South African entertainment and media outlook: 2013 – 2018
Fourth South African edition
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Each year, PwC's team of entertainment and media experts generates unbiased in-depth forecasts for 12 industry segments. The fourth annual edition of PwC's South African entertainment and media outlook (the Outlook), covering the forecast period 2013-2018, combines deep knowledge of the local market with a truly global perspective – a powerful tool for understanding critical business issues.
This year, for the first time, we have included Kenya and Nigeria in our forecasts.
- We are pleased to present the fourth annual edition of PwC's South African entertainment and media outlook: 2013-2018 (the Outlook).
- The Outlook reflects the collective wisdom of our team of professionals, who work with entertainment and media companies around the world. It is a unique resource for the industry, offering a five-year outlook for consumer spending and advertising revenues in South Africa and globally, along with insights into the technology, government, political and business trends driving those forecasts.
- Consumer spending on Internet access in South Africa will reach approximately R59.6 billion by 2018, up from R19.8 billion in 2012, a CAGR of 24.7%.
- The South African Internet market is dominated by the mobile segment due to increased investment in cellular coverage by mobile operators and decreasing tariffs. Internet access via mobile devices comprised 89% of the Internet access market (mobile Internet subscribers plus fixed broadband households) and 81% of its revenues in 2012.
- Within the home broadband market, which will grow its subscriber base by a CAGR of 8.6% over the next five years, asymmetric digital subscriber line (ADSL) will be the dominant technology due to demand for higher speeds and its relatively wide coverage.
- All South Africa's major operators have launched Long-Term Evolution (LTE) technology, but coverage remains limited. Vodacom and MTN launched LTE during the latter part of 2012, setting the trend with the primary focus on business and wealthy residential areas before making the technology available to the mass market and expanding the coverage area. The adoption of LTE services across all segments will help to ensure the continued growth of mobile broadband adoption in South Africa.
- The South African Internet advertising market is forecast to generate revenues of R3.7 billion in 2018, up from R1.2 billion in 2012, a CAGR of 25.4%.
- Search is set to remain the primary online advertising format in South Africa, although its share of online advertising will decline slightly over the forecast period from 44% to 41%. Search will grow at a CAGR of 23.9% over the forecast period, driven principally by an increase in Internet penetration.
- Online display advertising is being driven on by the ever-increasing number of Internet, and in particular Facebook, users in South Africa. Despite the fact that mobile will cut into display's share, display will still remain the second-largest Internet advertising segment throughout the forecast period, with the segment set to grow at a CAGR of 22.6%, reaching R1 billion in 2018.
- Classifieds will continue to increase over the forecast period, growing from R112 million to an estimated R209 million between 2012 and 2018. Classifieds will represent the slowest-growing online advertising format over the forecast period, primarily due to some consumers' loyalty to more traditional print formats.
- Mobile advertising is set to grow at a notable CAGR of 37.8% over the forecast period, growing from R189 million in 2012 to R938 million in 2018. This growth will be driven by the increased penetration of LTE-compatible smartphones and more affordable feature phones that provide access to the mobile Internet.
- Mobile technologies dominate the Nigerian Internet market due to wider cellular coverage and more competitive prices.
- The fixed internet market, however, currently generates the largest revenue share (64% of the total in 2012), as it serves the higher-end business segments and residential clients.
- All major operators run 3G networks, which comprise the largest share of the mobile broadband market. LTE is not part of a mass-market mobile broadband strategy. The technology is more likely to be deployed first by smaller players (mostly ISPs).
- Nigerian Internet advertising is set to increase over the forecast period, with mobile advertising being the fastest-growing segment. Video advertising will not take off until after 2018, as fixed broadband connections are currently either too expensive, or not fast enough, for most consumers to properly access the format.
- Internet traffic in Kenya has increased due to the reinforcement of international bandwidth capacity.
- Increased capacity has benefitted both the fixed and mobile segments, with fixed operators pushing FTTx further.
- 3G will dominate the mobile broadband market for a long time, but Kenya is set to pioneer the first LTE open network with a government-led initiative involving all major stakeholders.
- Kenyan Internet advertising is set to grow at a CAGR of 21.9% over the forecast period, growing from a low base of only US$2 million in 2008. Search and mobile will be the main growth-driving segments over the forecast period.
- The continued attraction of TV content and the demand from new consumers will ensure that the pay-TV industry continues to grow despite concerns about over-the-top (OTT) services and piracy.
- The value of the television sector – defined here as revenues from pay-TV, public licence fees and advertising – reached R27.4 billion in 2012. We expect television sector spend to reach the R30 billion mark in 2014, before pushing on past R35 billion in 2018, a CAGR increase of 5.5% over the forecast period of 2013 to 2018.
- Public licence fee revenues – which go towards funding the activities of the South African Broadcasting Corporation (SABC) – will experience a 3.9% CAGR for the forecast period, reaching R1.1 billion by 2018.
- The SABC has been severely weakened by a series of management and governance challenges in recent years, which have contributed to it reporting heavy financial losses.
- South Africa's status as a fast-growing market means its total TV revenue is growing in importance in regional terms. By 2018, it will account for 4.4% of total EMEA television revenues, up from 3.7% in 2012.
- Satellite operator MultiChoice remains the dominant player in pay-TV. However, rival TopTV is now backed by the Chinese operation StarTimes, and is aiming to challenge MultiChoice. Various new market entrants have recently indicated their intentions to launch satellite television services.
- Advertising is expected to experience consistent growth in South Africa between 2013 and 2018, with net television advertising revenues growing at an estimated CAGR of 5.8% to reach R15.1 billion in 2018.
- The regulation of programme and sports rights is becoming a certainty with the new policy on broadcasting expected to be finalised by March 2014.
- The rollout of digital terrestrial TV (DTT) will increase competition in the broadcast sector. However indecision over the choice of technology standard and, more recently, a legal challenge by e.tv have delayed the launch of DTT several times.
- In Nigeria pay-TV penetration is forecast to rise from 17% in 2012 to 24% in 2018.
- The Kenyan pay-TV market is still in its infancy, with penetration of 8% in 2012. However, as competition increases, this will rise to an estimated 15% by 2018. The total of 232 000 pay-TV households at the end of 2012 is expected to more than double to reach 531 000 by the end of 2018.
- Subscriber growth in Kenya is being driven by new players like Wanachi and Zuku that are fuelling competition by diversifying their offerings and cutting prices. Further, competition is now coming from StarTimes, owned by Chinese banks, which is looking to use paid DTT services, thereby increasing competition in the market.
- The market for filmed entertainment in South Africa generated revenues of R2.2 billion in 2012. Fuelled by a growing economy and subsequent higher demand from consumers, the market is forecast to grow by a CAGR of 7.0% over the next five years to reach R3.1 billion in 2018.
- Going to the cinema will continue to be a popular leisure activity in South Africa with box office revenues forecast to reach R835 million in 2018, while cinema advertising will also grow to reach R781 million in 2018.
- The electronic home video segment will be the fastest-growing segment in the South African filmed entertainment market with a CAGR in excess of 24% over the forecast period and revenues exceeding R700 million in 2018. This growth in electronic home video will offset declines in the physical sell-through segment.
- Over-the-top (OTT) delivery of high-quality video services over the Internet could become an important feature of the filmed entertainment market in the next five years, but growth will be limited by relatively low levels broadband access.
- South Africa continues to be a prime film location, offering a combination of solid film infrastructure, attractive financial incentives with a favourable exchange rate, sunny climate and a wide diversity of spectacular locations.
- Nigeria's filmed entertainment market generated revenues of R1.6 billion (US$198 million) in 2012, and, driven by the continuing popularity of the local film industry, Nollywood, revenues will grow to reach R2.2 billion (US$270 million) in 2018, at a CAGR of 6.4%.
- Kenya's filmed entertainment market generated revenues of R353 million (US$43 million) in 2012, but with limited access to broadband and with few cinema screens available, this will rise to just R377 million (US$46 million) in 2018, at a CAGR of 1.3%.
- The radio market in South Africa generated revenues of just over R3.6 billion in 2012, up from R2.65 billion in 2008. Advertising revenues in South Africa's radio market are forecast to continue to grow steadily, with a CAGR of 8.8% overall, topping R5 billion in 2016 and reaching approximately R5.5 billion in 2018.
- Radio lost a share of advertising to other forms of media in the run up to the FIFA World Cup in 2010 and its share bottomed out at 10.9% in 2011. However, radio has bounced back and is forecast to gain share each year from 2013 and account for 12.2% of advertising spend in 2018.
- Radio provides advertisers extensive reach with total audience figures in excess of 31 million listeners and the ability to be heard by a large cross section of the South African society with all age ranges, including both men and women who are regularly listening.
- Zulu is the most common home language among the South African radio audience, with over 7 million listeners, followed by Afrikaans and Xhosa with just over 4 million listeners each. Radio is listened to by speakers of all South Africa's 11 official languages.
- New technologies offer important distribution channels for radio: around 5% of South Africans now listen to the radio online, while approximately 28% listen to radio content on their phones.
- Social media offers two-way communications between the audience and presenters (and advertisers) facilitated by SMS, online, mobile phones, social networks, podcasts and vodcasts.
- Radio stations are looking to establish and engage with communities of listeners by being interactive and being inclusive. Advertisers are able to gauge the audience reaction to their campaigns in real time, though better measurement of online audiences remains a priority.
- Nigeria is an emerging radio market with revenues of R705 million (US$86 million) in 2012. Tight regulation of the country's radio and TV markets has historically held back its development, but growth will continue with the market set to generate revenues of R836 million (US$102 million) by 2018, at a CAGR of 3.4%.
- Kenya is an emerging radio market with revenues of R2.25 billion (US$274 million) in 2012.Total radio revenue grew by a remarkable 215% between 2008 and 2012, reflecting the early growth stage of the Kenyan radio market. This growth is poised to continue albeit at a slower pace than in previous years and will see revenues reach R2.79 billion (US$339 million) in 2018.
- The value of South Africa's music market stood at R2.2 billion in 2012, down from R2.6 billion in 2008. Annual revenue is forecast to remain relatively flat, growing by a CAGR of 0.4% to reach R2.2 billion in 2018.
- Retail spending on physical and digital music and live concerts will experience differing fortunes over the next five years. Retail spending on physical formats will fall at a faster rate than spending on digital will rise, resulting in an annual decline in spending on recorded music. Spending on live music will overtake spending on physical recorded music in 2014 and total recorded-music spending in the following year. By 2018, live music will account for 57.1% of consumer spending on music in South Africa.
- Local repertoire has seen less of a drop-off in sales than international artist releases. Local repertoire is priced lower than international releases and local music remains popular with South African audiences.
- The bestselling download in 2012 was Loliwe by the South African artist Zahara, taken from her debut album of the same name, which was released in 2011.
- International digital music services now operating in South Africa include iTunes, Nokia Music, the subscription services Deezer, Rara.com and Simfy. Microsoft is set to launch its Xbox Music service before the end of 2013. At the time of writing, Apple had not confirmed any dates for the international rollout of its iTunes Radio service, which was launched in the US in September 2013.
- The major international record companies accounted for around three-quarters of total music sales in 2012. Universal Music Group was the leader, ahead of Sony Music.
- South Africa is experiencing the same online piracy problems as other developed music markets around the world. The relatively low broadband penetration in the country, compared with Western European and North American countries, has limited the scale of the problem, but as broadband use grows, then so will online piracy. Legal music distributors have long complained that consumers view piracy as a victimless crime, and education efforts and campaigns have largely failed to change this perception.
- Nigeria's music market generated revenues of R421 million (US$51.3 million) in 2012, up from the 2008 revenue of R369 million (US$45 million). Annual revenue is forecast to grow by a CAGR of 0.9% to reach R441 million (US$53.8 million) in 2018. Digital's share of total spending on recorded music in Nigeria will rise to an estimated 66.6% by 2018, up from 49.0% in 2012.
- Kenya's music market generated revenues of R163 million (US$19.8 million) in 2012, up from R135 million (US$16.5 million) in 2008. Annual revenue is forecast to edge up in 2015 to R170 million (US$20.7 million), but fall back to R165 million (US$20.1 million) by 2018. Consumer spending on digital music will overtake physical spending in 2015.
Consumer magazine publishing
- The South African consumer magazine market will be worth approximately R10.7 billion in 2018, up from R7.7 billion in 2012, having increased by an average compound annual rate of 6.9%.
- The shift away from advertising spend is expected to slow significantly. Advertising spend accounted for 40% of total consumer magazine spending in 2012, down from 52% in 2008. By 2018, it will only fall to 38%, as advertising spend remains strong. Advertising spend will increase from R3.1 billion in 2012 to an estimated R4.2 billion in 2018, increasing at an average compound annual rate of 6.1% over the forecast period.
- While South African publishers have been experimenting with new titles and closing unsuccessful titles, merger and acquisition activity remains stagnant despite significant growth in the market.
- Digital magazine revenues are beginning to gain traction and will grow substantially as fixed and mobile broadband penetration increases along with tablet ownership. Digital circulation revenues will increase more than tenfold from R34 million in 2012 to R370 million in 2018. Digital advertising spend will increase at a slightly slower rate from R31 million in 2012 to approximately R236 million in 2018.
- While overall circulation in South Africa is increasing, readership is decreasing. In 2011, 50.5% of South Africans read at least one magazine in the year, but in 2012 this fell to 46.9%. Readership of individual magazines also fell, with fewer magazines reaching the threshold of 1 million readers per issue than in 2011. This is due to the changing demographics in South Africa, with a growing middle class resulting in an increase in magazine purchases by young professional couples or singletons. With more magazines being read in smaller family units, overall readership has declined at the same time as circulation has increased.
- Growth in the middle class has also led to increased advertising revenues, as brands seek to target households with growing disposable incomes. Digital advertising in particular will grow by a forecast CAGR of 50.4% as advertisers look to target more affluent households.
- The Nigerian consumer magazine market will see a CAGR of 9.2% over the next five years as the country's economy experiences robust growth, bringing with it increased consumer spending on entertainment. However, poor infrastructure in the country will limit the distribution of physical magazines and therefore growth.
- Consumer magazine revenues in Kenya will grow at a CAGR of 9.0% in the next five years as an emerging middle class purchase magazines. Print will dominate, however, and digital will comprise just 3% of the total circulation revenues, in 2018.
- Real GDP in South Africa is forecast to grow by an average of 3.8% per annum over the next five years, boosting consumer spend and job creation in the country and providing encouragement for investments in new advertising campaigns. Urbanisation in South Africa continues to rise by over a million people per year and this will boost the newspaper market.
- South Africa's newspaper industry is buoyant and diverse. Advertising revenue will grow from R7.5 billion in 2012 to an estimated R10.1 billion in 2018, a CAGR of 6.2%. Circulation revenues are forecast to grow modestly, at a CAGR of 2.2%, but the whole market will be boosted by spend on advertising, as newspapers attract new untapped audiences.
- Readership of daily newspapers remains constant with 31% of the population aged above 15 reading a daily newspaper in December 2012. Print circulation revenues are forecast to recover from a 2% drop in 2011 to reach R2.7 billion in 2018.
- Total circulation spending is expected to recover fully from the effects of the recession in 2009 reaching R2.7 billion in 2014, which is approximately the same level of revenue achieved in 2008.
- Digital circulation revenues are forecast to grow from R13 million to reach R215 million in 2018. But contrary to markets with higher broadband penetration, the majority of South Africa's newspaper readers still prefer print over digital news content.
- Print advertising revenues in South Africa will reach approximately R9.6 billion in 2018, while digital advertising is forecast to grow by a 27% CAGR to reach R506 million in 2018. In due course publishers will need to adjust their business models towards digital subscriptions, but digital's share of circulation revenues will remain small, reaching only 7% in 2018.
- After declining revenues from 2008 until 2012, the Nigerian newspaper market is forecast to stabilise at R1.9 billion (US$236 million). Revenues for circulation and advertising are moving in opposite directions with circulation forecast to see average annual growth of 2.5% while advertising revenues will decline by an average of 4.3% per annum.
- Kenya's newspaper sector is resilient and set to expand. Its advertising revenue has grown from R336 million (US$41 million) in 2008 to R1.1 billion (US$136 million) in 2012 and will continue growing to reach R1.5 billion (US$184 million) in 2018, a CAGR of 6.2%. Circulation revenues will also grow, but at a slower rate at a CAGR of 3.6%.
Consumer and educational book publishing
- The educational and consumer books market in South Africa has declined in recent years, falling from R4.1 billion in 2008 to R3.6 billion in 2012. However, with a rise in the sale of consumer books – their share of the South African books market is forecast to increase from 39% in 2012 to 43% in 2018 – revenues for the market are forecast to stabilise, rising slightly to reach R3.7 billion in 2018, at a CAGR of 0.4%.
- A decline in spending on educational books, from R2.8 billion in 2008 to R2.2 billion in 2012, has affected the South African book market as a whole, but spend on consumer books has been rising since 2011 and is forecast to reach R1.6 billion in 2018, up from R1.4 billion in 2012, at a CAGR of 2.5%.
- Spending on educational books remained flat at R2.2 billion in 2012 and is forecast to continue falling over the next five years to R2.1 billion in 2018, at a CAGR of -1.1%.
- New players are invigorating the e-book market. Apple is entering the educational e-book market and its service is expected to launch in 2014. The Core Group, official Apple distributer in South Africa, launched the first educational e-book store in South Africa in February 2013, with 600 titles aimed at servicing the 180 schools in South Africa that are already using iPads in their classrooms.
- The consumer book market in South Africa continues to face a number of limitations. South Africa's population of almost 53 million people does not have uniform access to consumer books. According to the South African Booksellers Association, there are only about 1 600 bookshops and only one-third of these are in rural areas, which, coupled with the lack of broadband connections, means that reading books is a minority pastime in the country.
- Electronic books are forecast to account for 8% of the consumer market in 2018, up from 1.5% in 2012. However, the impact of e-books on the South African market overall will remain limited in the next five years and the vast majority of total book revenues, especially in the educational market, will still come from the sale of printed books in 2018.
- The books market in Nigeria is forecast to stabilise after rapid growth in 2010 and 2011, seeing a small increase in revenues from R181 million (US$21.6 million) in 2012 to R182 million (US$22.2 million) in 2018.
- The books market in Kenya is showing signs of maturity after rapid growth in 2010 (7.7%) and 2011 (17.1%) and is forecast to remain in the region of R304 million (US$37 million) throughout the next five years.
- South Africa's B2B market was worth just over R8 billion in 2012, representing 10.6% year-on-year growth. The B2B market will continue to expand with a CAGR of 8.7% over the forecast period, reaching approximately R12.2 billion in 2018.
- The business information and trade show segments will be the market's growth engines, increasing at a CAGR of 8.6% and 9.2%, respectively, over the forecast period. Revenues generated by South Africa's business information market will exceed R5.4 billion in 2018, when it will account for 45% of the total market, while trade show revenues will reach R4.1 billion, 33% of the market.
- Growth in the business intelligence segment will be driven by a variety of new research avenues to help enhance customer insights. These include data analytics, monitoring of social media, use of mobile device research and behavioural analysis. Buyers of research will consider the do-it-yourself route for research through better use of business intelligence.
- Nigeria's B2B market will grow by an estimated CAGR of 5.9% and be worth more than R1.6 billion (US$195 million) in 2018. The professional books segment will account for 44% of Nigeria's total B2B revenues.
- Kenya's B2B market will be one of the fastest-growing markets in the world with a CAGR of 8.2% and is forecast to reach R722 million (US$88 million) in 2018. Business information will account for more than 45% of revenues.
- South Africa's OOH segment is worth R3.7 billion in 2012, South Africa's OOH segment will grow by an estimated 7.2% CAGR to R5.2 billion in 2018, accounting for 11.5% of total advertising spend. Major infrastructure projects, including the launch of the Gautrain and improvements to OR Tambo International Airport have helped boost growth in South Africa's OOH market.
- A significant sector for the advertising market, outdoor media, in particular billboards, are subject to increasing regulation and difficulties in measuring their effectiveness. This represents a challenge to the overall OOH market Taxis are estimated by the South African Advertising Research Foundation (SAARF) to be the most viewed channel for OOH advertising, marginally ahead of street poles and billboards. TransitTV, which features news, travel and advertisements, contributes to this high viewing rate by broadcasting to commuters inside transport hubs and in taxis, reaching millions of viewers a month.
- The emergence of digital signage will be intrinsic to the rise of OOH advertising. Its position as a medium that is able to provide dynamic content and deliver a targeted message will enable advertisers to respond to market conditions and trends quickly.
- OHMSA (Out of Home Media South Africa) is conducting research with SAARF in which the movements of more than 4 000 people will be monitored. The results will be fed into a study to improve measurement into the efficacy of OOH advertising.
- Nigeria's OOH market will be worth approximately R2.3 billion (US$284 million) in 2018, growing by a CAGR of 6.8%. An important driver of this growth will be the improving macroeconomic environment in Nigeria and a rise in market investment.
- The Kenyan OOH market will be worth a forecast R1.3 billion (US$153 million) in 2018, growing by a CAGR of 9.4%. An increasingly urbanised market will help drive this growth, as will increased use of traffic hotspots and airline travel with airports becoming a key site for OOH advertising.
- The market for video games in South Africa generated revenues of R2.2 billion in 2012. Fuelled by growth in digital and mobile gaming in particular, revenues are forecast to grow by a CAGR of 9% to reach R3.3 billion in 2018.
- With a low level of broadband access, gaming services like online gaming, and even the digital distribution of console and PC games in South Africa, lag behind more mature markets such as those in Western Europe. South Africa's early strength in the PC gaming market and a robust multi-generational console market offer a stable platform for future gaming and a launch pad to the rest of the continent.
- It is however mobile gaming that will turn from today's emerging phenomenon into the star of the show, reflecting South African consumers' commitment to mobile devices as their primary interactive entertainment platform.
- Tablets, still a largely untapped market, will boost mobile gaming over the medium term as they offer more compelling and complex gaming experiences, combined with the convenience of mobile broadband and a 'play anywhere' ethos.
- The multifunctionality and convenience of tablets and smartphones is expected to result in the demand for hand-held consoles diminishing in the near future.
- The Nigerian video games market is all about either mobile gaming or online gaming, but will see rapid growth, albeit from a very small base. The games market generated revenues of R533 million (US$65 million) in 2012, but this is forecast to rise to R1.4 billion (US$170 million) by 2018, a CAGR of 21.5%.
- In Kenya, the late development of broadband and the relatively high cost of PCs and consoles means that its gaming market is also dominated by mobile and online games. Revenues in 2012 were R336 million (US$41 million), but this will rise to an estimated R829 million (US$101 million) by 2018, a CAGR of 20%.
- Revenues generated from total sports spending in the South African market will be R19.5 billion in 2018, up from R13.9 billion in 2012, a CAGR of 7.1%. This growth will be driven primarily by the increased revenues from media rights and sponsorships around major sporting events and teams in South Africa.
- Gate revenues will continue to increase steadily throughout the forecast period, rising from R4.1 billion in 2012 to R5.0 billion in 2018, a CAGR of 4.1%. They will, however, continue to fall short of the revenues generated in 2010, which were boosted signifi cantly by the 2010 FIFA World Cup.
- Revenues from media rights are set to grow at a signifi cant rate throughout the forecast period, rising from R2.5 billion in 2012 to R4.3 billion in 2018, a CAGR of 12.0%, although in the near term they will also continue to lag the revenues generated in 2010 around the FIFA World Cup. The South African Broadcasting Corporation (SABC) and SuperSport are the two primary contributors to local media rights revenue in South Africa.
- Sports sponsorship in South Africa will grow at an estimated CAGR of 9.5% in the next fi ve years, rising from R4.6 billion in 2012 to R7.3 billion in 2018. By 2015, revenues will exceed those generated during the FIFA World Cup in 2010. South Africa has benefi tted from the fact that many of its sports are broadcast internationally, meaning that brands have the potential to reach a wider audience.
- PwC | 259 Merchandising will remain the smallest sporting sub-segment. It generated R614 million in 2012 and this is forecast to rise to R657.2 million in 2018, a CAGR of 1.4%. Its revenues will remain closely linked to the rolling out of major sporting events.
- The sports betting market will generate revenues of approximately R2.2 billion in 2018, up from R2.0 billion in 2012, a CAGR of 1.8%. Its growth over the next fi ve years will largely be as a result of the improving economic conditions in South Africa.
- The Nigerian sports industry will generate estimated revenues of R5.9 billion (US$722 million) in 2018, up from R3.6 billion (US$433 million) in 2012, a CAGR of 10.8%. This growth can be attributed to factors such as improving economic conditions and an increase in household and mobile broadband penetration.
- Kenya's sports industry will generate revenues of R1.2 billion (US$150.4 million) in 2018, up from R650 million (US$79.2 million) in 2012, a CAGR of 13.7%. This growth will come as a result of improving economic conditions and a subsequent increase in mobile and household broadband penetration. Recent increases in sponsorship and media rights refl ect the positive developments in the Kenyan sports market.