A new report by PricewaterhouseCoopers says Nigeria’s music industry is “growing strongly” as revenue continues on an upwards trajectory.
The PwC entertainment and media report described the country’s music scene as “vibrant and generating healthy revenue growth”.
According to the report, $35 million in revenue was made by the music industry in 2017.
The report, released on Wednesday, read: “Streaming accounts for a negligible share of music revenue in Nigeria, but it is a sector that is growing strongly and the country has several homegrown all-you-can-listen-to music services, which compete with the big overseas brands like Apple Music and Deezer.
“Total music revenue has been climbing since 2013 and will carry on doing so over the next five years at a 13% CAGR to increase from US$35 million in 2017 to US$65 million in 2022.
“Mobile dominates digital revenue. Digital music revenue overtook physical music revenue as far back as 2013, but mobile formats – essentially, caller ringback tones (RBTs) – account for virtually all of digital revenue.
“It is therefore a music industry dominated by mobile telecom operators, which also own some of the country’s biggest streaming and downloading full-track services.”
The PwC report, however, noted that Nollywood, Nigeria’s film sector, is struggling to grow due to insufficient cinemas.
“Nigeria’s 114 cinema screens service a population estimated, in 2018, at 198 million. With such a small number of venues, the sector will struggle to grow,” the report said.
“Although 2017 was considered a strong year, thanks to the runaway success of the rom-com The Wedding Party, released in late-December 2016, and continued to show well into the New Year, overall box office revenue from the industry was only US$12 million. This is a small figure given that Nigeria is Africa’s second-largest economy behind South Africa.”
“Films made in Nollywood at a crossroads. Nollywood remains hugely prolific, producing over 2 000 films a year, but these are generally straight-to-DVD affairs, which get minimal play in the cinemas. Local producers are trying to push more of their films into mainstream theatrical distribution.”
With 60 percent of Nigeria’s population under the age of 25, the report said the “challenge for local producers is to make films that capture the imagination of this demographic”.
According to the report, box office revenue is increasing but could grow faster.
“Box office revenue in Nigeria will reach US$18 million by 2022, up from US$12 million in 2017. There is obvious scope for further growth,” it said.
Copyright 2018 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Follow us on twitter @Thecablestyle