Nigeria has one of the fastest-growing markets in the entertainment and media industry, says PricewaterhouseCoopers (PwC) in its 2016 to 2020 Entertainment and Media Outlook report for South Africa, Nigeria and Kenya.
The report, released three weeks ago, provides performance figures in the entertainment industry from the first half of the decade (2011 to 2015) and forecasts performance in the same areas for the next four years.
According to the report, the Nigerian music industry was worth $40 million in 2011 and $47m last year. By 2020 this figure is expected to reach $86m.
PwC says the Nigerian music industry is benefiting significantly from mobile music revenue because of its “piracy-proof” nature.
“Nigeria’s total music revenue is dependent on ringtones and ringback tones, with the legitimate music sector being small otherwise,” says the report.
The report notes that digital platforms will account for over 90 percent of Nigeria’s recorded music sales in 2020.
The report focuses on 11 categories, namely internet, television, filmed entertainment, video games, business-to-business publishing, newspaper publishing, recorded music, magazine publishing, book publishing, out-of-home advertising and radio.
All these categories will show marked growth in Nigeria and the other countries covered over the next four years. This growth, according to the report, will be propelled by improving internet access, especially in Nigeria.
Overall, Nigeria emerges as the country with the highest reliance on internet for revenue.
“Although South Africa’s market is characterised by a tendency to be overly weighted to internet access with that segment’s share approaching 40 percent by 2020, this is nothing compared to the stranglehold the internet has over Nigeria’s entertainment and media industry revenue,” the report says.
“In 2015, internet access revenue accounted for just under 50 percent of the $3.8 billion figure (across the whole entertainment and media industry) and, in 2020, that proportion will rise to 61 percent.”
The report by PwC ties in with announcements made by telecoms company MTN.
Last year, the company was the “largest distributor of music in Nigeria”, and this year it has announced revenue of $70m from selling music across Africa.
With a predicted annual growth rate of 11 percent across the 11 categories, Nigeria will grow at a pace that “globally, only Indonesia (13.2 percent) can exceed”.
Nigeria and Indonesia are among the 10 most populous countries in the world, and as such have a considerable market for entertainment products.
The increased growth that will be seen throughout this decade coincides with the rise in popularity of Nigerian music globally as the country continues to export its talent across the Atlantic.
Weeks ago, a number of Nigerian artists were among an all star line-up at the One Africa Music Fest in the US. Nigerian popstars Wizkid and Davido have international deals with Sony, and Tiwa Savage has signed a deal with Jay Z’s Roc Nation.
Early this year, Sony opened a West African office in Lagos. – Music in Africa
Wizkid signs up with Sony
Over the past few months, reports of Wizkid signing to the global corporation Sony have spread across Nigerian blogs and social media.
Recent reports, however, indicate that the Ojuelegba singer has actually been in talks with the global company.
“Afrobeats hits mainstream as Sony eyes Wizkid,” declared a headline by theFinancial Times.
Says the reputable publication: “With Nigerian singer Wizkid tipped to sign with Sony Music-owned RCA Records – becoming the third Nigerian artist to sign with Sony this year – and international stars lacing the sounds of the Afrobeats genre through chart-topping hits, the country’s vibrant music scene is going global.”
According to the Financial Times, Wizkid had been in talks with Universal but has signed with Sony instead. However, Sony declined to comment.
As Nigerian music becomes more recognised around the world, global firms are vying for the signatures of its artists.
So far, Sony music has snapped up the two most prized Nigerian artists: Davido and now Wizkid.
Perhaps a collaborative album by both artists, as hinted at by Davido, is a possibility.
According to details circulating on social media, Wizkid will also get a distribution deal with RCA, which only a few months ago signed Davido.
RCA already has a direct deal with the US-based Nige