Global report forecasts growth in African music sector

As a recent article in Billboard magazine reveals, hopes are high for music sales in emerging markets such as Africa and South Asia.

The Outlook forecasts consumer spending on recorded music revenues to reach $43 million and $19 million for Nigeria and Kenya respectively this year. Both markets are undergoing shifts also seen elsewhere in the world, meaning digital gains will roughly offset physical losses. South Africa is expected to generate $85.3 million in consumer spending on music this year, a figure multiples larger than expected spending in either Kenya or Nigeria.

PwC expects Nigeria's physical market to decline $3 million to $14 million by 2017, while its digital market is predicted to grow by $2 million, to $28 million. In Kenya, a $2-million decline in the physical market in 2017 is expected to overshadow a $1-million increase in the digital market.

The report notes that a number of factors influence a country's digital music spending: per-capita gross national income (PGNI), adoption of smartphones, affordability of mobile broadband, digital services' marketing capabilities, the pricing of digital services, and competition from physical and digital piracy. The availability of payment options, the role of music in a country’s culture and the ability for music companies to operate smoothly are also noted as key factors that influence a country's digital music spending.

Consumers want freedom

Another important finding is that consumers are seemingly no longer seeing a significant divide between digital and traditional media: what they want is more flexibility, freedom and convenience in when and how they consume music.

Marcel Fenez, PwC’s global leader for entertainment and media, is quoted as saying: "Digital or non-digital - for consumers it’s all about content experiences. Given the wide variations in consumer preferences, the challenge for entertainment and media companies is to blend data insights and consumer intuition to maximise the value of the experiences they offer. The prize for achieving this is heightened by the fact that the consumer has never been more up for grabs than today."

More details on the 2015 Outlook are available here. For a detailed analysis of the Outlook visit Billboard.com. The 2015 Outlook is not yet available for free, but you can access the 2013-2017 Outlook here and the 2014-2018 report here.