Africa Entertainment and Telecommunication Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Africa Entertainment and Telecommunication Market is Segmented by Telecommunication Services Type (voice (fixed and Mobile), Data (fixed and Mobile)) and by Country. The Market Sizes and Forecasts are Provided Regarding Value (USD) for all the Above Segments.

Africa Entertainment And Telecommunication Market Size

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Africa Entertainment And Telecommunication Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 63.17 Billion
Market Size (2029) USD 82.34 Billion
CAGR (2024 - 2029) 5.44 %
Market Concentration Medium

Major Players

Africa Entertainment And Telecommunication Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Africa Entertainment And Telecommunication Market Analysis

The Africa Entertainment And Telecommunication Market size is estimated at USD 63.17 billion in 2024, and is expected to reach USD 82.34 billion by 2029, growing at a CAGR of 5.44% during the forecast period (2024-2029).

With most African markets projected to grow online video revenues, the region's digital consumption growth is among the highest in the world. A large youth population, fast-improving mobile connectivity, and a flood of new streaming platforms into the market will drive this growth. As a result, the digital share of the video revenue will increase, resulting in the growth of the entertainment market in Africa.

  • Africa has a young and rapidly growing population, which presents a unique market driver for the entertainment and telecommunication industry. With the increasing youth population, there is a growing demand for entertainment content and communication services. Additionally, rising disposable income levels among the middle-class population in Africa contribute to increased spending on entertainment and telecommunication services.
  • According to the United Nations, Africa has the youngest population in the world, with over 60% of its population below the age of 25. This young demographic presents a significant market driver as the youth are avid consumers of entertainment content and early adopters of new telecommunication technologies. The demand for mobile data, streaming services, gaming, and social media platforms is on the rise, creating opportunities for the industry to cater to this growing consumer base.
  • The African Development Bank reports that Africa's middle-class population is expanding, with a significant increase in disposable income levels. This rise in disposable income translates into increased spending on entertainment and telecommunication services. Consumers are willing to invest in high-quality content, mobile data plans, broadband connections, and value-added services, driving the growth of the entertainment and telecommunication market in Africa.
  • The rapid expansion of mobile technology and digital transformation is another unique market driver in Africa. Mobile penetration rates are increasing, and the continent is witnessing a mobile-first approach, where smartphones and mobile devices are the primary means of accessing entertainment and communication services. The digital transformation of various industries, including media and telecommunications, is driving the demand for innovative content and connectivity solutions.
  • Furthermore, in recent years, a shift in trend has been observed in the African region, wherein through the sale and leaseback agreements of mobile towers with tower companies, telcos are moving toward the asset-light or Mobile Virtual Network Operator (MNVO) model. In a nutshell, MVNOs are wireless communications services provider that does not own the wireless network infrastructure over which it provides services to their customers. Airtel and MTN are among the two major telco service providers leading the trend in the African region.
  • In many parts of Africa, access to reliable and affordable internet connectivity remains a challenge. Infrastructure gaps, including limited broadband coverage and inadequate network infrastructure, hinder the expansion of Internet services. Additionally, high data costs and low-income levels in certain regions make internet access unaffordable for a significant portion of the population.
  • According to the International Telecommunication Union (ITU), as of 2020, Africa's internet penetration rate stood at around 39.3%. While this indicates progress, it also highlights the digital divide within the continent, with significant variations in internet access between countries and urban-rural areas. Limited internet connectivity inhibits the adoption of entertainment and telecommunication services that heavily rely on internet access.
  • In some regions, the lack of adequate telecommunications infrastructure, including reliable power supply and fiber-optic networks, poses challenges to expanding internet connectivity. Remote and underserved areas often face geographical barriers that make it difficult and costly to extend infrastructure and provide reliable internet services. These infrastructure challenges impede the availability and quality of internet connectivity required for entertainment and telecommunication services.
  • COVID-19 restrictions, such as social distancing measures and the closure of cinemas and theaters, prompted a significant increase in the consumption of digital content and streaming services. People sought entertainment options at home, leading to a rise in the demand for movies, TV shows, music streaming, and other forms of digital entertainment.
  • Various digital platforms experienced a surge in user engagement and adoption during the pandemic. For instance, local and international streaming platforms, such as Showmax, Netflix, and Disney+, reported increased viewership in Africa. These platforms catered to the growing demand for entertainment content, providing a wide range of movies, TV shows, documentaries, and original programming. There has also been an impact of the Russia-Ukraine war on the overall ecosystem.

Africa Entertainment And Telecommunication Market Trends

Data Access and Availability of Internet Access to Drive the Growth

  • African telecommunications operators experienced positive, if muted, growth since 2018 as total subscriptions, device ownership, internet penetration, and data usage continue to increase. The increased emphasis on flexibility, freedom and convenience in when, where, and how they interact with their preferred content is driving the growth of the entertainment and telecommunication industry in the region. According to the GSMA State of Mobile Internet Connectivity 2022, report, Sub-Saharan Africa is the only region where the cost of 1GB of data as a percentage of monthly GDP per capita exceeds 2%.
  • The increased availability of low-cost smartphones and improving coverage of 3G and 4G networks are driving the demand for data connectivity and the take-up of digital services. Investment in fixed wireless and fiber technologies will also help to drive the adoption of fixed broadband in the region. 
  • The increasing rate of development in the telecom infrastructure will create more opportunities for the entertainment industry in terms of better reach and new customer acquisitions. For instance, According to Internet World Stats, Around four out of 10 people in Africa had internet access in December 2021.
  • With the emergence of digital behavior, subscription models are playing a primary role in the monetization of the digital platform with evolving technologies, thereby creating opportunities for companies in the media and entertainment industry to achieve greater operational efficiencies. For instance in February 2022 Digital TV Research forecasts 13.72 million SVOD subscriptions by 2027, up from 4.89 million at end-2021.Whereas Netflix will account for 47% of the region's SVOD subscriptions by 2027. With no Amazon Prime countries in Africa, Amazon Prime Video is forecast to have 2.18 million paying subscribers by 2027.
  • Local companies, foreign investors, and global players have all made a significant investment in the continent. Domestic infrastructure sharing, cross border, and in-country mergers, and governments responding to the opportunity to regulate and to auction spectrum and licenses are some of the major factors playing a role in the growth of the telecommunication and entertainment market in the region.
Africa Entertainment And Telecommunication Market: Internet Penetration Rate, by Region, Global, in July 2022

Data Consumed through Smartphone Segment is Expected to Have Major Market Share

  • Africa is the only region in the world where the youth population is increasing. By 2050 Africa's young people, i.e., those aged between 0 and 24 years old, will increase by nearly 50 percent. Africa will have the most significant number of young people. Africa's youth are critical to the continent's future when it comes to the consumption of entertainment and telecommunication services as a whole. Smartphones are becoming the most convenient devices to access various types of entertainment as the number of people owning a smartphone is increasing at a rapid pace.
  • The emergence of social media is disrupting the industry and players are switching from traditional towards digital platforms, these changes are increasing their ads spend on the digital media due to which the sector is significantly benefitting from digital tools and platforms. Such shifts are facilitating efficient production, distribution, and consumption of content through mobile phones revolutionizing market growth.
  • However, additional taxes imposed on internet users across Africa for social media use, IP communication, or just general data use and the turf between OTT providers and mobile operators over taxes and regulations resulting in unfair competition may negatively impact the entertainment and telecommunication industry in the future.
  • Significant SVOD players are introducing pack durations and sachet pricing as part of their strategies to boost subscription rates and ensure that consumers can access preferred shows at a low cost. This move can help OTT platforms gain significant acceptance in the price-sensitive South Africa region. For example, TelkomONE, a player in South Africa's streaming market, announced the addition of premium linear channels and video-on-demand (VOD) content from the WarnerMedia library. All WarnerMedia channels, including Boing Africa, the continent's top dedicated Hollywood movie channel, TNT Africa, the home of superhero action for discriminating young people, and Toonami Africa, the fun-filled video playground for kids under 14, are now streamable.
Africa Entertainment And Telecommunication Market: Number of Subscriptions to Leading SVoD Services, in thousand, in Africa,2021

Africa Entertainment And Telecommunication Industry Overview

The media & entertainment market landscape is highly competitive and consists of some of the prominent players leading across the industry. In terms of market share, some of the major players currently dominate the market. However, with the advancement in the emerging network technology (5G) across the OTT services, new players are increasing their market presence thereby expanding their business footprint across the region.

  • October 2023 - Sony Ventures launched a USD10M fund to invest in African entertainment startups through the Sony Innovation Fund: Africa. This fund will support the growth of entertainment businesses in Africa.
  • July 2023 - Pan-African telecoms provider MTN Group has set to invest USD 3.5 billion (R65 billion) in Nigeria over the next five years. Africa’s largest mobile network operator, MTN, has been calling for partnerships for progress across Africa. The company wants to partner for progress with nation-states and twin its aspirations with its host countries.

Africa Entertainment And Telecommunication Market Leaders

  1. 264 Cru

  2. Sony Music

  3. Iflix

  4. MTN Nigeria Communications PLC

  5. Safaricom

*Disclaimer: Major Players sorted in no particular order

Africa Entertainment And Telecommunication Market Concentration
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Africa Entertainment And Telecommunication Market News

  • November 2023 - MTN South Africa has paid the Independent Communications Authority of South Africa (ICASA) R1.9 billion to settle outstanding spectrum fees. While ICASA granted MTN and other telecom companies, such as Vodacom and Telkom, until October 2023 to pay their bills, MTN said it would make its R1.9 billion payment to expand the country's spectrum deployment in the second half of 2023. 

Africa Entertainment & Telecommunication Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Market Drivers

      1. 4.4.1 Rise in Disposable Income

      2. 4.4.2 Improvement in Technology and Internet Network Access

    5. 4.5 Market Restraints

      1. 4.5.1 Issues Such as Piracy, Laws and Regulations, and Concerns Relating to Fraud During Gaming Transactions

    6. 4.6 Assessment of Impact of Covid-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Platform

      1. 5.1.1 PC

      2. 5.1.2 Smartphone

      3. 5.1.3 Tablets

      4. 5.1.4 Gaming Console

      5. 5.1.5 Downloaded/Box PC

      6. 5.1.6 Browser PC

    2. 5.2 By Geography

      1. 5.2.1 Nigeria

      2. 5.2.2 Ethipia

      3. 5.2.3 Egypt

      4. 5.2.4 Morocco

      5. 5.2.5 Kenya

      6. 5.2.6 Algeria

      7. 5.2.7 Zimbabwe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Gamesole

      2. 6.1.2 Kuluya

      3. 6.1.3 Chopup

      4. 6.1.4 Kucheza

      5. 6.1.5 Kagiso Interactive

      6. 6.1.6 Nyamakop

      7. 6.1.7 Celestial Games

      8. 6.1.8 Clockwork Acorn

      9. 6.1.9 Atos

      10. 6.1.10 Arista Networks

      11. 6.1.11 Broadcom Inc.

      12. 6.1.12 Cisco Systems

      13. 6.1.13 Dell Technologies

      14. 6.1.14 Hewlett Packard Enterprise

      15. 6.1.15 Huawei

      16. 6.1.16 IBM Corporation

      17. 6.1.17 NetApp

      18. 6.1.18 Arup Group

      19. 6.1.19 Callaghan Engineering

      20. 6.1.20 Etix Everywhere

      21. 6.1.21 Lupp Group

      22. 6.1.22 ABB

      23. 6.1.23 Eaton Corporation

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Africa Entertainment And Telecommunication Industry Segmentation

As consumers become more digital, their media, entertainment consumption, and purchase habits have also evolved from multi-tasking while watching TV to accessing information via multiple devices. This brings challenges and opportunities around the distribution and consumption of both print and digital content for companies across this industry. The user experience and their engagement with the media industry are still the primary business objectives while investing in this sector.

The Africa entertainment and telecommunication market is segmented by telecommunication services type (voice (fixed and mobile), data (fixed and mobile)) and by country. The market sizes and forecasts are provided regarding value (USD) for all the above segments.

By Platform
PC
Smartphone
Tablets
Gaming Console
Downloaded/Box PC
Browser PC
By Geography
Nigeria
Ethipia
Egypt
Morocco
Kenya
Algeria
Zimbabwe
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Africa Entertainment & Telecommunication Market Research FAQs

The Africa Entertainment And Telecommunication Market size is expected to reach USD 63.17 billion in 2024 and grow at a CAGR of 5.44% to reach USD 82.34 billion by 2029.

In 2024, the Africa Entertainment And Telecommunication Market size is expected to reach USD 63.17 billion.

264 Cru, Sony Music, Iflix, MTN Nigeria Communications PLC and Safaricom are the major companies operating in the Africa Entertainment And Telecommunication Market.

In 2023, the Africa Entertainment And Telecommunication Market size was estimated at USD 59.73 billion. The report covers the Africa Entertainment And Telecommunication Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Entertainment And Telecommunication Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Africa Entertainment and Telecommunication Industry Report

Statistics for the 2024 Africa Entertainment And Telecommunication market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Entertainment And Telecommunication analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Africa Entertainment and Telecommunication Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)