A recent estimate from PricewaterhouseCoopers (PwC) says that Nigeria’s entertainment and media business will reach $5.8 billion by 2029, thanks to digital growth and a young audience.
The Guardian says that Nigeria had the highest growth rate in Africa in 2024, at 11.2 percent. Kenya had the second highest, at 7.1 percent, while South Africa had the third highest, at 6.2 percent.
PwC noted, “The African entertainment and media sectors continue to do better than global benchmarks, showing that they can handle ongoing macroeconomic problems.”
PwC’s analysis shows that Nigeria’s overall media and entertainment revenue will expand at a compound annual growth rate (CAGR) of 7.2% from $2.5 billion in 2020 to $4.1 billion in 2024. By 2029, it is expected to reach $5.8 billion.
Digital platforms are still the key drivers of this expansion, with mobile and fixed internet services making up the bulk of the sector. These services will rise from $3.3 billion in 2024 to $4.7 billion in 2029.
During the same time, music, radio, and podcasts are expected to go up from $67 million to $85 million, while internet ads are expected to go up from $246 million to $438 million.
The report said that video games and esports will expand from $194 million in 2024 to $260 million in 2029. OTT video streaming will also grow, from $29 million to $43 million.
PwC said that by 2028, gaming and esports will be more popular than regular TV in Nigeria, a year before the rest of the world, thanks to more people using mobile devices and the internet.
It said, “By 2029, gaming and esports will have overtaken traditional TV around the world.” One year earlier, Nigeria follows this trend, with gaming claiming the top in 2028.
PwC said that advertising is still the major source of income around the world and in Nigeria. They expect that by 2029, 84% of Nigeria’s total advertising spending will be on digital commercials.
The research went on to say, “By 2029, global advertising revenue is expected to be more than $300 billion higher than consumer spending.”
The research also talked about how artificial intelligence (AI) is having a bigger and bigger impact on making media and getting people to watch it.
PwC said, “Generative AI is becoming a game-changer in the media and entertainment industry, improving content creation, recommendation engines, and customer engagement.”
It also said that live entertainment and esports had bounced back, with music concerts and festivals making more money than they did before the outbreak.
PwC stressed that internet access is still the most important part of the entertainment sector, making up more than 80% of all E&M spending in Nigeria.
It said, “Connectivity is still the biggest part of the entertainment and media industry.”
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