A report by Digital TV Research has indicated that Internet TV in Sub-Saharan Africa's 35 countries will increase almost 5 fold from $223 million in 2018 to over $1 billion by 2024.
This market will continue to be lead by Nigeria and South Africa the report predicts. This means that almost two-thirds of the value of the industry will be held by these two leading countries. With 89 million internet users in sub Saharan Africa half of which are in Nigeria.
The largest contributors to the OTT (internet TV) African market will come from SVOD (subscription video on demand). This is the Netflix style business model that has proven to be so profitable when applied.
Current subscriptions numbers are right at 3 million people subscribing to SVOD content but this number is expected to rise to over 10.21 million by 2024.
This shows that OTT is growing globally and that revenues will continue to rise even as there is stiff competition from traditional TV.
We may be seeing the first signs of other patterns that have come to pass in more developed markets such as the UK and the United States; OTT devices are already outpacing traditional pay-tv services in terms of growth rate and average revenue per user are expected to grow.
This means it might still be quite some time before you see cord-cutting hitting African markets as a movement but the data is clear that eventually Africa will join the cord-cutting.
The biggest challenges for OTT players in Africa has been the lack of internet connectivity and poor internet speeds as well as data costs. However these challenges are continuing to be met daily as ISP's are beginning to face stiffer competition.
In order to optimize the full potential of video streaming industry in Africa, the telco's will need to drive down their data costs to match up the paying capacity of the massive user base.
What does this mean for broadcasters and video creators in Africa? This means there has never been a better time to get your own Netflix style platform or online TV network. The momentum is in your favor and you would be wise to follow the data.
We specialize in creating Internet TV platforms and our “Channel Manager” is equipped to be able to create Netflix style VOD categories as well as create and schedule playlists. We even have Netflix style templates for both the web and connected TV devices to help you get started quickly and easily.