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Nigeria, South Africa, Kenya split paths as OTT booms in region

The African entertainment and media (E&M) industry is entering a transformative phase, with over-the- top (OTT) video services emerging as one of the most disruptive forces across the continent.

From Nigeria’s meteoric rise to South Africa’s steady digital pivot and Kenya’s mobile-first acceleration, OTT platforms’ incursions are redefining how audiences consume content, how advertisers allocate budgets, and how traditional broadcasters fight to retain relevance.

Nigeria stands out as the continent’s most dynamic OTT battleground. According to PwC’s Africa Entertainment and Media Outlook 2026–2030, Nigeria’s OTT video revenue is forecast to grow at a staggering 20.4 per cent compound annual growth rate (CAGR), expanding from $31 million in 2025 to $78 million by 2030. This makes Nigeria the fastest-growing OTT market worldwide.

Several factors underpin this surge. Telecom partnerships are lowering data costs and bundling streaming access, making services more affordable for a youthful, mobile-savvy population. Light-touch regulation has also enabled platforms to innovate with locally tailored offerings. Nollywood, already a global cultural export, is leveraging OTT platforms to reach both domestic and diaspora audiences. In 2025, local films accounted for nearly half of Nigeria’s box office revenue, a milestone that signals the strength of homegrown content in fueling digital adoption.

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According to the 15-page document, OTT’s rise in Nigeria is not occurring in isolation. Gaming, another digital segment, is expanding from $286 million to $431 million (8.5 per cent CAGR), approaching the scale of internet advertising revenue. Together, these shifts highlight Nigeria’s broad-based digital growth, where multiple categories are expanding simultaneously rather than redistributing value from traditional formats.

It noted that South Africa, the region’s largest and most mature E&M market, presented a different picture. While overall industry growth is more modest at 3.2 per cent CAGR, OTT video is one of the standout segments, projected to grow from R6.4 billion in 2025 to R9.2 billion in 2030 (7.6 per cent CAGR). This expansion places OTT alongside internet advertising as the fastest-growing categories in the country.

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South Africa’s advanced communications infrastructure and established advertising ecosystem provide fertile ground for OTT adoption. Subscription streaming services are thriving, supported by strong demand for local music and video content. By 2025, local artists accounted for 70 per cent of the top 10 most-streamed acts, underscoring the cultural resonance of domestic talent in digital spaces.

Yet, PwC noted that South Africa’s OTT growth is tempered by the decline of traditional television, which is projected to shrink from R34.7 billion to R28.8 billion by 2030 (3.7 per cent CAGR). The challenge, it noted, is less about audience expansion and more about shifting consumption patterns. As viewers migrate to streaming platforms, broadcasters must adapt their monetisation models to balance subscription revenues with advertising opportunities in digital environments.

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Kenya’s E&M market, though smaller in absolute terms, is experiencing robust growth at 5.0 per cent CAGR, outpacing South Africa. OTT video is the fastest-growing segment, forecast to nearly double from $15 million in 2025 to $31 million in 2030 (15.9 per cent CAGR). This trajectory reflects Kenya’s position as one of Africa’s leading mobile-first digital economies.

PwC observed that connectivity remained the backbone of Kenya’s media ecosystem, accounting for more than three-quarters of the industry’s total revenue. With mobile penetration rising and digital payments widely adopted, OTT platforms are finding fertile ground among highly engaged online audiences. Social media platforms such as TikTok are playing a pivotal role in driving video consumption and blurring the lines among entertainment, advertising, and community engagement.

Interestingly, Kenya differs from Nigeria and South Africa in that traditional television and publishing remain positive-growth categories rather than contracting sectors. Both are projected to grow faster than music, radio, and podcasts, suggesting that Kenya’s media consumers are embracing a hybrid model where digital and traditional formats coexist and expand simultaneously.

Based on the report, OTT video incursions across Nigeria, South Africa, and Kenya revealed three distinct models of digital transformation. For instance, in Nigeria, there has been explosive growth driven by demographics, affordability, and Nollywood’s global appeal. OTT is not just supplementing traditional formats but rapidly becoming a central pillar of entertainment consumption.

South Africa has steady growth within a mature ecosystem. OTT is expanding but largely redistributing value from declining television revenues, highlighting the challenges of transition in established markets. In Kenya, there is balanced growth across both traditional and digital categories. OTT’s rise is powered by mobile penetration and social media integration, but legacy formats continue to hold their ground.

Across all three markets, connectivity remains the foundation of digital growth. By 2030, 5G penetration is forecast to reach 86.8 per cent in South Africa, 51.6 per cent in Kenya, and 35.3 per cent in Nigeria, enabling richer digital experiences and supporting the bandwidth demands of streaming, gaming, and social platforms. Internet advertising is also surging, with Kenya recording the fastest growth globally at 14 per cent CAGR, underscoring the symbiotic relationship between audience engagement and monetisation.

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