Most of the heavy analysis of music markets focuses on North America, Europe, and Asia. PricewaterhouseCoopers has given us new insights on the industry in Africa with a new entertainment and media outlook through 2017 for South Africa, Kenya, and Nigeria. The report covers the radio and music sectors in those countries.
South Africa’s radio market generated revenue of more than 3.6 billion rand (~ $290 million) in 2012. The sector is projected to grow at a compound annual growth rate of 8.8% to reach an estimated 5.5 billion rand in 2017. Total audience for radio is more than 31 million listeners, and about 5% of them listen online. About 28% of listeners are tuning in on their phones. According to PwC’s analysis, traditional broadcasters do not see Internet radio as a rival. That could be because many terrestrial radio stations have online listening options that are attractive to advertisers. Broadband access is also still limited, which means online radio advertisers are mostly reaching a wealthy audience.
On the music side, South Africa’s market was valued as 2.2 billion in 2012 and it is expected to grow only at 0.4% to 2017. Physical sales are projected to decline at a 6.5% rate to 2017, while digital music spending will likely rise at 7.8%. But the digital percentage is still small, only projected to be 14% of South Africa’s music retail sales in 2017. Digital revenues include subscription services, ad-supported streaming, master ring tones, and ringback tones.
Nigeria and Kenya are still developing their radio markets with 2012 revenues of 705 million rand ($86 million) and 2.25 billion rand ($274 million), respectively. Kenya’s music market generated 163 million rand ($19.8 million) in 2012, and digital music spent is expected to exceed physical sales this year. The Nigerian music market revenue was 421 million rand ($51.3 million) in 2012. Projected revenue for 2017 is 441 million rand, with digital expected to account for 66.6%.