Africa SVOD Market Size (2024 - 2029)

The Africa SVOD market is experiencing significant growth, driven by the increasing adoption of mobile devices, Smart TVs, and tablets, which enhance content accessibility and personalization. The market's expansion is further supported by the rising internet penetration and the affordability of high-speed internet, facilitating the use of over-the-top devices. Content fragmentation and strategic pricing are key trends, allowing SVOD providers to target specific demographics and capture a larger market share. Additionally, the advent of 5G technology presents new opportunities for innovation and improved media consumption, contributing to the market's robust growth trajectory.

Market Size of Africa SVOD Industry

Africa SVOD Market Summary
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

Africa SVOD Market 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 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 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.

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Africa SVOD Market Size Summary

The Africa SVOD market is experiencing significant growth, driven by the increasing popularity of mobile devices, smart TVs, and tablets. This growth is further fueled by the rising demand for content personalization, as consumers seek to watch shows that cater to their preferences. The market is also benefiting from the expanding access to smartphones and the internet, which creates new opportunities for subscription video-on-demand services. The flexibility and affordability of SVOD services, coupled with the increasing adoption of over-the-top devices, have contributed to the market's expansion. Additionally, the introduction of 5G technology is expected to enhance media consumption by providing faster download speeds and more connected devices, offering lucrative opportunities for SVOD players in the region.

The market is characterized by content fragmentation, which allows broadcasters to target specific demographics and increase conversions. This trend is expected to drive the market further as SVOD firms strategize their pricing to capture a broader audience and gain a competitive edge. The pandemic has also positively impacted the market, with new content offerings attracting more subscribers. Local content production is on the rise, with South African SVOD services like Showmax and DStv Now gaining popularity alongside international giants such as Netflix and Amazon Prime Video. The growing middle class and increased disposable income in the region present fresh opportunities for SVOD companies, while government efforts to improve internet connectivity in rural areas are enhancing internet penetration, further supporting market growth.

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Africa SVOD Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

      1. 1.1.1 Size Estimates and Forecasts for 2021-2028

      2. 1.1.2 Market Size of Revenue in USD Million

    2. 1.2 Average Revenue Per User in USD

    3. 1.3 Industry Ecosystem Analysis

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Assessment of the impact of COVID-19 on the Market

    6. 1.6 Assessment of the impact of the Russia-Ukraine War on the Industry

Africa SVOD Market Size FAQs

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.

In 2024, the Africa SVOD Market size is expected to reach USD 2.10 billion.

Africa SVOD Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)