Africa SVOD Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.10 Billion |
| Market Size (2029) | USD 3.59 Billion |
| CAGR (2024 - 2029) | 11.29 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa SVOD Market Analysis
The Africa SVOD Market size is estimated at USD 2.10 billion in 2024, and is expected to reach USD 3.59 billion by 2029, growing at a CAGR of 11.29% during the forecast period (2024-2029).
The Africa SVOD market is valued at USD 1,892.1 million in the current year and is expected to register a CAGR of 11.29% during the forecast period to become USD 3,594.8 million.
- The growing popularity of mobile devices, Smart TVs, and tablets is fueling the expansion of the subscription video-on-demand (SVOD) market. Customers' desire to watch desired shows increases the demand for content personalization, resulting in a significant number of watchers, which drives the market growth. The market influences growing access to smartphones and the internet, which creates new potential for the Africa SVOD Market.
- The increasing use of SVOD in the region can be due to the limiting genre selections, flexibility, increased device availability, internet penetration, and overall lower pricing. Furthermore, the increasing demand for customized content triggered significant adoption rates of over-the-top (OTT) devices. This offered the users the flexibility to view varied content. Also, affordable rates of high-speed internet across the united states led to a massive increase in the adoption rates of subscription services, according to user convenience. Furthermore, several SVOD apps provide features such as users streaming local or global news to their users and chat services.
- Further, 5G is the next generation of wireless technology that has the potential to drive innovation and alter media consumption. 5G is more efficient at transmitting massive amounts of data, and users may expect quicker download speeds and more connected gadgets than ever before. According to Ericsson, The number of 5G subscriptions in Sub-Saharan Africa is predicted to reach 104 million by 2027, from 2.59 million in 2021. Such huge adoption of 5g would create lucrative opportunities for the SVOD players in the region.
- Content fragmentation is another crucial SVOD trend to look out for in 2023. Content fragmentation is a method broadcasters use to attract specific demographics and increase conversions. The goal is for the content to connect with the target audience if appropriately classified for SVOD streaming delivery.
- Content fragmentation in streaming distribution can help marketers establish loyal audiences. Because content fragmentation targets particular audiences, broadcasters that wish to monetize their videos through adverts gain from it. Access to a highly targeted market is valuable for organizations looking to deliver to a target audience and increase conversions. Trends like this are expected to drive the studied market in the region.
- To expand their presence to a broader range of audiences, the SVOD firms in the region are carefully strategizing their pricing so that they can capture a wide market share and have a competitive edge. For instance, in November 2022, In South Africa, Amazon Prime Video provided the best value for money compared to other streaming services. Regarding overall cost per title, Amazon Prime Video is the most affordable, with 9,572 titles available for ZAR 79 (USD 5.33) per month - less than one cent per title. Whereas Netflix's ordinary membership is close to Amazon's at R0.03 per title, with a catalog of 5,940 titles at ZAR 159 (USD 10.71) per month, MultiChoice's Showmax streaming service is close behind Netflix, with 2,165 titles at ZAR 99 (USD 6.63) per month.
- On the flip side, SVOD services collect any personal data from their users, such as their viewing history, search history, and payment information. This data can be used to improve the user experience through personalized recommendations and content suggestions. However, it also presents significant privacy challenges. One challenge is ensuring the security of user data. SVOD services are prime targets for cybercriminals motivated by the potential financial gain of stealing user data. As such, SVOD services must invest heavily in cybersecurity measures to protect against data breaches.
- The pandemic has positively affected the studied market. Various firms have entered the market with new content. For example, MGM has announced the introduction of a new film and SVOD service in South Africa during a pandemic. It will be accessible as part of Vodacom's Video Play Premium service and as a standalone, a la carte subscription Micro Pass. The new service relied on MGM's film and television library, which includes titles such as The Hobbit, Legally Blonde, The Pink Panther, The Handmaid's Tale, Get Shorty, and Teen Wolf.
Africa SVOD Market Trends
Drama Genre is Expected to Drive the Market
- Drama is the least expensive genre to make movies because special sets, costumes, locations, props, and unique visual effects are only sometimes needed. The definition of a drama is the widest of any genre; anything that occurs, anywhere, at any time, qualifies. Other genres, on the other hand, have higher standards for classification; for example, an action movie needs high-octane action, a horror movie needs scary events, a comedy needs hilarious components, etc.
- African drama is a diverse genre that often reflects the cultural and social issues of the continent. African drama is uniquely positioned in the history of drama, characterized by its innovation and experimental nature. African drama often blends elements of traditional oral narrative with contemporary themes and performance styles. Some of the most well-known African playwrights include Wole Soyinka, Ola Rotimi, Athol Fugard, and Ngugi wa Thiong'o. The genre of African drama includes tragedy, comedy, and historical fiction, and it is often performed in local languages as well as English and French.
- A new era of filmmaking began in the cinema and audiovisual industry when modern, lightweight, and economical digital film equipment first arrived on the continent a few decades ago. Suddenly, young Africans had access to tools for creating audiovisual content. Since digital filmmaking has advanced so much, it is now possible to record a video with cinematic quality on a smartphone. High Fantasy, directed by South African Jenna Bass, is one illustration. It had its world premiere at the Toronto International Film Festival (TIFF).
- According to the National Bureau of Statistics NBS (Nigeria), The arts, leisure, and entertainment sector contributed 24.51 USD Millions of Nigeria's GDP of 2023. This would push the government to establish some policies to increase the number of output films in the region, enabling many SVOD players to enter the market to capture the market share by screening those films on their respective platforms.
- Though television has been witnessing changing strategies of companies' expenditure on advertising, it has been described as the primary medium companies use to market their product to children. This consequently makes television commercial has a significant influence on children. The children tend to trust what the adverts tell them about the product and fail to realize its purpose is to sell it to the consumer. For example, PremiumFree, a free-to-air satellite television, launched in South Africa with 18 channels. It launched with a potpourri of content ranging from sports, movies, telenovelas, and drama series to kids' content, gospel, comedy, and reality programming, increasing the advertisement viewers.
South Africa is Expected to Hold Significant Share of the Market
- The SVOD market in South Africa has been growing steadily over the past few years, with more and more local and international players entering the market. The most popular SVOD digital original series in South Africa was action/adventure shows, followed by crime dramas and sci-fi/fantasy series. Other South African SVOD market trends include the increasing adoption of mobile streaming and the rise of local content production. In addition to international giants like Netflix and Amazon Prime Video, local players like Showmax and DSTV Now are also gaining popularity.
- South Africa is a country that speaks several languages. Any SVOD provider should supply material in 11 languages to make it available to all its users. However, if it must generate so many versions of its information, it would be preferable to make it available to the broadest possible audience. In the case of Africa, other countries may well be included, as it is rare for a language to be spoken in many areas. If these efforts are successful, the content may be dubbed into more languages and made available to a bigger audience. For example, while cultural distinctions should not be neglected, an African audience is more likely to identify strongly with the hero of an African film.
- Furthermore, there is an international demand for African content: on the one hand, the African diaspora who want to stay connected to their homeland, and on the other, those who have become acquainted with South African films through international film festivals. South African material has an advantage in expansion because English language content can easily cross over to foreign audiences. Localization is critical for South African material to attain its full potential. For example, dubbing a film into African French provides it access to more than 20 nations. In contrast, content in Mid-Atlantic English, which is growing increasingly popular in South Africa due to the numerous foreign productions, can tour the world. This would create an opportunity for the studied market to grow.
- The National Film and Video Foundation supported Films (NFVF) supported two of the 14 films made in South Africa last year. Bakarat (comedy/drama) and SanDance (documentary) were the two films. In addition, the NFVF supported three of the 18 films released via subscription video-on-demand (SVOD) platforms in the same year. Such a huge number of films on the SVOD platforms would push people to subscribe to the video-on-demand platforms. Further, The growing middle class and increased disposable income in the country give fresh chances for SVOD companies to reach new clients. The government has also tried to improve internet connection in rural regions, which has increased internet penetration.
- The rising population in the country to create an opportunity for the studied market to grow. According to Statistics South Africa, South Africa's population will expand to around 4,679 inhabitants million by 2023. SVOD (Subscription Video-On-Demand) services have significantly impacted young people, as they offer a convenient, low-cost way to access a wide range of TV shows and movies. Young people, in particular, are attracted to SVOD services by the content, but they also appreciate the flexibility of watching shows on their schedule.
Africa SVOD Industry Overview
The Africa SVOD Market is consolidated, with a few prominent players such as Amazon.com, Inc., Netflix, Videoplay, and others; corporations continually spend on strategic partnerships and product development to increase market share. The following are some recent market developments:
In March 2023, The MultiChoice Group and Comcast's NBCUniversal and Sky agreed on a new partnership that will bring their content and technology to streaming customers across MultiChoice's 50-market footprint in sub-Saharan Africa at a time when the continent is on the cusp of an inflection point in terms of broadband connectivity and affordability. MultiChoic will control 70%, and NBCUniversal will own 30% of the new Showmax group, respectively. Aiming to establish the top streaming service in Africa, it will build on Showmax's current popularity.
In August 2022, Amazon Prime Video announced the introduction of a localized version of its streaming service in Nigeria, one of Africa's most important markets. Just as it did in Southeast Asia a few weeks ago, the digital behemoth aims to increase its subscriber drive in new areas such as Africa by expanding its investment in local production, revealing slates of localized originals, and introducing cheaper Amazon Prime membership options to users.
Africa SVOD Market Leaders
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Amazon.com, Inc.
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Netflix
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VideoPlay
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Multichoice Group (ShowMax, DStv)
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Disney+
*Disclaimer: Major Players sorted in no particular order
Africa SVOD Market News
- February 2023: Amazon Prime Video announced a multi-picture licensing arrangement with South Africa's Known Associates, the parent company of Johannesburg-based Known Associates Entertainment (KAE) and Cape Town-based Moonlighting Films, during the Joburg Film Festival on Thursday. Over 20 South African feature films, including Zane Meas' "Klip Anker Baai," Marvin-Lee Beukes' "Tickets," Jahmil Qubeka's "You Are My Favourite Place," and Norman Maake's "Piet's Sake 2," will be available exclusively on Prime Video.
- August 2022: Netflix announced a lineup of new and returning African originals for late 2022 and early 2023, including scripted and unscripted programs and feature films. In addition, Netflix has formed a multi-project collaboration with South African filmmaker Mandlakayise Walter Dube, who helmed Netflix's first commissioned African film Silverton Siege. Previously, the streamer inked multi-title deals with African creators such as Mo Abudu and her Ebonylife Studios, Kunle Afolayan, and his Nigerian production company KAP.
Africa SVOD Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.1.1 Size Estimates and Forecasts for 2021-2028
4.1.2 Market Size of Revenue in USD Million
4.2 Average Revenue Per User in USD
4.3 Industry Ecosystem Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment of the impact of COVID-19 on the Market
4.6 Assessment of the impact of the Russia-Ukraine War on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Intensification of Competition as Several Global Players Enter the Market to capture the Nascent audience
5.1.2 Enticing Marketing Strategies like Free Mobile Plans, Regional Partnerships, etc. are anticipated to aid the Long Time Growth of Market
5.2 Market Restraints
5.2.1 Higher Pricing Plans act as a Barrier for Adoption
5.3 Analysis of key demographic trends and patterns related to S-VoD industry in Africa (Coverage to include Population, Internet Penetration, S-VoD Penetration, Age & Income, etc.)
5.4 Key Metric Analysis
5.4.1 Subscription Base of Various Platforms in Africa (Netflix, Apple TV+, Amazon Prime Video, etc.)
5.4.2 Titles Available with Key Vendors in Africa
6. MARKET SEGEMENTATION
6.1 By Content Genre
6.1.1 Drama
6.1.2 Music
6.1.3 Sports
6.1.4 Other Content Genres
6.2 By Geography
6.2.1 Kenya
6.2.2 South Africa
6.2.3 Nigeria
7. COMPETETIVE LANDSCAPE
7.1 Company Profile
7.1.1 Amazon.com, Inc.
7.1.2 Netflix
7.1.3 VideoPlay
7.1.4 Multichoice Group (ShowMax, DStv)
7.1.5 Disney+
7.1.6 Apple TV+
7.2 Market Share of Key Players
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE OUTLOOK
Africa SVOD Industry Segmentation
SVoD stands for subscription video on demand, a service that charges a set monthly fee for unlimited access to a vast selection of shows. Users are in complete control of their subscriptions and can choose the exact moment the program will begin. Additionally, they can choose to stop, rewind, fast-forward, or pause the show. Although there is no programming schedule, it is paid TV programming that features popular TV shows and motion pictures.
The Africa SVOD Market is segmented by content genre (drama, music, Sports, and other content genres) and geography (Kenya, South Africa, and Nigeria).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
Africa SVOD Market Research Faqs
How big is the Africa SVOD Market?
The Africa SVOD Market size is expected to reach USD 2.10 billion in 2024 and grow at a CAGR of 11.29% to reach USD 3.59 billion by 2029.
What is the current Africa SVOD Market size?
In 2024, the Africa SVOD Market size is expected to reach USD 2.10 billion.
Who are the key players in Africa SVOD Market?
Amazon.com, Inc., Netflix, VideoPlay, Multichoice Group (ShowMax, DStv) and Disney+ are the major companies operating in the Africa SVOD Market.
What years does this Africa SVOD Market cover, and what was the market size in 2023?
In 2023, the Africa SVOD Market size was estimated at USD 1.86 billion. The report covers the Africa SVOD Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa SVOD Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa SVOD Industry Report
Statistics for the 2024 Africa SVOD market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Africa SVOD analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
