“Nigeria has one of the fastest-growing markets in the entertainment and media industry,” says the global company PricewaterhouseCoopers (PwC) in its 2016 to 2020 Entertainment and Media Outlook report for South Africa, Nigeria and Kenya.
The report, released on 22 September, provides historical performance figures in the entertainment industry from the first half of the decade (2011 to 2015) and forecasts performance in the same areas for the next four years.
According to the report, the Nigerian music industry was worth $40 million in 2011 and $47 million in 2015. By 2020 this figure is expected to double to $86 million.
PwC says the Nigerian music industry is benefiting significantly from mobile music revenue because of its “piracy-proof” nature.
“Nigeria’s total music revenue is dependent on ringtones and ringback tones, with the legitimate music sector being small otherwise,” say the report.
The report notes that digital platforms will account for over 90% of Nigeria’s recorded music sales in 2020.
The report focuses on 11 categories, namely Internet, television, filmed entertainment, video games, business-to-business publishing, newspaper publishing, recorded music, magazine publishing, book publishing, out-of-home-advertising and radio.
All of these categories will show marked growth in Nigeria and the other countries covered over the next four years. This growth, according to the report, will be propelled by improving internet access, especially in Nigeria.
Overall, Nigeria emerges as the country with the highest reliance on internet for revenue.
“Although South Africa’s market is characterised by a tendency to be overly weighted to Internet access with that segment’s share approaching 40% by 2020, this is nothing compared to the stranglehold Internet has over Nigeria’s entertainment and media industry revenue,” says the report.
“In 2015, Internet access revenue accounted for just under 50% of the US$3.8 billion figure (across the whole entertainment and media industry) and, in 2020, that proportion will rise to 61%.”
The report by PwC ties into announcements made by the telecoms company MTN. Last year, the company was the “largest distributor of music in Nigeria,” and this year it has announced a revenue of $70m from selling music across Africa.
With a predicted annual growth rate of 11% across the eleven categories, Nigeria will grow at a pace that “globally, only Indonesia (13.2%) can exceed.” Nigeria and Indonesia are among the 10 most populous countries in the world, and as such have a considerable market for entertainment products.
The increased growth that will be seen throughout this decade has coincided with the rise in popularity of Nigerian music globally as the country continues to export its talent across the Atlantic.
Weeks ago, a number of Nigerian artists were among an all-star line-up at the One Africa Music Fest in the USA. Nigerian popstars Wizkid and Davido have international deals with Sony and Tiwa Savage has signed a deal with Jay Z’s Roc Nation. Early this year, Sony opened a west African office in Lagos.