African entertainment & media to embrace Convergence 3.0 paradigm

24 September 2018 Consultancy.africa

Global professional services firm PwC has released the Africa edition of its Entertainment & Media (E&M) Outlook, which reveals high revenues and a transforming market across the continent. Aside from South Africa, Nigeria, Kenya and Ghana are the largest markets for E&M on the continent. 

While Industry 4.0 might be the buzzword for the current scenario in the digital arena, the E&M sector has a buzzword of its own – Convergence 3.0. A new report from Big Four accounting and advisory firm describes Convergence 3.0 as “a new and different wave of convergence driven by different capabilities and higher expectations, and manifesting itself simultaneously in multiple dimensions.”

Broadly, a number of “supercompetitors” are emerging in the sector, which has drastically altered industry dynamics, in addition to a transformation in traditional sources of revenue brought about by an increase in digital access. Companies now have easy and low-cost ways in which to reach their customers through mobile services.

Nigeria E&M revenues and composition

Africa is a prime market for firms to experiment with the new Convergence 3.0 paradigm, given that the large and relatively untapped market will rest on 1 billion mobile internet connections by as early as 2022. PwC has analysed some of the key markets in this scenario, with projections of where they might end up over the same period.

The largest E&M market, by far, on the continent is South Africa, with total revenues from last year coming in at just under $10 billion. Perhaps an indication of the relatively low level of digital permeation in the continent is the fact that revenues from the non-digital E&M segment exceeded that from the digital E&M segment.

The next biggest market on the list – perhaps expectedly – is that of Nigeria, which has the largest population on the continent, of which the digitally connected portion is increasing by the day. At the end of 2017, the country’s revenues from the E&M sector stood at over $3.5 billion – a figure that is projected to surpass $4.5 billion by the end of this year.

Kenya E&M revenues and generation

By 2022, the E&M sector in Nigeria will reach a value of just under $10 billion, although the composition of the revenue sources is expected to remain more or less stable. The two segments that have dominated since 2012 have been TV & Video and out-of-home entertainment, both of which will remain dominant till 2022. One sector that is expected to emerge neck and neck with these sectors, meanwhile, is the business-to-business segment.

Kenya’s revenue stream is relatively more modest, coming in at just over $1.6 billion for last year. The sector’s growth is also expected to be relatively sluggish for this year, with projected revenues jumping less than $200 million for 2018. By 2022, Kenya’s M&E sector will be generating revenues of nearly $3 billion.

Nevertheless, the country has the added advantage of being more politically stable than the others, which will make it a popular destination for investment over the next few years. The country appears to be lagging behind the global market in some respects, given that the lion’s share of E&M content will continue to be consumed via 3G connections.

Ghana E&M revenues and Y-o-Y growth

The next largest E&M market on the continent is that of Ghana, which lags significantly behind the rest at a revenue level of $750 million last year – projected to reach nearly $900 million by the end of this year. The sector is expected to break through the $1 billion barrier by next year, and will reach nearly $1.5 billion by 2022.

Much like Kenya, Ghana also has political stability to rely on, although the country’s year-on-year-growth (Y-o-Y) in the E&M sector is on a steady decline and will continue to be all the way till 2022. On the other hand, the Y-o-Y growth with internet access far exceeds the figure without internet access. 

Profile

Lionel Reina replaces Pompigne-Mognard as new CEO at APO Group

06 December 2018 Consultancy.africa

Media relations consultancy APO Group has restructured its senior leadership, having appointed Lionel Reina as its new CEO, while the former CEO Nicolas Pompigne Mognard takes on the role of Chairman for the group and begins an Africa-centred private investment fund.

APO Group is a consulting firm that operates with a primary focus in the African and Middle Eastern markets, and offers a broad range of services including media relations, press release distribution, event promotion, media monitoring, public relations and media intelligence services, among others.

Reina holds a degree in Business Administration, and has worked with a number of illustrious organisations throughout his two-decade career. He began at T-Systems Enterprise Services, where he spent four years and ended up as the Director for International Business Development.

He then joined Global One for just over three years before joining Orange Business Services, where he spent nearly 11 years and held the positions of Vice President for Sales in Western Europe as well as General Manager for the Europe, Middle East and Africa region.

Lionel Reina replaces Pompigne-Mognard as new CEO at APO Group

Reina also held the position of Director for the Communications, Media and Technology department at global management consultancy Accenture for just under two years. In the last four years, he spent a brief spell as CEO of Simstream followed by a brief spell as Managing Director for the Benelux region at Damovo.

He will now join the APO Group, a firm that has been rapidly expanding its operations across the African continent recently, not only through a major project to promote Rugby Africa across the world, but also through the launch of a new press release monitoring tool.

Nicolas Pompigne-Mognard – who now takes over as Chairman – said of Reina’s appointment, “this is the right time for APO Group to bring in a professional CEO as we continue to grow. I have known Lionel for many years, and from the moment I decided to change my role, I was certain he was the right person to help change the narrative of APO Group and move us forward to the next level and beyond.”

Reina himself added that “this is a great opportunity and I want to personally thank Nicolas for the trust he has placed in me, I've been following the progress of APO Group for years and been hugely impressed by their approach to innovation and willingness to stay ahead of the competition.”