Sub-Saharan Africa OTT revenues to hit US$640MN by 2022

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Sub-Saharan Africa OTT revenues to hit US$640MN by 2022 --

Mon, 26 Jun 2017 11:36

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Over-the-top (OTT) movies and TV content revenues will reach US$640 million in Sub Saharan Africa by 2022 up by a factor of 12 on 2016 ($52 million), according to Digital TV Research.

Rapid TV News reported that the lion s share of revenues in this immature OTT market will go to South Africa (40%), with Nigeria accounting for 21%, as mobile video takes hold across the continent.

Subscription video-on-demand (SVOD) already the main driver for OTT TV and video will see revenues increase to $475 million by 2022. This equates to 74% of the total, and is 22 times higher than the total in 2016, which represented 40% of total OTT revenues.

It is very important to stress the power that mobile operators have over the future of Sub-Saharan African OTT TV and video, said Simon Murray, principal analyst, Digital TV Research.

Although the total will triple from 2016, we only expect 13 million fixed broadband households by 2022. Fixed broadband is clearly not big enough to sustain a viable OTT sector. However, there will be 486 million smartphone users by 2022.

The mobile operators know that they are in a powerful position. Not only can they give OTT players access to their extensive subscriber pools, but they can also conduct the billing thus foregoing the need for SVOD platforms to insist on credit card payments, added Murray.

OTT service operators could make services more appealing to consumers by cutting high data prices through a distribution partnership with a mobile operator.

There will be an estimated 10.12 million SVOD subs by 2022, up from 525,000 at end-2016 in Sub Saharan Africa. South Africa will remain the market leader, with 2.7 million SVOD subscribers by 2022, closely chased by Nigeria with 2.64 million subscribers, said Digital TV Research.

Source: Rapid TV News

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