A new report shows that subscription music streaming is set to overtake digital music purchases.
The Rapport reported the prediction based on PwC’s entertainment and media outlook 2017 report. The report stated that digital streaming revenues are set to dwarf other forms of income for the industry.
The shift to this revenue model makes the music industry the success story of 2016, said Vicky Myburgh – head of entertainment and media at PwC Southern Africa.
In South Africa, income from digital music streaming reached R118 million last year, while music downloads earned R165 million.
By 2021, PwC said music streaming would earn the industry R518 million, while downloads would account for R70 million.
It also predicted that by 2021, the income from entertainment and media will grow to R177.9 billion – compared to R132.7 billion in 2016.
PwC associate director Charles Stuart said the global video game market is changing, with revenue from social and informal games beginning to overtake the console market.
The high cost of traditional video gaming is a factor in this shift, he said.
Revenues from social and informal games tripled in South Africa between 2012 and 2016, and this year revenues from this stream is already set to overtake traditional video games.
Stuart said the rise of smartphones in South Africa has put “informal games” within reach of millions of South Africans.
In 2016, the market for video games in South Africa was R2.1 billion. In 2021, it will grow to R5.4 billion – of which R3.7 billion will be the informal gaming sector.