Business Quest 
Elsa Lunani,Head of DStv Business & Digital Products Manager, Multichoice Kenya
By Elsa Lunani
The entertainment and media industry is currently experiencing transformations, resulting in turbulence and uncertainty about the future among its players.
Social media, sluggish consumer spending, changing customer habits, expectations for comprehensive user experiences, and technological advancements like artificial intelligence (AI) are some of the factors that have sent shockwaves through the industry.
Traditional media, including TV, newspapers, and radio, have also had to go back to the drawing board to find innovative strategies that will enable them to brave the storm and stay afloat in the digital age.
In film, for instance, technologies such as AI and Virtual Reality (VR) have already taken over the filmmaking process, from scriptwriting and editing to casting and distribution.
VR is reshaping the film industry into an interactive journey, revolutionizing storytelling dynamics and captivating audience engagement. Simultaneously, the evolution of film distribution and consumption patterns has been equally profound, fueled by the emergence of the internet and the ascent of on-demand streaming platforms.
AI has not spared the music industry either. AI-powered songwriting tools are now helping musicians generate new melodies, chord progressions, and lyrics. The rise of streaming platforms has revolutionized how music is distributed and consumed, and AI is at the forefront of optimizing this experience.
Technology has also accelerated digital content piracy, which threatens the economy by denying the government taxes, hurting the creative industry, and diminishing the revenue of media houses.
Despite these disruptions, projections show that the future is not as bleak as we might think. In fact, projections show that the entertainment and media industry in Kenya, including newspapers, consumer magazines, and books, is promising.
According to the Africa Entertainment and Media Outlook 2023-2027 by PricewaterhouseCoopers (PwC), all entertainment and media segments in Kenya will see growth, reaching Sh412 billion by 2027. Kenya will witness the biggest growth in the next three years compared to South Africa and Nigeria.
Questions have often arisen about the consumption of entertainment and media in Kenya. How much local music do people listen to or play on radio stations? How many people watch local TV channels for news?
According to the 2024 Economic Survey report by the Kenya Bureau of Statistics (KNBS), the value of the entertainment and arts sector showed steady growth: it was Sh22.4 billion in 2017, Sh24.5 billion in 2018, Sh27.1 billion in 2019, Sh19.9 billion in 2020, Sh23.4 billion in 2021, Sh28.3 billion in 2022, and Sh32.2 billion in 2023.
These figures indicate an annual increase in revenue from the entertainment and media industry, highlighting its significance as one of the pillars of the economy.
According to the outlook, Over-The-Top (OTT) streaming services like Showmax or DStv Stream and internet advertising will be the fastest-rising segments in Kenya. OTT revenue will double from Sh771 million in 2022 to Sh1.8 billion. The high penetration of the internet and smartphones in Kenya makes the country a fertile ground for OTT.
Kenyans are increasingly acquiring smartphones, indicating that OTT is the next big thing for the entertainment and media industry. For instance, Kenyans acquired 2.9 million smartphones between January and September 2023, bringing the total number of smartphones in the country to 33 million. This means over 10,000 smartphones are acquired per day. Local music, radio, podcasts, traditional TV, video games, and esports are also poised for growth in the next three years.
Live music ticket sales revenue is also expected to grow in Kenya, indicating that the music scene is promising.
While the industry faces challenges from technological disruptions and piracy, its future prospects remain promising. Embracing emerging technologies like AI and leveraging government support will be crucial for sustaining growth and expanding revenue streams in the evolving landscape of entertainment and media.
The writer is the Head of DStv Business & Digital Products Manager, Multichoice Kenya
