ICT

Consumer Demand for Personalisation Drives Revenue Growth in Africa’s Entertainment Industry

Google+ Pinterest LinkedIn Tumblr +

PricewaterhouseCoopers (PwC), a multinational professional services network, has found that the rise of increasingly personal and personalised media interaction, fueled by technology and evolving customer behaviour, is gaining momentum.  It has emerged that consumers are using an array of connected devices to organise, curate and discover their own unique worlds of media. In response, companies are designing their offerings to revolve around personal preferences, using data and usage patterns to pitch their products not at audiences of billions, but separately at billions of individuals.

These are some of the highlights from PwC’s 10th annual edition of a report dubbed the ‘Entertainment & Media Outlook: 2019-2023 – An African Perspective’, which was released this November.

“These profound shifts are taking place against a background of ongoing global growth in entertainment and media (E&M) revenues. By 2023 total E&M revenue in South Africa is expected to reach R170.5 billion ($11.4 billion), up from R128.9 billion ($8.6 billion) in 2018,” PwC said in a recent statement.

PwC discovered that consumer spending on Internet access is a major contributor to growth, accounting for 61% of the overall rise in E&M revenue. Total Internet access is forecast to increase at an 8.2% compound annual growth rate (CAGR) over the forecast period and reach R77.7 billion ($5.2 billion) in 2023.

“This year, the Outlook looks at the industry through the eyes of the consumer – the central theme of this growing media is personal and increasingly digital. There is an increasing shift to personalised experiences all around us in the fast-changing human behaviours involving E&M,” says Vicki Myburgh, Entertainment and Media leader for PwC Southern Africa.

“Consumers around the world want to exert greater control over how they experience and enjoy media content. They are managing their own media consumption by way of smartphones and an expanding array of devices, by curating their own personal selection of channels via over-the-top (OTT) services and by bringing more digital media content into their lives via smart homes and connected cars,” she added.

The Outlook is a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries, including 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, music, out-of-home (OOH) and radio. Between them, the five countries considered in the Outlook, will add $13.1 billion in revenue over the next five years, a CAGR of 11.9%. This is indicative of the still-strong capacity for organic growth, across the countries with many millions of consumers seeing improvements in their discretionary incomes over the next five years.

“The breakneck pace of technological progress is the catalyst for growth, as Internet access revenue rises drive overall revenue forward. But away from this, trends and norms differ greatly by country, with markets firmly resisting easy characterisation. All of this means that companies that want to position themselves for a successful future will have to focus intently on consumers, innovate and experiment continually and be prepared to make significant investments,” Myburgh concludes.

Share.

Leave A Reply