Nigeria’s Media Revenue To Hit $5.8bn By 2029 — PwC

…Streaming, Gaming To Overtake TV

…Says Tariffs, Inflation Threaten Growth

PricewaterhouseCoopers (PwC) has projected a steady digital-driven expansion for Africa’s entertainment and media (E&M) industry between 2025 and 2029, as Nigeria, Kenya and South Africa continue to outperform global benchmarks despite economic and infrastructure challenges.

A report titled “Africa Entertainment & Media Outlook 2025–2029”, released by PwC Africa, forecasts sustained growth in the continent’s digital ecosystem, led by internet advertising, gaming, and over-the-top (OTT) streaming services.

“Africa’s E&M future promises a dynamic convergence of technology, creativity and market growth which positions the continent as an increasingly influential player in the global media landscape,” PwC stated.

The report revealed that Nigeria recorded the fastest growth in Africa’s E&M sector in 2024 with an 11.2 per cent increase, followed by Kenya’s 7.1 per cent and South Africa’s 6.2 per cent.

PwC projects Nigeria’s compound annual growth rate (CAGR) at 7.2 per cent through 2029, with Kenya at 5.2 per cent and South Africa at 3.5 per cent.

“Nigeria remains the fastest-growing E&M market in Africa, the report said, noting that the country’s total entertainment and media revenue is expected to rise from $4.1bn in 2024 to about $5.8bn by 2029, representing a 7.2 per cent compound annual growth rate

The report attributes Nigeria’s performance to its youthful population, expanding mobile internet access, and increasing local content creation.

“Nigeria’s E&M growth is driven by a predominantly young population and rapid digital innovation that’s reshaping how content is created, consumed and monetised,” said Udochi Muogilim, Technology, Media and Telecommunications Leader at PwC Nigeria.

It also said internet connectivity remains the biggest expense in Africa’s digital economy, accounting for 81 per cent of total E&M spending in Nigeria, 76 per cent in Kenya, and 62 per cent in South Africa—compared to 40 per cent globally.

The report noted that Nigeria currently has over 107 million internet users, while Kenya’s mobile connections exceed its population.

In South Africa, video streaming accounts for 76 per cent of total data usage, driven by TikTok, Instagram and Netflix.

PwC noted that declining data costs will eventually “free up more spend for content and advertising,” allowing Africa’s digital market to expand further.

PWC further disclosed that digital advertising is emerging as Africa’s most dominant revenue source.

“Nigeria is expected to reach 84 per cent digital ad spend by 2029, surpassing global averages” while “South Africa and Kenya will reach 74 per cent and 64 per cent respectively,” it added,

Kenya’s internet advertising market leads globally with a 16 per cent CAGR, while retail display and paid search remain the fastest-growing segments in Nigeria and South Africa.

“Globally, advertising revenue will be 80 per cent digital by 2029, a figure exceeded by Nigeria,” PwC disclosed.

PWC said OTT streaming services are gaining ground, with South Africa projected to add 1.4 million new subscribers by 2029.

OTT revenues are forecast to grow at 6 per cent in South Africa, 8.3 per cent in Nigeria, and 8.5 per cent in Kenya.

It added that Ad-supported streaming models are also helping platforms reach low-income users.

For gaming and esports, PWC said Nigeria’s gaming sector leads with a 7.4 per cent CAGR, followed by Kenya at 6.9 per cent and South Africa at 4.6 per cent. PwC said,

“Gaming and esports are on track to overtake traditional television globally by 2029, with Nigeria reaching that milestone in 2028.”

The report also shows that live entertainment—especially music concerts—has rebounded strongly since the pandemic. South Africa generated $76 million in live music ticket sales in 2024, with a 5.9 per cent CAGR projected through 2029.

The report further stated that artificial intelligence (GenAI) is reshaping Africa’s creative industries.

It said media firms in South Africa are using AI to automate production and personalise content, while startups in Nigeria and Kenya are building local-language scripts and subtitles in Swahili and Yoruba, enabling “more inclusive storytelling that respects regional cultures.”

Despite the optimism, PwC identified major obstacles threatening Africa’s entertainment growth.

The report identified regulatory changes, tariffs and inflation as barriers to expansion, noting that rising living costs limit consumers’ ability to spend on media products.

PwC also observed that infrastructural gaps, particularly unreliable electricity, low broadband penetration, and unequal urban-rural access, continue to restrict the adoption of digital services.

“It remains a fundamental challenge to persuade consumers to allocate a larger portion of their discretionary income to E&M offerings,” the report warned.

While advertising is now the primary revenue source for the sector, consumer spending is lagging—growing at just 2 per cent CAGR globally, compared with 6.1 per cent for advertising.

PwC projects that Africa’s media future will be defined by mobile-first content, AI-powered storytelling, and a blend of traditional and digital media.

However, the firm urged policymakers and investors to address infrastructure gaps, regulatory inconsistencies, and digital skills shortages to sustain growth.

“To fully realise this future, stakeholders across the E&M value chain must move from insight to action. The trends are clear, but unlocking it will require bold decisions and collaborative execution.

“Whether you’re a content creator, investor, regulator, platform provider or policymaker, now is the time to engage. Africa’s E&M sector is redefining itself. By investing in scalable opportunities, supporting local talent and shaping inclusive digital ecosystems, we can collectively build a media landscape that reflects the continent’s diversity, creativity and ambition.

“We invite you to be part of this transformation—through strategic partnerships, data-driven insights and future-focused thinking,” the report said.