is set to increase to 77.8% in 2021.
“Over the next five years there will be a hundred-million mobile internet subscribers in South Africa‚ Nigeria‚ Kenya‚ Ghana and Tanzania‚” said Vicky Myburgh‚ PricewaterhouseCoopers SA entertainment and media leader.
Digital revenue is also the source of the large majority of growth‚ says the report.
Internet advertising in South Africa continues to grow rapidly‚ with the total on-line advertising spend growing by 16.5% in 2016‚ reaching R4.4-billion. By 2021 it will increase by R8.1-billion.
“By 2021 of the total internet access‚ 90% would be mobile‚” she said.
Myburgh said while they had seen a high growth rate in virtual reality and video games‚ they were smaller in absolute rand value.
Among the non-digital segments‚ magazines and newspapers are set to decline. Cinema remains popular and live experience still being an attractive evening’s entertainment‚ said Myburgh.
“Advertising makes up 37% of total cinema spend in South Africa which is way above any other country globally.”
Box office and cinema advertising is forecast to reach R2.2-billion in 2021‚ up from R1.9 billion in 2016.
Trends are predominantly upward despite a forecast decline in box office in 2017‚ down from a record high of R1.2-billion in 2016 to R1.1-billion in 2017.
The report says one of the reasons for the slight dip was a reduction in the number of films released. Local film releases were down by nearly a third in the first half of 2017 compared to the same period of 2016.
“The South African film sector‚ however‚ risks being undermined by the political and economic issues in the country as a whole. The travails of the national broadcaster and the problems reported by some producers in securing prompt payment of DTI incentives have created uncertainty‚” said the report.
With South Africa’s incentives‚ studio facilities‚ diverse locations and soft currency‚ the country has a chance to establish itself as a leading destination for international production.
“Furthermore‚ it has been calculated that the black middle class has more than trebled in size over the last decade. As affluence‚ access to credit and education levels have risen over this period‚ so has disposable income. With more screens opening to cater for this demand‚ cinema going will continue to grow.”
Myburgh said music streaming has grown by 76%.
“It is a saviour to the music industry in SA. When compared to previous years‚ music was declining. Now it has seen growth driven by streaming and live music‚” she said.
Myburgh said the key driver was getting the consumer experience right.
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