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Game on for SA's mobile gaming

Johannesburg - “The E&M industry in South Africa is well placed to benefit from the economic growth the country will experience in the next five years,” said Vicki Myburgh, Entertainment and Media Industry Leader at PWC.

“While many mature countries – such as those in Western Europe – are seeing low levels of growth, the outlook for South Africa is more positive.”

Myburgh was talking at the release of PwC’s South African Entertainment and Media (E&M) Outlook: 2013-2017.

With more consumers becoming connected (typically through their mobile devices) and with more disposable income available, the opportunities for those selling products and services both digital and physical will be significant.

“But E&M businesses must continue to raise their games in agility to change in direct response to consumers’ expectation, while understanding that digital innovation become the new license to operate,” said Mybugh.

South Africa’s entertainment and media market (E&M) is set to grow at a compound annual growth rate (CAGR) of 10.9% in the next five years, one of the highest in the world. The E&M market is expected to generate overall revenue of R175bn in 2017.

Watch the interview with Vicki Myburgh


Revenue from Internet access is also expected to enjoy strong growth, increasing from R19.8bn in 2012 to about R59.6bn in 2017, at a CAGR of 24.7%.

Mobile Internet access will form the bulk of this growth (if mobile Internet access is removed, then the CAGR falls to 5.9%) and growing mobile Internet penetration will help to drive growth in other segments.

The fourth edition of PwC’s South African Entertainment and Media Outlook includes historical and forecast data on the Internet, television, filmed entertainment, radio, recorded music, consumer magazine publishing, newspaper publishing, consumer and educational book publishing, business-to-business publishing, out-of-home advertising, video games, and sports.

It gives a detailed breakdown of these sectors.

The slowest growing segment in the E&M industry will be consumer and educational books.

 “Comparatively low literacy levels in the country and the fact that books don’t cater for multiple languages continue to act as a barrier to further growth in this segment,” said Myburgh.

“Magazines and newspapers sell at a much lower cost and are therefore more likely to be read.

The music segment will also continue to struggle, with sales dropping quickly, but not yet being replaced by digital sales.
The Outlook also predicts fast growth for the video games segment - driven largely by mobile gaming.

Revenue flow from the film industry is  also expected to grow in the wake of increased Internet access, with electronic home video (including box office) reaching R1 544m in 2017 and accounting for 66% of the home video market.

Radio is also expected to see strong growth in advertising revenue streams, rising from R3.6bn in 2012 to R5.5bn in 2017.

“As a significant proportion of South Africans lack Internet access, the radio remains one of the few advertising platforms capable of reaching a large audience,” said associate director Charles Stuart.

Watch the interview with Charles Stuart

 - Fin24

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