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By the end of 2024, Statista forecasts that revenues generated by the African video streaming market will hit $2.71bn. It’s expected to achieve a compound annual growth rate (CAGR) of 10.64% between now and 2027 too, hitting potential market revenues of $3.67bn in just over three years’ time.
Although this is a drop in the ocean compared with the biggest video streaming market on the planet – the United States – where revenues of $43.97bn will be generated this year, it’s still a big deal for the continent. With just 11.2% user penetration expected in 2024, rising to a mere 12.8% in 2027, it’s clear to see the undoubted potential of the African streaming space.
It’s not just on-demand video content that Africans are streaming on their multimedia devices either. The fast-growing iGaming market in Africa is also capturing the imagination of casino players. Many are now streaming the live dealer casino games listed by operators, available in high-definition (HD) quality broadcasts for an immersive casino floor-style experience. Many of the latest live dealer blackjack games have quirks that add an extra dimension to users’ gameplay. This includes a raft of blackjack side bets, which can yield separate payouts independent of original bets.
Africa’s on-demand entertainment industry is benefiting from rising connectivity speeds
This has been facilitated by a pleasing trend for several African nations, with connectivity speeds improving rapidly. According to Speedtest’s Global Index update, the Ivory Coast boasts the fastest fixed internet connectivity in the continent, followed by Egypt.
Mobile connectivity is on the rise too, with South Africa leading the way for mobile speeds in Africa, sitting at an average of 48.11 megabits per second. In Zimbabwe, plans are afoot to proceed with a National Broadband Plan to accelerate its own connectivity network.
At a global level, Netflix has been the gold standard for on-demand video content for several years now. However, there’s one live streaming platform that’s catching up with Netflix quickly on the blindside. In some African nations, Showmax is now a credible competitor to Netflix.
How Showmax – and other platforms – are competing well with Netflix and Amazon Prime Video
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Powered by MultiChoice, Africa’s leading media group, Showmax offers a host of films, documentaries, TV series and live sport to stream on demand. It’s also managed to carefully navigate the diversity among African audiences by delivering a blend of localised and global entertainment content.
Showmax’s initial popularity stemmed from its value offering, as well as the ability to download content to watch offline, not to mention its commitment to showcasing the best in African-produced content. Today, Showmax is now active in 44 African markets and its Showmax Pro subscription plan offers direct access to all the biggest Premier League football games, tapping into the massive base of African football fanatics.
Showmax is also doubling down on its market share by securing broadcast deals with Comcast and HBO, ensuring Africans get access to some of the best global entertainment, as well as vast libraries of local content. In the next five years, the platform aims to generate over $1bn in revenue alone, with an ambitious target set of 50 million subscribers. As of November 2023, market researchers Omdia found that Showmax’s market share was seven times larger than Amazon Prime Video, which is now a distant third in Africa’s video streaming popularity stakes.
Showmax isn’t the only African entertainment company to take live streamed content by storm. iROKOtv has cemented itself as one of the leading on-demand platforms for African-made movies and television series. iROKOtv has become the go-to portal for Nollywood and African film titles.
In Nigeria, iBAKATV is also a well-established live streaming platform for Nollywood movies and television programmes. iBAKATV is open to users of all levels, with free and paid-for content available. iBAKATV was the brainchild of Blessed Idornigie, launching the service in the Nigerian capital, Lagos, with the portal producing its own action, rom-com and thriller shows akin to Netflix.
With Showmax, iROKOtv and iBAKATV all leading the way for on-demand streaming in Africa, it’s easy to see why the likes of Netflix and Amazon Prime Video are getting a run for their money.