Audit report values Kenya’s entertainment and media industry at Sh191 billion

Just A Band’s Blinky Bill performs during a Blankets and Wine concert earlier this month in Nairobi. Consumer demand for live concerts is expected to continue growing over the next five years. [PHOTO: DAVID GICHURU/STANDARD]

NAIROBI: The value of Kenya’s entertainment and media industry last year hit Sh191 billion, PricewaterhouseCoopers (PwC) has said in a report released last week.

This is a 13.3 per cent increase from 2013, when the sector was valued at Sh155 billion. The audit firm added that indications are that the industry will be worth Sh350 billion by 2019.

In its report, Entertainment and Media Outlook: 2015 – 2019 (South Africa, Nigeria, Kenya), projections for Kenya’s entertainment are positive, with the sector expected to be a new frontier for job creation.

Growth is expected to be driven by increased access to ICT services, with the Internet set to be the largest driver of growth, followed by television and radio.

TV advertising is projected to overtake radio ads in 2016, with Internet advertising seeing the fastest growth at a compound annual growth rate of 16.8 per cent.

Traditional media, such as TV, radio and newspapers, will continue to be the first choice for most Kenyan advertisers in the foreseeable future, added PwC.

The report, however, calls on media firms to do three things to succeed: innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile and video at the centre of consumer experiences.

According to Vicki Myburgh, the entertainment and media leader for PwC Southern Africa, consumers are choosing offerings that combine a personalised user experience with an intuitive interface and easy access.

“This includes shared physical experiences, like cinema and live concerts, which appear re-energised by digital and social media.”

She added that this year’s outlook shows consumer demand for entertainment and media experiences will continue to grow, but towards video and mobile.

“Increasingly, though, it is clear that consumers see no significant divide between digital and traditional media — what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content.”

The report presents annual historical data for 2010–2014, and provides annual forecasts for 2015–2019 in 11 entertainment and media segments for South Africa, Nigeria and Kenya.

Nigeria’s entertainment and media market grew by 19.3 per cent in 2014 to reach Sh424 billion. By 2019, the market will be more than twice as big, with estimated total revenues of Sh848 billion. In South Africa, the industry is expected to grow from Sh896 billion in 2014 to Sh1.4 trillion in 2019, with digital spending fuelling the increase.

The media and entertainment industry includes the Internet, TV, radio, filmed entertainment, video games, newspaper, magazine and book publishing, recorded music, and advertising.