SVOD to drive African OTT revenues to $1.7BN by 2026 | Media Analysis | Business
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Mainly driven by a strongly growing subscription video-on-demand sector, African OTT movie and TV episode revenues will reach $1.725 billion by 2026, up from $392 million in 2020, according to a study from Digital TV Research.
Showmax 1 Oct 2020
The Africa OTT TV and Video Forecasts report noted that SVOD would be the main revenue driver by a long way with its revenues set to reach $1.480 billion by 2026 leaping massively from the $299 million in 2020. While Netflix was said to have accounted for 57% of the region’s SVOD subscribers by end-2020, its share is forecast to fall to 44% by 2026. This would be a total of 6.26 million subscribers, more than triple that of the total in the region for 2020. Disney is not expected to start in the region until 2022, although it will have 3.13 million paying subscribers by 2026. Apple TV+ is forecast to grow from 9,000 to 136,000.

Looking at rivals to the global SVOD giants, Digital TV Research showed that regional players Showmax and MyCanal have upped their game in face of the added competition. Even though these SVOD platforms are emerging in their own right, the study said they have been aided by the fact that both of these platforms have sister pay-TV companies. Showmax is expected to grow from 668,000 customers to 1.352 million by 2026 while MyCanal is set to grown from zero to 622,000.

In terms of key territories, the Africa OTT TV and Video Forecasts report noted that South Africa will contribute a third of the region’s revenues by 2026, with Nigeria bringing in a further fifth.