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Internet will overtake TV as top media ad platform in South Africa within 5 years, says PwC

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By John McCarthy | Opinion Editor

September 18, 2014 | 3 min read

The increasing accessibility of the internet will generate more consumer spend than any other platform in the next five years in the South African entertainment and media industry, according to a report by PricewaterhouseCoopers (PwC).

Internet, video games and radio were the fastest growing sectors

In the fifth edition of PwC’s South African E&M outlook report, the nation's entertainment and media market was projected to grow by 10.2 per cent on average annually between 2014 and 2018.

The media market’s most prominent ad platform in the region will be the internet, accounting for over two-thirds of total revenues during the period.

This was followed by TV, which will receive another two-thirds share of the E&M industry with income projected to reach R39.6bn (£2.18bn) in 2018.

However, this share will reportedly drop as internet access grows.

The music industry will remain relatively flat with only 0.5 per cent annual growth, accounting for around R2.18bn (£0.12bn) in 2018.

In contrast, video games and radio were found to be the fastest emerging markets, being projected for nine per cent and 8.2 per cent annual growth rates respectively.

The report said: “Video games has made the greatest transition to digital, largely due to the popularity of mobile gaming, but also because of the increased potential for digital distribution of console games.”

Vicki Myburgh, entertainment and 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.

“The future may well be digital in South Africa, as with the rest of the world – many of its products and services can already be delivered in digital form. But 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.”

Myburgh added: “Technology is increasingly being driven by consumers’ needs and expectations.”

Following the trend of internet access allowing advertisers more digital opportunities, earlier this year PwC released a study claiming a UK mobile advertising boom caused the market double to over £1bn since 2013.

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