PwC predicts 12.1 percent growth for media in five years

According to the latest report by global accounting firm, Price Water Copper (PWC), Nigeria would be the world’s fastest-growing Entertainment and Media (E&M) market over the coming five years with a 12.1 per cent Compound Annual Growth Rate (CAGR), while the slowest-growing will be Japan, put at 1.7 per cent CAGR. PWC used a powerful online tool that provides deep knowledge and actionable insights about the trends that are shaping the E&M industry.

Many see this as a ray of hope for the country considering recently developments in other sectors. Those in the entertainment industry are however not surprised by the report, saying it is expected. The report says the most rapid growth rates in E&M revenues over the coming five years will be in less-developed markets and economies, where entertainment and media spending on a per capita basis is generally quite low.

According to report, “While consumers in mature markets such as North America and Europe and wealthier Asia-Pacific markets spend a lot – more than US$500 per capita annually on entertainment and media – growth rates are relatively slow in these areas. In contrast, less developed economies feature much lower per capita spending and faster growth albeit from a very low base – less than US$50 a year in many cases.”

It also noted that dramatic shifts are underway in how entertainment and media companies compete and generate value, as the quality of the experience they deliver to consumers becomes their primary basis for strategic differentiation and revenue growth.

While reacting to the prediction, Chief Executive Officer, ACC Broadcast Multimedia Limited and former Managing Director, DAARSat at DAAR Communications Plc, Dr. Don Pedro, noted that the entertainment industry is the only part of the country that would always experience growth.

“The critical enablers are already embedded in the sector,” he noted. “The average Nigerian is the one that either originates, encourages or consumes matters that serve entertainment content creation. We are, by nature a happy, curious people.”He commended former President Goodluck Jonathan-led administration for placing priority on the entertainment industry by providing trainings and conducive environment for it to thrive, adding, “It created a special fund by the Bank of Industry (BoI) to directly intervene in the areas of production and procurement and this is evidently seen in the quality of our production today, and the level of piracy has dropped.”

Recall that global newspaper circulation revenue overtook global advertising revenue in 2016. While newspaper circulation revenue has been on a downward trajectory since 2015, publishers have had the useful lever of cover price rises to partly offset the rapid fall in units.However, according to the report, “the year-on-year falls in newspaper advertising revenue have been more pronounced, with advertisers deserting print editions in large numbers, and publishers increasingly being squeezed out of the digital ad space by Google and Facebook. The upshot is a historic shift in the dominant revenue streams, as newspaper circulation eclipses advertising. By 2021, global total newspaper circulation revenue will account for 54.0 per cent of total newspaper revenue.”

Technology, Information, Communications and Entertainment (TICE) Industry Leader at PwC Nigeria, Femi Osinubi, said, “A raft of changes in technology, user behaviour and business models have opened up a gap between how consumers want to experience and pay for E&M offerings, and how companies produce and distribute them.“The right user experience bridges this gap. To deliver it, companies must pursue two related strategies. First, build businesses and brands anchored by active, high-value communities of fans, united by shared passions, values, and interests. And second, capitalize on emerging technologies to delight users in new ways and provide superior user experiences.”

Chief Creative Officer of X3M Ideas, Steve Bababeko, also lent his voice to the report, saying that the critical enabler powering the sector is the sheer creativity and ingenuity of the Nigerian people.According to him, “Take the music or movie industry for example. These were built by private individuals, who saw an oasis in the desert and have continued to make heavy investments.” 

On whether the lack of technology would hinder the E&M growth, he said, “When you have valuable and exciting content, the technology to drive it will appear. High-grade technology can’t drive unwanted content. With digital distribution now Nigerian music is set for world domination. Now Nigerian artistes are selling out massive venues worldwide.”

Speaking further on the projection and the possibility of E&M media markets advancing while others are slowing down, Babaeko noted, “It underscores the point that Nigeria’s most valuable resource is not oil but the people. The resilience and creativity of our people constantly fuels the entertainment and media industry. With little or no infrastructural support look out how we’ve dominated the continent and the world. Imagine what would happen if the government invests in infrastructure, by extension stop the massive brain-drain that’s currently happening.”

Babaeko also said government must step up to the plate and ensure enforcement of laws protecting intellectual property (IP) owners.Publisher of Realnews online, Maureen Chigbo, said she was not exactly sure about the growth of the media (press and broadcast) industry given the present state of the economy and ever-shrinking advertising revenues.

“But if at all media will be the fastest growing industry, it will be driven by technology and innovation,” she said. “The testimony to this is the fact that digital media, online publishing, is mushrooming fast, providing employment for many people, who otherwise would be out of work. More advertising agencies are beginning to realise the reach of digital media and so more advert funds are being channelled to it unlike before.”Chigbo then urged government to provide conducive environment for business to thrive by coming up with the right polices and adhering to international best practices.

Chairman, Copyright Society of Nigeria (COSON) and author of Copyright & the New Millionaires, Tony Okoroji, said the growth in the sector had long been predicted, adding, “The world today feeds on content that captures the imagination of people. The proliferation of smartphones has created a new economy, an economy driven by intellectual property.
 
“In Nigeria, we have unlimited talent to make music that the world wants, create attractive movies, write great literature, produce rib-cracking comedy and provide information. In this area, Nigeria has significant comparative advantage. Managing this advantage is our challenge. The production of content and the provision of the media to deliver the contents to people where and when they require it have become significant drivers of major economies around the world today.”