MEDIA INDUSTRY OVERVIEW
According to PwC Global Entertainment and Media Outlook for 2020-2024, Nigeria’s media and entertainment industry is one of the fastest growing creative industries in the world. It has the potential to become the country’s greatest export, with projected annual growth rate of 8.6% and a compound annual growth rate (CAGR) of 19.3% from 2018-2023. PwC indicates that in 2021, Nigeria’s film industry contributed 2.3% and about 239 billion naira ($660 million) to GDP and projects that the industry will increase its export revenue earnings to over $1 billion. The motion picture and music recording industry exceeded 2020 projected $806 million revenue contributing about 730 billion naira ($1.8 billion) to the country’s GDP.
The country’s television and video market grew by 7.49% to $806 million in 2020, up from $732 million in 2018. The industry is projected to earn about $900 million in 2023. The market is driven by subscription revenue, which accounted for 72.26% of total revenue in 2018. TV advertising accounts for 21.31% of total revenue while physical home videos account for 5.33%. Subscription-based movie streaming are also very popular in Nigeria attracting players like Netflix, Iroko TV, and Startimes. Although Netflix subscription has long been available in Nigeria, they made their official debut in Nigeria in February 2020, joining several major distributors of filmed content in Nigeria.
Nigeria produces around 2,500 films annually and is projected to record total cinema revenue of $22 million in 2021, rising at 8.6% CAGR. Total music revenue is estimated to rise to $73 million at 13.4% CAGR in 2021. As of 2021, the local industry employs about a million people and generates over $8 billion for the economy. According to an IMF reports, the industry is projected to generate an estimated revenue of $10.8 billion by 2023 and account for 1.4% of GDP.
A new study by Research and Markets, shows that Nigeria will contribute about 10 million (21.2%) pay television subscribers to Africa’s 47.26 million pay TV base by 2025. The report indicates that in 2020, Nigeria overtook South Africa in pay TV subscription as the country currently has over 6.9 million pay Tv households as of 2021. It is projected to grow to upwards of 7.4 million by 2023. The Nigerian Minister of Information and Culture, Lai Mohammed, has projected that the Nigerian music industry is set to generate $86 million (3.09 billion naira) in revenue in 2021, making it the region’s largest. Digital music consumption contributed the largest portion of the revenue. With this industrial indices and our business experience, we believe, we can take advantage of the gap in the markets.
OPPORTUNITIES IN THE MARKET
Significant opportunities for NASTV Africa in the media sector include:
• Establishment of training facilities which engage in animations, visual effects, and other technical skills development institutions.
• Establishment of consultancy services for expanding reach and improving penetration of content and digitization of media.
• Establishment of a distribution and rental business for new technology useful for production by industry participants.
• Video streaming platform with exportable content.
• Mergers and acquisitions of national players who require financial assistance and other resources to leverage growth.
• Collaboration with global film producers for film festivals and media tourism.
