Tanzania to see big growth in digital media

October 15, 2014

With increasing access to the Internet and an explosive growth in mobile devices and entertainment, most notably in the Tanzania, businesses must engage in constant innovation in order to keep pace with evolving markets, a new report has projected.In its finding,Tanzania’s growth in the industry will come from spending on digitally delivered media in the next three years, although most spending will continue to be on on-digital media.The country will see the most growth in the entire East African region,more than doubling share of total entertainment and media revenues by 2018 to 36 percent from 14 percent in 2012.Impact of a growing middle class and increased urbanisation in these market will help reverse the fortunes of some segments of the industry in Tanzania.In response, entertainment and media businesses are continuing to heighten their customer insights and transform their business models to become more agile.In commercial capital and East Africa’s most populous city Dar Es Salaam, constant digital innovation has become the industry’s new license to operate.The report forecasts country spending in entertainment and media to rise to $3.1 billion by 2019 from $1.1 billion in 2013.

The growing affluence of a rapidly emerging middle-class consumer with a propensity to spend on entertainment and media experiences combined with improving infrastructure in many high growth cities in the country outside Dar Es Salaam like Mbeya, Arusha, Mwanza, Bagamoyo, Moshi and Dodoma bolsters overall growth rates in a number of key segments.In Tanzania, entertainment and media companies need to invest in developing and distributing content in ways that compel customers to loyalty and take advantage of their tendency to engage in sharing content experiences. Everyone in the industry will need to invest in constant innovation in its products and services, its operating and business models and most importantly, its customer experience, understanding and engagement. The report also said that digital innovation and growth continues to dominate Tanzania’s entertainment and media industry landscape, and the strong momentum behind digital spending will trigger significant tipping points in more mature markets of South Africa,Nigeria and Kenya between now and 2019. The report said that digital entertainment and media spending in Tanzania has been encouraged by widespread ownership of smart devices and will constitute 55 percent of all spending in Tanzania by 2019, almost triple the 2011 levels. It said that Tanzania will be the fastest-growing TV market, with a 23 percent compound annual growth rate in revenues and a market of $858 million in 2019.

Tanzania, having one of the fastest-growing markets for consumer spending, will surpass Kenya in 2019 to become the third-largest market for TV subscription in sub Saharan Africa after Nigeria and South Africa.Understanding new consumers will be key over the next several years as the Tanzania customer base will be more diverse than ever, especially with an increasing number of consumers accessing the Internet through mobile devices.While consumers are increasingly in control of their entertainment experience, they are also confused amid the recent explosion in their media choices. Tanzanian consumers, according to the report, also increasingly want their media and entertainment personalised using the device they want, when they want it. It pointed to consumer’s growing use of the what experts have dubbed “second screen” of smartphones and tablets, to comment on and share the experience of TV and other content with others, often on social media.The report noted advertising spending continues to migrate to new digital platforms. However, in Tanzania, the ability to attract them will depend on offering advertisers, credible, cross-platform metrics that define and measure audience reach, engagement and relevance.

Contador Harrison