The second annual PricewaterhouseCoopers' South African Entertainment and Media Outlook 2011-2015 Report has just been released - and the section looking at television in South Africa contains major findings and startling projections and facts that every broadcaster, TV channel, TV executive, producer, and worker within the South African TV industry needs to take note of.
Among the major and startling findings of the detailed PricewaterhouseCoopers' South African Entertainment and Media Outlook 2011-2015 Report is:
- that subscription television in South Africa is growing at an extremely rapid pace, contributing massively to pay TV growth, and that pay TV revenue from subscriptions will continue to grow robustly,
- that the overall South African TV market grew 18,8% in 2010 - the largest increase during the past five years. Growth was fuelled by a 25,2% increase in subscription television, reflecting a jump in subscription households, and by a 14,7% increase in broadcast advertising,
- that the entire TV market in South Africa is in transition and moving to becoming all digital,
- that South African and quality local TV content is important and becoming more important to retain and grow audience share,
- that sport is still king for television operators. ''The growth of the industry globally has been based on sports coverage, and sporting broadcasts still underpin subscription services'',
- that the currently small online television advertising market is expected to more than triple in size over the next five years to reach R32 million in 2015,
- that high definition (HD) viewing is continuing to attract high-end consumers,
- that TV advertising is expected to accelerate with faster economic growth over the next five years,
- that the availability of tablets and cheaper wireless internet access is expected to fuel growth in the mobile television market,
South Africa TV spending (R billions)
PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates
The PricewaterhouseCoopers' South African Entertainment and Media Outlook 2011-2015 Report also makes startling projections, and says that:
- the launch of mobile TV in 2010 in South Africa has created a new advertising revenue stream ''that we expect will reach R22 million by 2015. Together, online and mobile television advertising will total an estimated R54 million in 2015'',
- Total television advertising will increase at 8.0% compound annual rate from R8,6 billion in 2010 to R12,7 billion in 2015.
- During the past two years, 92% of total television growth was generated by subscription spending. Subscription spending overtook advertising in 2009 to become the largest component of the television market, generating half of total spending in 2010. ''We expect new services and improving economic conditions to continue to fuel subscription spending, which we project will increase at a 12,0% compound annual rate to reach R17,1 billion in 2015, up from R9,7 billion in 2010.
- Mobile television will also generate an incremental subscription revenue stream beyond the traditional subscription market, says the report. ''We project that mobile TV subscription spending will reach R102 million by 2015''
- The SABC, which is funded by public television licence fees, is expected to increase by 1,0% compounded annually from R1,03 billion in 2010 to R1,08 billion in 2015.
- Growth for the total television market in South Africa is expected to average 9,9% compounded annually, rising from R19,3 billion in 2010 to a projected R30,9 billion in 2015.
ALSO READ: Special report - pay TV households in South Africa grew by 600 000 in 2010; local pay TV sector set for massive growth and revenue.
