Looks like the Nigerian music market is about to boom. Unfortunately, we can’t say the same for ‘Nollywood.’
According to Pricewaterhouse Coopers (PwC), Nigeria’s music industry continues to explode. Unfortunately, Nigeria’s film sector – dubbed Nollywood – continues to struggle along.
In its recently-published Entertainment and Media Outlook 2018-2022 report, PwC noted the depreciation of the country’s current – the naira – has affected Nigeria’s overall Entertainment and Media (E&M) revenue.
Despite this, the Nigerian music industry brought in $35 million in revenue in 2017.
Up 12% over 2016, the consulting firm estimates the industry to nearly double its growth in a few years. By 2022, Nigeria’s music industry is expected to bring in $65 million in revenue.
Why? Thanks to mobile formats and the growth of local streaming platforms in the country.
Describing the music scene in Nigerian as “vibrant and generating healthy revenue growth,” PwC noted,
“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.”
Digital music overtook physical music revenue last year. Mobile formats, however, account for virtually all of digital revenue.
Mobile telcom operators dominate Nigeria’s music industry. PwC writes telcom operators own some of the country’s biggest streaming and downloading full-track services. Ringback tones (RBT), still a popular mobile format, remain confined to the controlled environment of mobile operators. This ensures piracy – which readily affects other music sectors, including downloads and physical products – doesn’t affect mobile revenue.
Nollywood, however, has experienced dismal growth. The worst performing entertainment sector in Nigeria, cinema brought in $13 million. That’s due to a lack of cinemas.
In 2018, just 114 cinema screens across the country served a population of 198 million. That number will increase to just 152 by 2022.
Yet, Nollywood may eventually see a turnaround. PwC explains movie budgets are rising. Local filmmakers and producers have also paid more attention to script development and technical standards.
You can check out the complete report here.
Featured image by Emily Nkanga (CC by 4.0).
Amazing couple!!!! Samankwe!!!! Love you guys!
Very informative!