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TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE REGIONS OPPORTUNITIES ? 05/20/2020 Follow us

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Page 1: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

TV BROADCASTERS IN SSA : WHICH MODEL TO

LEVERAGE THE REGION’S OPPORTUNITIES ?

05/20/2020

Follow us

Page 2: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

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Page 3: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

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Page 4: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

POPULATION BY COUNTRY2019 – Million inhabitants

46 COUNTRIES

1.1 BILLION INHABITANTS

230 MILLION HOUSEHOLDS

41% URBAN POPULATION

43% ELECTRIFICATION RATE

SUB-SAHARAN COUNTRIES SPECIFICITIES

5 countries41 countries

POPULATION DISTRIBUTION IN 2019

Source: Dataxis

250

0

Nigeria

Ethiopia

DRC

South AfricaTanzania

Other countries

CHARACTERISTICS OF THE REGION

MALI NIGERSENEGAL

BURKINA FASO

NIGERIA

DEM. REP. CONGO

ETHIOPIASOMALIA

ERITREA

DJIBOUTI

SOUTH AFRICA

NAMIBIA

ANGOLA

MOZAMBIQUE

MADAGASCAR

ZAMBIA

ZIMBABWE

CHAD

CENTRAL AFRICAN REPUBLIC

CAMEROONGHANA

TOGOBENIN

GABON

GUINEA

TANZANIA

KENYA

UGANDA

LESOTHO

ESWATINI

RWANDA

BURUNDI

THE GAMBIA

MALAWI

IVORY COAST

SIERRA LEONE

LIBERIA

BOTSWANA

GUINEA BISSAU

EQUATORIAL GUINEA

Source: World Bank

Page 5: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

GDP PER CAPITA BY COUNTRY2019 – Current USD

SIGNIFICANT ECONOMIC DISPARITIES WITHIN THE REGION

TOP 3 ECONOMIES IN THE REGION2019 – Current USD

3 countries43 countries

POPULATION GDP

14% 2%

WEIGHT OF SUB-SAHARAN AFRICA IN THE WORLD2019 – global penetration

Source: World Bank

>10 000

0

Nigeria

South Africa

Angola

Other countries

Source: World Bank

Page 6: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

TV PENETRATION BY COUNTRY2019 – Share of households

TV MARKET STRUCTURE

HOUSEHOLDS STRUCTURESub-Saharan Africa - 2019

Source: Dataxis

230

98

33

0

50

100

150

200

250

HOUSEHOLDS TV HOUSEHOLDS PAY TVHOUSEHOLDS

Mill

ion

s

100%

0%

34%Pay-TV

penetration

43%TV penetration

Source: Dataxis

Page 7: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

MAIN PROVIDERS OF TERRESTRIAL FTA CHANNEL PACKAGES

MAIN PROVIDERS OF FREE SATELLITE CHANNEL PACKAGES

FREE TV: DTT MIGRATION AND DTH DEVELOPMENT

EVOLUTION OF FREE RECEPTION BY ACCESSNumber of households

Source: Dataxis

0

5

10

15

20

25

30

35

2017 2018 2019 2020

Mill

ion

s

Analogue terrestrial FTA TV households

Digital DTH FTA TV households

DTT FTA TV households

Page 8: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

STATUS OF DIGITAL MIGRATION BY COUNTRY2020

DIGITAL MIGRATIONNumber of households

DIGITAL MIGRATION DELAYED IN MANY COUNTRIES

0

20

40

60

80

100

120

140

2017 2018 2019 2020 2021 2022 2023 2024

Mill

ion

s

Other TV households

DTT FTA TV households

Analogue terrestrial FTA TV households

Source: DataxisSource: Dataxis

completed

ongoing

not started

Page 9: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

AN UNDERDEVELOPED TV ADVERTISING MARKET

FREE CHANNELS REVENUESUSD – Sub-Saharan Africa

Source: Dataxis

- $1.1B TOTAL RESOURCES OF FREE CHANNELS IN 2019

- 5% GROWTH 2018-2019

- 35% WEIGHT OF THE SOUTH AFRICAN MARKET IN THE

TOTAL GENERATED IN THE REGION

890 Mtotal

advertisingrevenues

17%public funding

FREE CHANNELS REVENUES BY COUNTRYMillion USD – 2019

0

100

200

300

400

500

600

700

800

900

1000

2018 2019

Mill

ion

s

Total net TV advertising revenues TV public funding

0

50

100

150

200

250

300

350

400

Page 10: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

National public channels

SSA FREE CHANNELS: NATIONAL PUBLIC CHANNELS

SHARE OF GOVERNMENT FUNDING IN TOTAL INCOME2019 – selected countries

0% 20% 40% 60% 80% 100%

South AfricaAngolaZambiaCongo

TanzaniaBotswana

UgandaZimbabwe

GabonGhana

MalawiSenegalRwanda

Burkina FasoDRC

NigeriaIvory Coast

MaliMozambique

KenyaCameroon

Burundi

TV public funding Advertising revenuesSource: Dataxis

implemented

not implemented

TV LICENSE FEE BY COUNTRY2020

Page 11: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

National private channels

60%

40%

Public channel Private channel

ADVERTISING REVENUES BY TYPE OF CHANNEL2019 – Sub-Saharan Africa

SSA FREE CHANNELS: NATIONAL PRIVATE CHANNELS

0

100

200

300

400

500

600

700

800

900

1000

2019 2020 2021 2022 2023 2024 2025

Mill

ion

sTotal net TV advertising revenues

BROADCASTERS FREE-TO-AIR REVENUESUSD – Sub-Saharan Africa

Source: Dataxis

Page 12: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

daily

4-6 weeks

6 months

non-recurring survey

no independent service

TV AUDIENCE MEASUREMENT: A BRIGHTER FUTURE?

MAJOR AUDIENCE MEASUREMENT INSTITUTES IN THE REGION - 2020

FREQUENCY OF TV AUDIENCE MEASUREMENT 2019 – Subsaharan Africa

Source: Dataxis

Page 13: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

ONLINE DISTRIBUTION IN ITS EARLY STAGES

SSA CONNECTIVITY GROWTH Subscriptions - 2014 - 2019

0 50 100 150 200 250 300 350 400

2014

2015

2016

2017

2018

2019

Millions

Mobile internet Fixed wireline Internet

ROYAL MEDIA GROUP (CITIZEN TV) – VIUSASA SVODKenya

Source: Dataxis

SABC AND ETV – PARTNERSHIP WITH VIUSouth Africa

Page 14: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

FREE DIGITAL MARKET: WHAT OPPORTUNITIES?

190

218

0

50

100

150

200

250

2018 2019

Mill

ion

s

FACEBOOK ACTIVE USERSSub-Saharan Africa

1

8

17

36

SSA South Africa World - excl.Europe and N.

America

World

DIGITAL ADEX PER CAPITACurrent USD - 2018

Source: Dataxis

0

50

100

150

200

250

2018 2019

Mill

ion

s

Rest of Africa

South Africa

160

MONTHLY YOUTUBE USERSSub-Saharan Africa

Source: DataxisSource: Dataxis

190

Page 15: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

OVERVIEW OF PAY TV CHANNELS OFFER IN SSA

MAIN PAY-TV CHANNELS EDITORS BY TYPE OF PLAYERSNumber of channels – Sub Saharan Africa

THE 20 MOST DISTRIBUTED PAY-TV CHANNELSNumber of households – Sub Saharan Africa – 2019

Source: Dataxis

0 10 20

CBS Reality

National Geographic

Cartoon Network

BET International

Star Life

Discovery Family

PBS Kids

MTV Base

Eva English

AfricaMagic Family

M-Net Movies Zone

AfricaMagic Epic Movies

Nickelodeon

Fox Life

SuperSport Blitz

Disney Junior

E! Entertainment

Nat Geo Wild

CNBC Africa

JimJam

Millions

Pay-TV operator

US Network

Source: Dataxis

7

8

10

14

15

18

23

23

55

AMC Networks

WarnerMedia

NBCUniversal

Canal+

ViacomCBS

Discovery Networks

Disney Networks

Startimes

Multichoice

Page 16: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

CONCLUSION

INHERANT WEAKNESSES OF THE TV ADVERTISING MARKET

• Lack of modern broadcast infrastructures

• No or few audience measurement services

• Difficulty to meet advertisers standards in term of content quality

DEVELOPMENT OPPORTUNITIES

• Growing digital TV diffusion

• Online and OTT strategies, in particular on free segments

Page 17: TV BROADCASTERS IN SSA : WHICH MODEL TO LEVERAGE THE … · 2020-05-21 · 1.1. BILLION INHABITANTS. 230 . MILLION HOUSEHOLDS. 41% . URBAN POPULATION. 43% . ELECTRIFICATION RATE

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