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MEDIA AND ENTERTAINMENT

Nigeria’s media and entertainment industry, “Nollywood,” originated in 1992. It is currently the second most prolific film industry in the world. It is a globally recognized brand for practitioners in film, including script writing, directing, sound, acting, cinematography, make-up, and editing. The industry is located throughout several major production centers like Lagos, Onitsha, Enugu, Asaba, and Abuja.  Nollywood was valued at $3.6 billion in 2016 and is projected to be worth $6.4 billion by 2021. The music sector also recorded significant growth over the years. 

According to PwC Global Entertainment and Media Outlook for 2020-2024, Nigeria’s media and entertainment industry is one of the fastest growing creative industries in the world.  It has the potential to become the country’s greatest export, with projected annual growth rate of 8.6% and a compound annual growth rate (CAGR) of 19.3% from 2018-2023. PwC indicates that in 2021, Nigeria’s film industry contributed 2.3% and about 239 billion naira ($660 million) to GDP and projects that the industry will increase its export revenue earnings to over $1 billion. The motion picture and music recording industry exceeded 2020 projected $806 million revenue contributing about 730 billion naira ($1.8 billion) to the country’s GDP.

The country’s television and video market grew by 7.49% to $806 million in 2020, up from $732 million in 2018. The industry is projected to earn about $900 million in 2023. The market is driven by subscription revenue, which accounted for 72.26% of total revenue in 2018. TV advertising accounts for 21.31% of total revenue while physical home videos account for 5.33%. Subscription-based movie streaming are also very popular in Nigeria attracting players like Netflix, Iroko TV, and Startimes.  Although Netflix subscription has long been available in Nigeria, they made their official debut in Nigeria in February 2020, joining several major distributors of filmed content in Nigeria.

Nigeria produces around 2,500 films annually and is projected to record total cinema revenue of $22 million in 2021, rising at 8.6% CAGR.  Total music revenue is estimated to rise to $73 million at 13.4% CAGR in 2021. As of 2021, the local industry employs about a million people and generates over $8 billion for the economy. According to an IMF reports, the industry is projected to generate an estimated revenue of $10.8 billion by 2023 and account for 1.4% of GDP.

A new study by Research and Markets, shows that Nigeria will contribute about 10 million (21.2%) pay television subscribers to Africa’s 47.26 million pay TV base by 2025. The report indicates that in 2020, Nigeria overtook South Africa in pay TV subscription as the country currently has over 6.9 million pay Tv households as of 2021.  It is projected to grow to upwards of 7.4 million by 2023. The Nigerian Minister of Information and Culture, Lai Mohammed, has projected that the Nigerian music industry is set to generate $86 million (3.09 billion naira) in revenue in 2021, making it the region’s largest.  Digital music consumption contributed the largest portion of the revenue.

The music sector of Nigeria’s entertainment industry also recorded significant growth over the years. Stakeholders include artists, musicians, producers, promoters, managers, distributors, and marketers. In the past six years, the growing numbers of new production studios and artists enabled a more vibrant and self-sustaining industry. The investments have aided production of world-class quality music.  In this environment, Nigerian musicians have developed a vast spectrum of music genres.

The industry has won prestigious awards with artists like Wizkid and Burnaboy claiming Grammy awards hence attracting more and more investments from several sources such as Spotify, the global leader in music streaming is also moving into the Nigerian market as part of a broader global expansion.

COVID-19 led to the shutdown of public shows and concerts.  There was an increase in internet music subscribers (154.3 million as of December 2020), digital song sales, and online streaming. Much of the music industry’s revenue potential, particularly from recorded music, remains untapped. Importantly, music streaming, which accounts for more than half the revenue of the global music industry, shows comparatively low penetration rates in Nigeria.

prelliotaglobalconcept

TV Presenter/ Content Writer

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