It pays handsomely to be in the media and entertainment industry in Kenya, according to a report by audit company PricewaterhouseCoopers (PwC). According to the report, Kenya’s total entertainment and media industry was valued at US$1.8 billion (sh190,799,100,000) in 2014.
The report titled Entertainment and media outlook: 2015 – 2019 (South Africa – Nigeria-Kenya), credits the digital disruption in the country and Africa in general as the push factor, spiraling growth of the sectors.
Vicki Myburgh, entertainment and media leader for PwC Southern Africa, 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.”
She added that consumers are choosing offerings that combine an outstanding and personalized user experience with an intuitive interface and easy access. This includes shared physical experiences like cinema and live concerts, which appear re-energized by digital and social media.
The growth in Kenya is 13.3 percent from 2013, when it stood at US$1.6 billion (sh165 billion). The market is expected to surpass the US$3 billion mark in 2019 to reach US$3.3 billion.
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,” adds Myburgh.
In Kenya, Something interesting is that the report predicts TV advertising to overtake radio in 2016. Traditional mediums such as TV, radio and newspapers will continue to be the first choice for most Kenyan advertisers in the foreseeable future.
The Internet is expected to be the largest driver of growth, followed by television and radio. The recent Communications Authority of Kenya (CAK) January to March 2015 report indicates that internet subscription stood at 18.4 million Kenyans.
Myburgh concluded that 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.