According to a new report by PricewaterhouseCoopers (PwC), Kenyan entertainment and media market revenue would increase at a compound annual growth rate (CAGR) of 8.5 percent over the next five years, hitting the Sh 300 Billion (US$3 billion) mark in 2020, and totalling Sh 320 Billion (US$3.2 billion) in 2021.
The report further notes that the Kenyan entertainment and media market was worth Sh 210 Billion (US$2.1 billion) in 2016, up 13.6% from 2015.
The report, which is the 8th annual edition, released this month, is a comprehensive source of analyses and five-year forecasts of consumer and advertising spending across five countries (South Africa, Nigeria, Kenya, Ghana and Tanzania) and 14 segments: Internet, data consumption, television, cinema, video games, e-sports, virtual reality, newspaper publishing, magazine publishing, book publishing, business-to-business publishing, music, out-of-home, and radio.
The report noted that internet access is the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates to 2021. It will also be the first subsegment in which revenues are expected to hit over Sh 100 Billion (US$1.0 billion), which it will reach in 2020.
Mobile Internet access is the main revenue driver, as smartphone adoption increases in popularity.
Radio advertising revenue
“Prior to 2016, Kenya’s largest advertising market was radio. Considering its small economy, Kenya has the largest radio advertising market in the Middle East and Africa region, and the 14th-largest in the world. By 2021, it will generate more radio advertising revenue than Italy, a country with a bigger population and an economy more than 20 times larger.” PwC said in the report.
