South African entertainment and media outlook: 2013 – 2017

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Each year, PwC’s team of entertainment and media experts generates unbiased in-depth forecasts for 12 industry segments. The fourth annual edition of PwC’s South African entertainment and media outlook (the Outlook), covering the forecast period 2013-2017, combines deep knowledge of the local market with a truly global perspective – a powerful tool for understanding critical business issues.

Click here to download the full publication (pdf)

Topics include:

  • Internet
  • Television
  • Filmed entertainment
  • Radio
  • Music
  • Consumer magazine publishing
  • Newspaper publishing
  • Consumer and educational book publishing
  • Business-to-business publishing
  • Out-of-home advertising
  • Video games
  • Sports

Internet

  • Consumer spending on Internet access in South Africa will reach approximately R59.6 billion by 2017, up from R19.8 billion in 2012, a CAGR of 24.7%.
  • The South African Internet market is dominated by the mobile segment due to increased investment in cellular coverage by mobile operators and decreasing tariffs. Internet access via mobile devices comprised 89% of the Internet access market (mobile Internet subscribers plus fixed broadband households) and 81% of its revenues in 2012.

  • Within the home broadband market, which will grow its subscriber base by a CAGR of 8.6% over the next five years, asymmetric digital subscriber line (ADSL) will be the dominant technology due to demand for higher speeds and its relatively wide coverage.
  • All South Africa’s major operators have launched Long-Term Evolution (LTE) technology, but coverage remains limited. Vodacom and MTN launched LTE during the latter part of 2012, setting the trend with the primary focus on business and wealthy residential areas before making the technology available to the mass market and expanding the coverage area. The adoption of LTE services across all segments will help to ensure the continued growth of mobile broadband adoption in South Africa.
  • The South African Internet advertising market is forecast to generate revenues of R3.7 billion in 2017, up from R1.2 billion in 2012, a CAGR of 25.4%.
  • Search is set to remain the primary online advertising format in South Africa, although its share of online advertising will decline slightly over the forecast period from 44% to 41%. Search will grow at a CAGR of 23.9% over the forecast period, driven principally by an increase in Internet penetration.
  • Online display advertising is being driven on by the ever-increasing number of Internet, and in particular Facebook, users in South Africa. Despite the fact that mobile will cut into display’s share, display will still remain the second-largest Internet advertising segment throughout the forecast period, with the segment set to grow at a CAGR of 22.6%, reaching R1 billion in 2017.
  • Classifieds will continue to increase over the forecast period, growing from R112 million to an estimated R209 million between 2012 and 2017. Classifieds will represent the slowest-growing online advertising format over the forecast period, primarily due to some consumers’ loyalty to more traditional print formats.
  • Mobile advertising is set to grow at a notable CAGR of 37.8% over the forecast period, growing from R189 million in 2012 to R938 million in 2017. This growth will be driven by the increased penetration of LTE-compatible smartphones and more affordable feature phones that provide access to the mobile Internet.

Blog Post by Sonja

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