Entertainment and Media Outlook 2014-2018 Forecast Consumer and Advertising Spending Data for You
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Entertainment and media outlook: 2014 – 2018 South Africa – Nigeria – Kenya 5th annual edition September 2014 An in-depth analysis of the trends shaping the entertainment and media industry in South Africa, Nigeria and Kenya www.pwc.co.za/outlook 5th annual edition Entertainment and media outlook: 2014 – 2018 South Africa – Nigeria – Kenya PwC helps organisations and individuals create the value they’re looking for. We’re a network of fi rms in 157 countries with more than 184 000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and fi nd out more by visiting us at www.pwc.com. PricewaterhouseCoopers Inc. 2 Eglin Road Sunninghill, 2157 +27 11 797 4000 www.pwc.co.za © 2014 Published in South Africa by PricewaterhouseCoopers. All rights reserved. “PwC” is the brand under which member fi rms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these fi rms form the PwC network. Each fi rm in the network is a separate legal entity and does not act as agent of PwCIL or any other member fi rm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member fi rms nor can it control the exercise of their professional judgment or bind them in any way. Contents 2 Editorial team 3 About the Outlook 7 Contacts 8 Methodology 9 Use of Outlook data Section Section Section 01 02 03 13 Industry overview 59 Internet 293 Digital trust 39 Africa Connectivity 89 Television 296 Glossary of terms Index 109 Filmed 300 Further reading entertainment 304 PwC Entertainment 127 Radio & Media practice – country contacts 145 Music 165 Magazine publishing 183 Newspaper publishing 203 Consumer, educational and professional book publishing 221 Business-to-business publishing 241 Out-of-home advertising 255 Video games 275 Sports PwC | 1 Editorial team Osere Alakhume Michael Mugasa Nigerian Entertainment Kenyan Entertainment and Media Leader and Media Leader Louis de Jager Charles Stuart Vicki Myburgh Sunet Liebenberg Elenor Smith Senior Manager Associate Director South African Senior Manager Senior Manager Entertainment & Media Industry Leader 2 | Entertainment and media outlook: 2014 – 2018 • South Africa – Nigeria – Kenya About the Outlook Let us analyse the Entertainment and media outlook 2014-2018 forecast consumer and advertising spending data for you From fi lmed entertainment to How will consumer and … across 12 magazine publishing, in PwC’s advertising spending entertainment and media Entertainment and media outlook: shape our industry… industry segments 2014-2018 (South Africa – Nigeria – Kenya) (the Outlook) we uncover As the entertainment and media Not all entertainment and media how shifts in spending are likely to industry moves at pace – largely segments are the same. All shape the future of 12 entertainment shaped by where consumers and segments are at different stages and media industry segments over advertisers spend their money – it of transformation, growth and the next fi ve years. We also share becomes increasingly diffi cult to maturity. From fi lmed entertainment our thinking on the hot topics form a picture of what lies ahead. to magazine publishing, we uncover transforming the industry. In Outlook we attempt to predict how shifts in spending are likely to how industry trends will play out shape the future of these 12 industry Our hope is that the Outlook will help by analysing forecast consumer and segments over the next fi ve years: you form a much clearer picture of advertising spending data, which tomorrow and make more informed we hope will help you form a much business decisions based on what’s clearer picture of tomorrow and make Internet ahead. more informed decisions. Actual historic and forecast consumer Television and advertising spending data for 12 industry sectors across the three Filmed entertainment countries is also available online on www.pwc.co.za/outlook. Radio The online Outlook provides raw data and individual country commentary. To fi nd out more about the online Outlook, take the tour on Music page 4 or visit www.pwc.co.za/outlook Magazine publishing Newspaper publishing Experience the global Outlook Consumer, educational and professional book publishing This edition of the Outlook is part of a suite of PwC publications covering the global Business-to-business entertainment and media industry. The Global publishing entertainment and media outlook 2014-2018 is a comprehensive source of consumer and Out-of-home advertising advertising spend data, also available via subscription at www.pwc.com/outlook. Video games This publication provides in-depth fi ve-year historic and fi ve-year forecast spend data and Sports commentary for 13 industry segments in over 50 countries around the world. PwC | 3 Q: How do I access consumer and advertising spending data? A: Take a look around the Outlook 2014-2018 A comprehensive and comparable online source of consumer and advertising spending Understanding where consumers and advertisers are spending their money in the entertainment and media industry can help inform many important business decisions. But being able to fi nd comparable data, for multiple entertainment and media sectors and countries from a single source, can be a challenge. PwC’s Entertainment and media outlook for South Africa, Nigeria and Kenya provides a single comparable source of consumer and advertiser spending data and analysis: • For 12 entertainment and media segments; • Across three countries; • Providing fi ve-year historic and fi ve-year forecast spending data from 2009-2018; • Updated annually and now in its 5th year. The data-intuitive online functionality allows you to easily browse, compare and contrast spending, making it a powerful online tool to help answer important questions about trends that are shaping the industry. Q: Where are consumer and advertisers spending their money now and over the next fi ve years? A: Browse consumer and advertising spending by segment. 4 | Entertainment and media outlook: 2014 – 2018 • South Africa – Nigeria – Kenya Q: How does spending vary by country? A: Browse consumer and advertising spending by country. Q: How is spending shifting between digital and non-digital, consumer and advertiser, historically and over the next fi ve years? A: Filter spending by consumer and advertising and by digital and non-digital and view results from 2009- 2018. Q: How does spending compare by segment and by country? A: Make your own data selections, export and create your own charts and graphs. PwC | 5 Q: How are shifts in segment spending shaping individual markets? A: Read segment commentary at an individual country level and download as a PDF. Individual and corporate-level access to PwC’s Global entertainment and media outlook 2014-2018 Whether you are looking to access the full data and commentary for 13 industry segments or prefer to subscribe to individual segments and need access either across your organisation or for a single user only, there are tailored subscription options available. Subscription options to suit your needs: Individual user licence with access to all data and commentary for 1 13 segments and 54 countries Individual user licence per segment (or multiple segments) with access 2 to data and commentary for 54 countries. Corporate licence with access to all data and commentary for 3 13 segments and 54 countries for all employees across your organisation. Subscribe to the online Outlook @ www.pwc.com/outlook 6 | Entertainment and media outlook: 2014 – 2018 • South Africa – Nigeria – Kenya Contacts Technology, Information, Communications and Entertainment Industry Leader – PwC Africa Berno Niebuhr [email protected] +27 12 429 0050 Entertainment & Media Leader – South Africa Vicki Myburgh [email protected] +27 11 797 4305 Entertainment & Media Leader – Nigeria Osere Alakhume [email protected] +234 (1) 271 1700 Ext 4103 Entertainment & Media Leader – Kenya Michael Mugasa [email protected] +254 (20) 2855688 Assurance services Nana Madikane [email protected] +27 11 797 5490 Shane Murugen [email protected] +27 11 797 4884 Advisory services Marthie Crafford [email protected] +27 11 797 4555 Hentus Honiball [email protected] +27 11 797 4458 Taxation services Karen Rosingana [email protected] +27 11 797 0591 Corporate fi nance Jan Groenewald [email protected] +27 11 797 5380 Transaction services Peter McCrystal [email protected] +27 11 797 5275 PwC | 7 Methodology Historic data collection How we report on the data Infl ation in each chapter All forecasts have been built starting Across all chapters, unless stated with the collection of historical data Segment spending consists of otherwise, fi gures are reported in from a variety of sources. A baseline advertising and consumer spending nominal terms refl ecting actual of accurate and comprehensive directly related to entertainment spending transactions and therefore historic data is collected from and media content. Each chapter include the effects of infl ation. publicly-available information, introduction begins with the Compound annual growth rates including from trade association and defi nition of the spending streams (CAGRs) are also therefore refl ected government agencies. When this data that are included in that segment. We in nominal terms. is used directly, these sources are do not include spending on hardware cited accordingly. In addition to this, that may be needed to access content. Currency conversions interviews with relevant associations, regulators and leading players have Consumer spending is counted for at Currency conversions for all amounts been held to gather insights and the consumer or end-user level, not used in this publication are calculated estimates not available in the public at the wholesale level, and includes at the following conversion rate to the domain. When this information is retail mark-ups where applicable.