entertainment and media outlook 2015-2019 south africa, nigeria,...
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Entertainment and media outlook 2015-2019 South Africa, Nigeria, Kenya
www.pwc.co.za/outlook
Beyond digital: empowered consumers demand choice and convenience that transcend platforms
Charles Stuart
Internet
Television
Filmed entertainment
Video games
Newspaper publishing
Magazine publishing
Book publishing
Business-to-business
Music
Out-of-home advertising
Radio
www.pwc.co.za/outlook Consumer/end-
user & advertising spending
5 year historic & 5 year forecast data
3 countries
11 segments
$
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bigger faster
Mature Next wave
Slow growing
Up & comers
11 5
18 20
countries
3.4%
8.8% 8.9%
3.4% aggregate
market size (2019)
average CAGR (2014 – 19)
Analyzing the Global overall 5.1% CAGR …
Slow growing (3.4%)
Our quadrant view in detail Next wave
(8.8%) Mature (3.4%)
Up & comers (8.9%)
US
Japan
Spain
Belgium
Greece
Romania
Singapore
South Africa (9.4%) $10.6m à $16.7m
Indonesia
Vietnam Kenya (12.9%) $1.8m à $3.3m
Nigeria (15.1%)
$4m à $8.1m
China
Brazil
India Russia Mexico
UK
UAE (7.5%) $3.3m à $4.8m
Saudi Arabia (7.4%)
$6.9m à $10m
MENA (9.3%)
$9.3m à $14.5m
Growth in Internet will drive advertiser and consumer spending
Broadband access CAGR (2015 – 2019)
12.7% 19.6%
20.4%
5.1% 9.4%
12.9% 15.1%
3.7% 10.8%
20.2% 17.9%
Mobile Internet access CAGR (2015 – 2019)
E&M CAGR (2015 – 2019)
22.9%
Global
Kenya
Nigeria
South Africa
Global South Africa
Nigeria
Kenya
Kenya
South Africa Global
Nigeria
Mobile Internet subscriber penetration (% of population) 2010 2014 2019
Growth in Internet will drive advertiser and consumer spending
Nigeria
Kenya
10%
1%
1%
37%
7%
7%
69%
31%
35%
14% 35% 59% Global
1.3%
0.8%
-0.3%
0.4%
4.6%
3.1%
3.7%
4.1%
2.5%
4.1%
5.7%
5.1%
8.8%
12.1%
0.7%
1.3%
1.9%
2.9%
3.5%
3.6%
5.5%
5.6%
5.9%
6.2%
6.6%
9.4%
18.6%
21.7%
Book publishing
Music
Newspaper publishing
Magazine publishing
Out-of-home advertising
TV subscriptions
Business-to-business
Filmed entertainment
Radio
TV advertising
Video games
Total
Internet access
Internet advertising South Africa Global
Global vs South Africa segment CAGR … Growth in aggregate spending (2015 – 2019 CAGR)
Total Global
Total South Africa
5.1%
9.4%
Magazine publishing
871 901
930 961
984 1005
2014 2015 2016 2017 2018 2019
CAGR (%)
• Market will see slowing but steady growth with trade magazine growth outpacing consumer magazines.
• Digital is on the rise, but print remains king.
• Smartphones will be key to digital growth.
• All-you-can-read subscription services and interactive ads are yet to take off but could prove transformational. 2.9 Total
Non-digital
Digital
1.8
28.1
South Africa aggregate spending (US$m) Insights at a glance
Digital revenue—share of total (%)
2.5%
2014
7.7%
2019
$77m $22m
-0.3%
0.4%
2.5%
1.3%
3.1%
3.7%
4.1%
4.6%
4.1%
0.8%
5.7%
5.1%
8.8%
12.1%
-0.2%
1.3%
3.4%
5.0%
5.3%
6.7%
6.8%
7.2%
10.1%
11.3%
14.3%
15.1%
21.2%
31.6%
Newspaper publishing
Magazine publishing
Radio
Book publishing
TV subscriptions
Business-to-business
TV advertising
Out-of-home advertising
Filmed entertainment
Music
Video games
Total
Internet access
Internet advertising Nigeria Global
Global vs Nigeria segment CAGR … Growth in aggregate spending (2015 – 2019 CAGR)
Total Global
Total Nigeria
5.1%
15.1% Nigeria
Magazine publishing
221 225
229 231 234 236
2014 2015 2016 2017 2018 2019
CAGR (%)
• Consumer magazines continue to dominate the market.
• Heavily print focused with no real digital impact over the forecast period.
• Print advertising revenues declining.
• Infrastructure challenges hinder growth.
1.3 Total
Non-digital
Digital
1.0
21.2
Nigeria aggregate spending (US$m) Insights at a glance
Digital revenue—share of total (%)
1.4%
2014
3.0%
2019
$7m $3m Nigeria
1.3%
4.1%
0.4%
-0.3%
2.5%
4.6%
0.8%
3.7%
5.1%
3.1%
4.1%
5.7%
12.1%
8.8%
2.6%
3.4%
3.5%
3.9%
7.5%
7.7%
7.8%
9.6%
12.9%
13.6%
14.1%
14.5%
16.8%
20.4%
Book publishing
Filmed entertainment
Magazine publishing
Newspaper publishing
Radio
Out-of-home advertising
Music
Business-to-business
Total
TV subscriptions
TV advertising
Video games
Internet advertising
Internet access Kenya Global
Global vs Kenya segment CAGR … Growth in aggregate spending (2015 – 2019 CAGR)
Total Global
Total Kenya
5.1%
12.9% Kenya
Magazine publishing
76 78 81 83
86 90
2014 2015 2016 2017 2018 2019
CAGR (%)
• Consumer magazine revenues account for almost 95% of the market.
• Heavily print focused with no real digital impact over the forecast period.
• Growing middle class will drive consumer magazine revenue as they look to lifestyle magazines for advice.
• Distribution can be a problem. 3.5 Total
Non-digital
Digital
3.0
19.3
Kenya aggregate spending (US$m) Insights at a glance
Digital revenue—share of total (%)
2.6%
2014
4.4%
2019
$4m $2m Kenya
Looking forward
Successful entertainment and media companies should focus on three imperatives
Audience measurement
Continue innovating, particularly around the product and the overall user experience
Put mobile (and increasingly video) at the center of their consumer offerings
Stop compartmentalizing consumer relationships by distribution channel
OTT disruption
Reaching the next five billion consumers
Maximizing the value of content
Addressable advertising
Contextual awareness and data responsibility
Four forces reshaping the advertising landscape
We continue to be in an environment in which consumers call the shots!
Many thanks! Questions?