we bring you PwC’s breakdown of the sectors future. Here’s PwC’s “five shifts to shape the future of Africa’s entertainment and media industry”, based on its Entertainment and media outlook: 2016 – 2020 report (South Africa – Nigeria – Kenya) .
PwC’s analysis of global media markets reveals that younger consumers are the new primary drivers of global growth. The study of the world’s 10 youngest and 10 oldest markets in demographic terms showed that entertainment and media spending in the 10 youngest markets is growing three times as quickly as in the 10 oldest markets.
It’s easy to assume that content is becoming more globally homogeneous. According to PwC, content is being redefined by forces of globalization and localization simultaneously. While much of the sector is becoming increasingly global, content tastes and cultures remain steadfastly local.
The bundle is far from dead. Video and cable incumbents are fighting extinction by providing content on an integrated omnichannel basis (on TV, laptop, tablet, and smartphone). PwC believes that as take-up of these new-style bundles grow, “the bulk of digital OTT mass-market services will gradually be reabsorbed into aggregated offerings that will echo the traditional analogue-style bundle, but that will be more flexibly priced and available on a full range of devices.” This will take the competitive battle to a new level, as cable, technology, and telecom players fight over gaining access to distribution.
Disruption is pushing markets to develop in different ways. Generally, entertainment and media companies had a single set of expectations about developed markets, i.e. slow growth, low regulation, easier to access. However, “opportunity” economies (even within the same region) can display significantly varied growth patterns.
Hybrid content and technology companies are becoming more popular. The growth of digitisation is “breaking up existing relationships; pushing large, generalist entities to give way to smaller specialists; and allowing smaller, nimble competitors to beat out incumbents.”