A new report by PricewaterhouseCoopers has said that the Nigeria music industry is “growing strongly” as revenue continues on an upwards trajectory.
According to the PwC entertainment and media report, the country’s music scene is “vibrant and generating healthy revenue growth”.
The report which was released on Wednesday, September 19, 2018 stated that $35 million in revenue was made by the music industry in 2017. The report 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 report, 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.
“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 are 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”.
The report says that with 60 percent of Nigeria’s population under the age of 25, the “challenge for local producers is to make films that capture the imagination of this demographic”.
Though the report acknowledged that box office revenue is increasing it highlighted that it 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”.