Africa is a continent of diversity, creativity, and opportunity. With a population of over 1.3 billion people, many of whom are young and tech-savvy, Africa has the potential to become a major player in the global entertainment and media (E&M) market. But what are the challenges and opportunities facing this emerging sector?
According to PwC’s Africa Entertainment and Media Outlook 2022-2026, the E&M revenue across South Africa, Nigeria and Kenya grew strongly in 2021, recovering from the effects of the COVID-19 pandemic1. The report projects that these three markets will collectively generate $15.9 billion in E&M revenue by 2026, with a compound annual growth rate (CAGR) of 9.8%. The main drivers of this growth are internet-based media, such as video-on-demand (VOD), music streaming, podcasts, and online gaming2.
However, Africa’s E&M market is not homogeneous, but rather consists of different sub-regions with varying levels of development, infrastructure, regulation, and consumer preferences. For example, South Africa is the most structured and mature market, with an established creative industry and a strong talent pool in film, animation, design, gaming and music3. Nigeria is the largest and most populous market, with a vibrant film industry known as Nollywood, which produces more movies than Hollywood or Bollywood4. Kenya is a regional hub for innovation and entrepreneurship, with a growing digital media ecosystem that includes mobile money platforms, e-commerce sites, and social media influencers4.
Some of the common challenges facing Africa’s E&M market include low internet penetration and affordability, lack of reliable power supply and broadband infrastructure, piracy and intellectual property rights issues, regulatory uncertainty and censorship, and competition from global players such as Netflix, Spotify, and YouTube354. To overcome these challenges, African E&M players need to invest in local content production and distribution, leverage mobile technology and data analytics, partner with telcos and other stakeholders, and adapt to changing consumer behaviors and preferences26.
Africa is indeed the next frontier in the E&M market, but it is not a single market. It is a diverse and dynamic continent that offers both opportunities and challenges for local and global players. To succeed in this market, E&M players need to understand the nuances of each sub-region and cater to the needs and tastes of the African audience. The playbook wherein strategies that worked in other regions are transplanted without modification will not work in this non-homogenous market.
For future-thinking producers looking to explore the animation subsector of the Nigerian market, Nigeria is open for business! Partnering with Quadron Studios in these exploratory efforts is starting on a sure footing with a collaborator who, through years of experience crafting within Africa's most populous industry has developed a firm finger on the pulse of the ecosystem, and clear insights into where its going.