Sub Saharan Africa’s OTT market shines | OTT | News | Rapid TV News
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The over-the-top (OTT) video market in Sub Saharan Africa is set to accelerate with revenues reaching US$1.018 billion by 2024, up from $223 million in 2018 and will also offer great potential in the long term, according to a  study from Digital TV Research.
Sub Saharan African OTT 14 Jan 2
By 2024, South Africa will account for 40% of revenues for OTT delivered television and film in sub Saharan Africa, with Nigeria taking 22%. Only 15 of the 35 African countries studied will generate OTT revenues of more than $10 million by 2024, said researchers.

Subscription video-on-demand (SVOD) is already the main revenue driver for OTT TV and video in the region. Overall, SVOD revenues are forecast to reach $782 million by 2024; nearly quintuple the 2018 total.

The report forecasts 10.21 million SVOD subscriptions in sub Saharan Africa by 2024, up from 3.03 million at the end of 2018. South Africa will remain the leader, reaching 3.46 million SVOD subscribers by 2024, with Nigeria in second place with 2.56 million.

South Africa and Nigeria will together account for 59% of the region’s SVOD subscribers by 2024. However, this represents a fall from 71% in 2018.

Researchers surmised that OTT subscriptions in the rest of the region are therefore growing faster than in the two main markets. Kenya, Ethiopia and Tanzania are all set to take a greater share of the overall market.

“Market dynamics have shifted over the last year. Despite its relatively high prices, Netflix has consolidated its market leadership. There have been many fewer platform launches, especially on a country level. Furthermore, several multinational players appear to have reined in their ambitions,” said Simon Murray, principal analyst at Digital TV Research.

The top five platforms accounted for 87% of the region’s SVOD subscriptions by the end of 2018, with this proportion to be retained throughout the forecast period, he added.

At the end of last year, some 45% of SVOD subscriptions in sub Saharan Africa were with Netflix. The US streaming giant will retain its market dominance by taking 39% of the 2024 total, reaching 4 million subscribers. In terms of revenues, Netflix will account for 64% of the market share by 2024 similar to that taken across the region in 2018.

In contrast, pay-TV services are expected to reach 45.63 million subscribers in Sub Saharan Africa by 2024.