New data from global auditing firm Pricewaterhouse Coopers says the industry will witness a 13% growth by 2020.
Global auditing firm Pricewaterhouse Coopers has confirmed what many in the Nigerian music industry have been saying for a couple of years now: Nigerian entertainment – music- in particular is able to generate billions of naira in revenue and create a prosperous ripple effect on our economy.
In their 2016-2020 Entertainment and Media Outlook, PwC notes that the previous half decade has seen unprecedented growth, and predicts that the next four years will even be more momentous for the music industry.
According to the report, the Nigerian music industry was worth $40 million (N11 billion) in 2011 and $47 million (N14 billion) in 2015. By 2020 this figure is expected to double to $86 million (N27 billion). This growth is as a result of the explosion of digital distribution of music that has reduced traditional piracy – the Alaba cartel that has held the industry back for so long.
‘Nigeria’s total music revenue is dependent on ringtones and ringback tones’, says the report. It goes further to say that by 2020, more than 90 percent of music sales in Nigeria would be on digital platforms.
While smartphone penetration in Nigeria is still at only 30 per cent, that is still a huge figure and it means that close to 54 million Nigerians have access to the internet. That is still more than the entire population of South Africa and places the country at a distant second in terms of the potential for growth.
2016 has been particularly good for Nigerian music. Wizkid scored a Drake feature that’s being distributed globally and earned himself a Sony deal in the process; Davido was also signed to Sony and Ayo Jay to RCA, as well as Tiwa Savage getting a Roc Nation management deal.
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