South Africa’s media and entertainment sector strengthens its digital lead

South Africa’s entertainment and media (E&M) industry is entering a period of steady, digitally driven growth, with PwC’s Africa Entertainment and Media Outlook 2025–2029 projecting that the country will remain the continent’s largest and most mature E&M market.

Despite a modest compound annual growth rate (CAGR) of 3.5% through 2029, the sector’s scale, infrastructure, and technological sophistication continue to set it apart from its African peers.

“Africa’s E&M future promises a dynamic convergence of technology, creativity and market growth,” PwC said. “South Africa’s continued investment in connectivity, digital skills and local content will determine how successfully it leads the continent’s media transformation.”

The report shows that internet advertising, OTT streaming, and mobile gaming are the country’s fastest-growing segments, reflecting South Africa’s expanding connectivity and the steady adoption of 5G.

By 2029, digital advertising is expected to account for 74% of total ad spend, as brands shift budgets away from traditional platforms toward performance-driven digital campaigns on social media, e-commerce sites, and connected TV.

Nigeria remains the fastest-growing E&M market in Africa with a 7.2% CAGR over the period (industry market value of $5.8 billion by 2029).

South Africa is the largest E&M market on the continent, reaching $17.4bn (R321.2bn) by 2029, but will experience slower growth at a 3.5% CAGR, while Kenya is expected to grow at a 5.2% CAGR to a market size of $ 5.2bn by 2029.

“South Africa’s E&M market stands out for its scale, maturity and connectivity infrastructure,” said Charles Stuart, PwC Africa’s entertainment and media leader. “Internet advertising, OTT streaming and mobile gaming adoption drive growth.”

The report highlights that internet advertising revenue will grow at a CAGR of 7.9%, reaching R51.7bn by 2029. Kenya’s internet advertising market will grow at a CAGR of 16%—the fastest globally.

OTT (over-the-top) video services, such as Netflix and Showmax, are also expanding rapidly in South Africa, projected to grow at 6.7% CAGR. This growth is supported by affordable mobile data packages and a strong consumer shift toward on-demand, mobile-first entertainment.

South Africa is also consolidating its position as a regional gaming hub, with video games and esports expected to grow by 7.1% annually, driven largely by mobile gaming accessibility.

Meanwhile, live music ticket sales are rebounding from pandemic lows, with revenues projected to grow by 5.9% annually, reinforcing the country’s role as Africa’s leading live entertainment destination.

However, PwC warns that economic headwinds, including currency volatility and inflation, continue to weigh on consumer spending.

While the country’s digital infrastructure is advanced, affordability remains a challenge—62% of E&M spending in South Africa still goes toward connectivity costs, limiting what consumers can spend on content and advertising compared to global averages.

The country’s ongoing digital transition is also transforming its traditional media landscape. By 2028, digital advertising is expected to surpass print ad revenue for the first time, and digital out-of-home (DOOH) advertising will overtake traditional billboards.

Beyond entertainment, technological advances such as generative AI (GenAI) are beginning to reshape South Africa’s media landscape, helping companies streamline production, personalise content, and create in local languages for diverse audiences.

While South Africa’s E&M growth may lag behind faster-rising peers like Nigeria and Kenya, its digital maturity and creative ecosystem position it as the continent’s anchor market for innovation, content production, and investment.

“Despite global economic pressures, Africa’s leading E&M markets are showing resilience and momentum,” Stuart said. “These figures reflect more than recovery—they signal a structural shift toward scalable digital platforms, youth-driven engagement and new monetisation models.” 

BUSINESS REPORT