MAM
Digital fuels growth in Africa’s entertainment & media industry: PwC
MUMBAI: After more than a decade of digital disruption, the African entertainment and media industry has entered a new landscape – one where the media is no longer divided into distinct traditional and digital spheres, according to a report from PwC titled Entertainment and media outlook: 2015 – 2019 (South Africa – Nigeria-Kenya).
The Outlook forecasts that South Africa’s entertainment and media industry is expected to grow from R112.7 billion in 2014 to R176.3 billion in 2019, at a compound annual growth rate (CAGR) of 9.4 per cent. Digital spend is expected to fuel the overall growth. South Africa’s Internet access market will rise rapidly from R32.5 billion in 2014 to R76.2 billion in 2019, far ahead of any other consumer spend category, making it the largest contributor to South Africa’s total entertainment and media revenues.
PwC Southern Africa entertainment and media leader Vicki Myburgh said, “This year’s Outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile. Increasingly, though, it’s clear that consumers see no significant divide between digital and traditional media – what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content.”
“Consumers are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access. This includes shared physical experiences like cinema and live concerts, which appear re-energised by digital and social media,” Myburgh added.
The Outlook presents annual historical data for 2010–2014 and provides annual forecasts for 2015–2019 in 11 entertainment and media segments for South Africa, Nigeria and Kenya: the Internet, television, filmed entertainment, video games, business-to-business publishing, recorded music, newspaper publishing, magazine publishing, book publishing, out-of-home advertising and radio.
Aside from the Internet, the Outlook predicts that the fastest growth will be seen in video games, business-to-business and filmed entertainment. “But it is Internet access itself that is acting as a driver of revenues in video games and film, creating new revenue streams by making over-the-top (OTT)/streaming or social/casual gaming viable to more consumers and thereby cancelling out physical falls,” added Myburgh.
Music, magazines and newspapers, which will show only moderate consumer growth, are three segments that face strong competition from the Internet. The music market was worth R2.01 billion in 2014, compared to R2.08 billion in 2013. Annual revenue is forecast to grow marginally by a CAGR of 1.3 per cent over the next five years to remain relatively flat at R2.1 billion in 2019.
Television remains a highly significant contributor to consumer spending, with combined revenues from TV subscriptions, advertising and licence fees projected to reach R40.9 billion by 2019. The report also shows that one consistent trend – and not just in South Africa, but globally – is the rise in overall consumer spending through to 2019 on video-based content and services, against far flatter prospects for spending on primarily text-based content and services. If consumer revenue from TV subscriptions and licence fees is aggregated with that from video games, around R4.5 billion will be added between 2014 and 2019.
In contrast, consumer revenue from books, magazines and newspapers is expected to rise by just R1.3 billion over the entire forecast period.
Alongside video providers, a further thriving source of revenue over the coming five years will be live events. Revenue from live music is expected to grow at a CAGR of 7.9 per cent in the next five years, reaching R1.5 billion in 2019, up from R1 billion in 2014. Box office revenues are also steadily increasing at a CAGR of three per cent to reach R972 million by the end of the forecast period.
The appeal of live entertainment has also had a positive effect on the related advertising revenues. South African cinema advertising revenue is also rising at a CAGR of 6.7 per cent and will be worth an estimated R884 million in 2019. “It is clear that consumers value – and are willing to pay a premium for – real-life physical entertainment experiences, and these in turn are the types of consumers that advertisers wish to target,” said Myburgh.
The report shows that South Africa’s total entertainment and media advertising revenue is expected to rise by 5.6 per cent from R39.7 billion in 2014 to R52.1 billion in 2019. TV advertising is by far the largest contributor to total advertising revenues, followed by newspaper advertising: however, their combined 52 per cent share of total advertising in 2014 will fall slightly to 51 per cent in 2019.
Despite the strong projections for advertising, its share of the entertainment and media mix is predicted to decrease by 2019 as consumer spending takes an ever larger part of the pie; from 35 per cent in 2014, advertising will account for just 30 per cent of spending in 2019.
“Affordable Internet access will continue to digitally disrupt the market in novel and innovative ways. The ongoing spread of services to mobile networks, novel devices and emerging markets will change how media and entertainment are served, consumed and monetised in multiple ways. Affordable Internet access will also inhibit the revenue growth of various sectors as consumers use it to access free, ad-funded and lower-priced subscription-based versions of new and existing media services,” said Myburgh.
Nigeria
Nigeria’s entertainment and media market grew by 19.3 per cent in 2014 to reach $4 billion. By 2019, the market will be more than twice as big, with an estimated total revenue of $8.1 billion. As in South Africa, the Internet will be the key driver of growth for Nigeria. Television, comprising revenue from TV advertising and subscriptions, is the other main driver.
Excluding Internet access, television, filmed entertainment and video games are the areas where Nigerian consumers are expected to spend the most over the next five years.
Consumer spend on video games and music is set to see the sharpest rise in forecast CAGRs at 14.3 per cent and 11.4 per cent, respectively. Piracy continues to remain a problem in Nigeria, limiting growth across several entertainment and media sectors.
Kenya
Kenya’s total entertainment and media industry was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.
Again, the Internet is expected to be the largest driver of growth, followed by television and radio. TV advertising will overtake radio in 2016, and Internet advertising will see the fastest growth rate at a CAGR of 16.8 per cent. Traditional mediums such as TV, radio and newspapers will continue to be the first choice for most Kenyan advertisers in the foreseeable future.
Kenya’s total entertainment and media industry was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.
“Today’s media companies need to do three things to succeed: innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer’s experience,” concluded Myburgh.
MAM
BLR Airport Launches ‘Connections’ Service to Ease Transit Travel
New initiative targets smoother transfers as Bengaluru hub traffic rises 30 per cent.
MUMBAI: Missed connections may be a traveller’s nightmare but Bengaluru is trying to make them a thing of the past. Kempegowda International Airport Bengaluru (BLR Airport) has rolled out ‘Connections by BLR’, a new transfer programme designed to take the friction out of connecting journeys. Built around three pillars ease, efficiency and experience,the initiative aims to simplify what is often the most stressful leg of air travel.
The move comes as transfer traffic at BLR Airport climbs sharply, up more than 30 per cent year-on-year. Transfers currently account for around 15 per cent of total passenger traffic and are projected to touch 20 per cent by 2026, signalling a clear shift in how the airport is positioning itself within airline networks.
At its core, the programme focuses on making navigation intuitive and downtime more comfortable. Dedicated transfer desks have been set up across terminals, supported by colour-coded wayfinding blue and yellow signage designed for quick recognition. Inter-terminal movement is being streamlined through complimentary shuttle services with predictable wait times, while designated transfer zones aim to reduce passenger confusion.
Beyond logistics, the airport is leaning into experience. Travellers in transit now have access to a wider choice of lounges, curated retail and food and beverage options, as well as sleeping pods for short stays. For longer layovers, transit hotels in both Terminal 1 and Terminal 2 offer boutique in-terminal accommodation, an increasingly sought-after feature as global travel patterns evolve.
The timing is strategic. BLR Airport now connects to 114 passenger destinations 80 domestic and 34 international with key routes spanning Delhi, Mumbai, Kolkata, Hyderabad and Pune domestically, and Singapore, London Heathrow, Dubai, Abu Dhabi and Kuala Lumpur internationally. Recent additions such as Hindon, Bidar and Silchar within India, alongside Dammam, Hanoi and Riyadh overseas, are further expanding its reach.
Infrastructure is also catching up with ambition. Developments including the West Cross Taxiway, Terminal 1 refurbishment and Terminal 2 expansion are laying the groundwork for higher capacity and smoother operations critical for any airport aiming to become a serious transfer hub.
Bangalore International Airport Limited chief operating officer Girish Nair framed the initiative as both a response to demand and a forward-looking play. He pointed to the growing depth of the airport’s network and the opportunity to build a more reliable transfer ecosystem that benefits both passengers and airline partners.
In an era where travel is as much about transitions as destinations, BLR Airport is betting that a seamless connection might just be the journey’s most important upgrade.
