The report on the South African entertainment and media industry added the country’s entertainment and media market is expected to grow by 10.2 per cent compounded annually (CAGR) from 2014 – 2018 to a value of 190.4 billion rand.
“By far the largest segment will be the Internet. Combined revenues from Internet access and Internet advertising will account for an estimated 71.6 billion rand in 2018, accounting for 37.6 per cent of total revenues,” said PwC’s South African Entertainment and Media Outlook: 2014-2018.
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“Growth in the entertainment and media industry is largely being driven by the Internet and by consumers’ love of new technology, in particular mobile technology as well as applications powered by data analytics and cloud services,” Vicki Myburgh, Entertainment & Media Industries Leader for PwC South Africa added.
Myburgh added that technology is increasingly being driven by consumers’ needs and expectations.”
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PwC also predicts that aside from the internet, the fastest growth will be seen in video games and radio, which will enjoy growth rates at nine per cent and 8.2 per cent respectively.
“Video games has made the greatest transition to digital, largely due to the popularity of mobile gaming, but also because of the increased potential for digital distribution of console games,” adds Myburgh.
According to the Outlook, the slowest growing segment in the E&M industry will be the music industry.
The music industry has been declining as it was worth 2.13 billion rand in 2013, down from the 2009 figure of 2.41 billion rand.
Annual revenue is forecast to grow marginally by a CAGR of 0.5 per cent to remain relatively flat at 2.18 billion rand in 2018.
“Continued growth in broadband and smartphone penetration is accelerating the shift to digital music. Digital music is cheaper, offers instant access and is more portable – these are all major advantages,” adds Myburgh.