By Bamigbola Olawunmi Jennifer
Entertainment has long served as a means of escapism, offering a reprieve from life’s challenges and an avenue for narrative influence. Historically, Nigeria’s entertainment consumption transitioned from Nollywood films on cassette tapes and VHS in the late 1980s to DVDs by 2008. With the rise of satellite TV, many Nigerians shifted their entertainment sources, but this too has been overtaken by online entertainment options in recent years. This evolution underscores how technology has expanded user control and choices.
In recent years, streaming media has become increasingly popular, driven by advancements in technology that have made it more accessible and diverse. The COVID-19 pandemic accelerated changes in consumer behavior, pushing the media industry towards more digital, remote, and home-centric models. Theatres and studios faced significant challenges due to pandemic restrictions, with many productions delayed.
PwC’s Global Entertainment & Media Outlook 2020-2024 highlights how digitalization has reshaped the industry, emphasizing remote and virtual consumption. Traditional satellite-based pay TV models are losing ground to streaming services, prompting companies to adapt by leveraging the power of fan engagement.
The African entertainment and media industry has also experienced significant growth. PwC’s Entertainment & Media Outlook for 2019-2023 projects substantial revenue increases, with South Africa’s E&M revenue expected to reach R170.5 billion by 2023 and Nigeria’s revenue growing at a 19.3% compound annual growth rate to $10.8 billion. Despite internet access dominating revenue, there remains room for growth.
The video on demand (VOD) industry is booming, with increasing numbers of viewers opting for online videos at their convenience. Conviva reported a 155% year-over-year increase in VOD viewing in 2019. Digital TV Research indicates that 3.9 million Africans use video streaming platforms, a small percentage of the population. In Nigeria, VOD services are preferred over traditional TV due to unreliable electricity.
Streaming services like Netflix, Showmax, YouTube, Apple TV+, iROKOtv, EbonyLife TV, and Amazon Prime Video have gained popularity, offering extensive content libraries. However, challenges remain, including high subscription fees and expensive internet costs. Africa’s internet prices are among the highest globally, and connectivity issues persist. Additionally, consumer fickleness poses a risk, as some subscribers may cancel services unexpectedly.
Despite these challenges, the shift to streaming and direct-to-consumer distribution offers new opportunities. Service providers must innovate and adapt to compete with international platforms and build a robust African streaming landscape.