PWC has released its Entertainment and Media Outlook report, which shows that South Africa’s total Internet access revenue will increase from R39.4 billion in 2015 to R68.5 billion in 2020.
This is due to fixed and mobile broadband becoming an essential utility in the country.
“Though the forecast compound annual growth rate of 11.7% is lower than previously predicted, this still makes Internet access by far the largest contributor to total entertainment and media spend in South Africa,” said PWC.
Internet advertising in South Africa also continued to grow at a fast rate. Total online advertising spend grew 23.6% in 2015 to reach R3.8 billion.
By 2020, Internet advertising will rise to R8.2 billion – a compound annual growth rate of 16.9%.
The South African video game market is also performing well, and revenue is forecast to grow at a CAGR of 5.6% to reach R3.7 billion in 2020 – up from R2.8 billion in 2015.
Social and casual gaming revenue overtook traditional gaming revenue for the first time in 2015, and will be a key growth area over the next five years – exceeding R2 billion by 2020.