NAIROBI, Kenya, Sept 21 – The Kenyan Entertainment and Media Industry (E&M) was worth Sh216.9 billion in 2016, up 13.6 percent in 2015.
This is according to PwC’s Entertainment and Media Outlook report 2017.
The report forecasts revenue to grow at an 8.5 percent Compound Annual Growth Rate over the next five years, hitting the Sh309.9 billion in 2020 and totaling to Sh330.5 billion in 2021.
“Amid shifting consumer preferences, rapid advances in technology and ongoing disruption to business models, the new strategic imperative for E&M companies is to turn customers into fans – by innovating to create the most compelling, engaging and intuitive user experiences,” it says.
The growth will be backed by internet access, which is singled out as the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates by 2021.
“The internet sector will also be the first sub-segment in which revenues will hit US$1 billion, which it will reach in 2020,” reads the report.
Mobile internet access is the main revenue driver, as smartphone adoption increases in popularity. Over the forecast period, high-speed mobile internet connections are expected to rise to 84.9 percent Compound Annual Growth Rate, while subscriber numbers are set to double over the next five years reaching 33 million in 2021.
“To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capacities to engage with consumers.”
The outlook analyses consumer and advertising spending across five countries that include Kenya, Nigeria, South Africa, Ghana and Tanzania.