Streaming platforms are gaining strong momentum in South Africa, Nigeria and Kenya, fuelled by improved mobile connectivity and shifting consumer viewing habits.

According to PwC’s latest Africa Entertainment and Media Outlook – Perspectives Report 2025–2029, digital demand is reshaping the market, with so-called “over the top” (OTT; streaming) services growing at a compound annual growth rate (CAGR) of 6.7% in South Africa, 8% in Nigeria and 11.2% in Kenya.

Streaming platforms are expected to continue their robust growth in the three countries for the foreseeable future, progressively gaining ground in relation to traditional broadcast TV.

The report said the OTT market in South Africa is set to grow at a 6% CAGR from consumer revenue of US$226-million (R3.9-billion) in 2024 to $302-million (R5.4-billion) by 2029. Kenya is poised to grow at 8.5% and Nigeria at 8.3%.

“This growth is fuelled by expanding internet penetration, improved mobile network coverage (particularly 4G and emerging 5G deployments) and increasing consumer preference for on-demand, flexible content consumption,” it said.

“The ongoing urbanisation and rising middle-class populations in these countries will drive broader adoption of OTT services, on mobile devices, although smart TV adoption will also increase.”

While there will be increased market penetration, the document said this will not be without its challenges. In Nigeria and Kenya, these include data affordability and unreliable internet connectivity – particularly outside major cities.

Inflationary pressures

On costs, the introduction and expansion of ad-supported streaming tiers – which are already well-established in many global markets – are likely to take hold more broadly for the rest of the decade. These tiers offer lower-priced subscription options for streaming services that include advertisements.

“This will allow platforms to attract price-sensitive users who may not afford subscription fees, broaden access and accelerate penetration. The gradual roll-out of these ad-supported options will also help OTT providers maintain competitive pricing, limiting frequent subscription price hikes despite inflationary pressures seen globally,” the report said.

Read: Internet to drive SA media, entertainment sector growth

PwC said that in South Africa, financial constraints are a major reason for subscription cancellations, prompting platforms like Disney+ to introduce promotional pricing to retain users.

Mobile-specific plans have also gained traction, with 75% of South African users consuming content via smartphones. However, bundling with telecommunications providers, a common strategy in markets such as Latin America and North America, remains underutilised in Africa. Bundling includes offering a single package of two or more services, such as internet, TV and mobile under one price and a single bill.

Last year, the combined OTT subscription base across South Africa, Kenya and Nigeria exceeded five million, with South Africa representing over 75% of total subscriptions. By 2029, this figure is projected to grow by an additional 1.9m subscriptions.

“South Africa is expected to maintain a more mature OTT ecosystem through to 2029, supported by higher broadband availability and smart TV penetration compared to its regional peers. Connected TV devices will see significant uptake, especially in urban and affluent households, leading to greater consumption of streaming content on large screens.”

Globally, streaming subscription revenue is forecast to exceed traditional subscription revenue for the first time in 2027.

The report said that although mobile-first, on-demand content is setting the pace, traditional TV still matters, especially when it comes to live events in sports and news.

The growth in digital platforms has also seen a shift in advertising.

Nigeria is expected to reach 84% digital ad spend by 2029, surpassing global benchmarks. South Africa and Kenya are close behind at 74% and 64%, respectively. Retail display and paid search are among the fastest-growing segments. – © 2025 NewsCentral Media

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