Increased Internet access will generate more consumer spend than any other media product or service in the next five years in the South African entertainment and media industry, according to a report issued by PwC.

Vicki Myburgh, Entertainment & Media Industries Leader for PwC South Africa, said: “Growth in the South African entertainment and media industry is largely being driven by the Internet and by consumers’ love of new technology, in particular mobile technology, such as smartphones and tablets, as well as applications powered by data analytics and cloud services. Technology is increasingly being driven by consumers’ needs and expectations.”

According to PwC’s South African Entertainment and Media Outlook 2014-2018, South Africa’s entertainment and media market is expected to grow by 10.2% compounded annually (CAGR) from 2014 – 2018 to a value of R190.4bn ($17.26bn).

By far the largest segment will be the Internet. Combined revenues from Internet access and Internet advertising will account for an estimated R71.6bn ($6.5bn) in 2018, accounting for 37.6% of total revenues.

The slowest growing segment in the E&M industry will be the music industry, according to the survey. Annual revenue is forecast to grow marginally by a CAGR of 0.5% to remain relatively flat at R2.18bn ($0.2bn) in 2018.

End-user spending, consisting of spending by consumers and other end-users on products and services produced by the entertainment and media industry, will rise at 12% CAGR over the next five years from R72.8bn ($6.6bn) in 2013 to reach an estimated R128.1bn ($11.6bn).

According to the study, Nigeria’s entertainment and media revenues will reach an estimated $8.5bn in 2018, more than doubling from the 2013 figure of $4.0bn at a CAGR of 16.1%.

This represents one of the fastest growth rates in the world. The Internet will be the key driver for Nigeria, where the number of mobile Internet subscribers is forecast to surge from 7.7 million in 2013 to 50.4 million in 2018.

Meanwhile, Kenya, which recorded $1.7bn in entertainment and media revenues in 2013, is forecast to rise to $3.1bn in 2018.

Myburgh said: “We believe that progress in the South African E&M market will be gradual and that there are still plenty of opportunities for ‘old’ and ‘traditional’ media yet.”