South Africa’s entertainment and media industry is forecast to grow 10.9 per cent over the next five years, according to PwC’s fourth annual South African Entertainment and Media Outlook report.
Newspaper advertising is expected to grow 6.2 per cent a year to R10.1-billion by 2017, while online advertising will grow 27 per cent a year, but still only be worth R506-million by that date — only 5 per cent of newspaper revenues.
“The South African market bucks the trend seen in other nations,” the PwC report says. “Its revenues are increasing even while the market evolves to digitised formats … the threat from digital is now correctly seen as an opportunity for existing providers, which have the content and distribution channels to engage large audiences,” it concludes.
Vicky Myburgh, PwC’s entertainment and media industries leader for southern Africa, said that while most of the growth would be from digital technology, the traditional non-digital media would still dominate the industry over the next five years.
According to the survey, South Africa is growing faster than the global entertainment and media market, which is expanding at 5.6 per cent a year – with internet access is the major force behind the growth.
In a global context, internet advertising is set to be worth over $185-billion in 2017, equal to 31 per cent of the world’s total advertising market. This would make it the second-largest advertising medium after television.