Femme StaffThe Kenyan entertainment and media scene is set for exponential growth, according to a new report by PwC. The Africa Entertainment and Media Outlook predicts the industry will be worth a staggering 4.8 billion US dollars by 2028.
PwC attributes this surge to Kenya’s young population, increasing smartphone use, and improved internet access, with the region identified as the world’s fastest-growing internet advertising market. The report projects internet advertising revenue to reach 365 million dollars by 2028. With more Kenyans online via mobile, mobile gaming and streaming services are also poised for take-off.
Traditional media like radio, TV and newspapers are still relevant, but their growth pales in comparison to digital.
While traditional TV remains important for major events, the report emphasizes a digital future. Furthermore, AI is expected to revolutionize the sector, leveraging AI-generated content and advanced user analytics.
Key Highlights:
Kenya’s Entertainment and Media sector is poised for robust growth, with total revenue projected to reach US$4.8 billion by 2028, a 5.2% CAGR from 2023. This growth is driven by a young population, increasing smartphone penetration, and improving connectivity.
• Traditional TV: While facing pressure from streaming platforms, traditional TV advertising revenue is expected to continue growing at a 3.2% CAGR, reaching US$396 million by 2028. This suggests that linear TV still holds relevance for “appointment TV” and major events.
• Print media: The print media segment (newspapers, consumer magazines, and books) is projected to grow at a modest 1.6% CAGR, reaching US$130 million by 2028. This slow growth reflects global trends, with print facing challenges due to its reliance on physical distribution and the rise of digital alternatives.
• It’s important to note that while traditional media segments are still growing, their growth rates are significantly lower compared to digital segments like internet advertising and OTT. This highlights the ongoing shift towards digital consumption and advertising in Kenya.
• GenAI’s impact: The report emphasizes the potential of generative AI to disrupt the media and entertainment industry. While the report doesn’t offer Kenya-specific data on GenAI, its transformative potential in content creation, user analytics, and production processes is relevant to the Kenyan market as well. The African Union’s endorsement of the Continental AI Strategy, along with increased Google searches for “AI” and the popularity of ChatGPT in Kenya, indicate growing interest and adoption of AI technologies.
• Connected TV (CTV) advertising: Although still nascent in Africa, CTV advertising presents a significant growth opportunity. While the report focuses on South Africa’s CTV market, the trend is relevant for Kenya as internet connectivity and smart TV adoption increase.
• Digital advertising dominance: Digital advertising is projected to take a larger share of the advertising market in Kenya, overtaking traditional formats like radio and broadcast TV by 2026. This shift towards digital aligns with global trends and presents opportunities for targeted and personalized advertising campaigns. Programmatic DOOH (Digital Out-of-Home) advertising is also expanding in Kenya, offering new avenues for reaching consumers.
• Internet advertising: Kenya boasts the world’s fastest-growing internet advertising market, projected to expand at a 17.4% CAGR, reaching US$365 million by 2028.
• Mobile-first connectivity: With low fixed broadband penetration, mobile services are the primary driver of E&M growth. 4G subscriptions are set to overtake 3G by the end of 2024, paving the way for further growth in mobile-based services.
• OTT (Over-the-top) services: The Kenyan OTT market is experiencing rapid growth, projected at a 10.9% CAGR, reaching US$16 million in 2028.
• Gaming: While traditional gaming currently leads, mobile gaming is expected to catch up by 2028, driven by increased smartphone accessibility.
• Live music: Despite challenges, Kenya’s live music scene is recovering post-COVID, with 2023 recording the highest everticket sales revenue.
• Expert opinion from Laolu Akindele, Technology, Media, and Telecommunications Leader, PwC Kenya: “Kenya’s E&M industry is poised for remarkable growth, with the world’s fastest-growing internet advertising market and a leading position in mobile game spending driven by rising smartphone accessibility.”
• While Kenya’s market remains smaller than South Africa and Nigeria, its faster growth trajectory presents significant opportunities for investors and businesses. The report highlights the importance of digital transformation and leveraging social media and mobile platforms to engage Kenya’s young demographic.
Read the full report here.
