Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Vodacom’s Maziv deal gets makeover ahead of crucial hearing

      18 July 2025

      Takealot taps Mr D to deliver toys, pet food and future growth

      18 July 2025

      Cut electricity prices for data centres: Andile Ngcaba

      18 July 2025

      ‘Oh, Ani!’: Elon’s edgy bot stirs ethical storm

      18 July 2025

      Trump U-turn on Nvidia spurs talk of grand bargain with China

      18 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Digital throttling physical media: PwC

    Digital throttling physical media: PwC

    By Craig Wilson19 September 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Vicki Myburgh
    Vicki Myburgh

    Although South Africa’s entertainment and media spending is expected to experience compound annual growth of 10,9% between now and 2017 — well above the global average of 5,6% — sales of physical books and music will remain flat at 0,4%, new research from PwC shows.

    The numbers are contained in PwC’s latest annual “South African Entertainment and Media Outlook” report.

    Vicki Myburgh, entertainment and media industries leader for PwC Southern Africa, says this is because consumers — particularly youngsters — are becoming increasingly comfortable with piracy and this is the price the music and publishing industries are paying “for not having agile enough business models early enough that would have given consumers what they wanted”.

    Now in its fourth year, the PwC report forecasts advertising and consumer spending across the entertainment and media industry.

    Although sales of physical music continue to stagnate, revenue from live music is growing and is expected to draw level with revenue from recorded music in 2015 and to overtake it thereafter.

    “Digital growth won’t make up for physical decline and won’t grow as fast as other digital sub-sectors like books and magazines,” Myburgh says. She says that although filmed content has made the transition from physical to digital fairly well, the music industry has struggled to adapt.

    By clinging to traditional models and attempting to stymie piracy, the music industry has had to watch revenues fall while consumers have found innovative new ways of acquiring and consuming content.

    “Music has not made transition to digital well,” Myburgh says. “Physical sales are dropping sharply and digital sales haven’t replaced them in terms of revenue.”

    Books, meanwhile, remain “largely unaffordable” according to Myburgh, at least in part because they continue to attract 14% VAT. Another obstacle to physical book sales is that most content is in English or Afrikaans.

    Myburgh says consumers self-publishing e-books and musicians making their music available themselves online also point to the growing trend of democratising distribution, or more specifically, cutting out traditional distributors altogether.

    “Content creators are cutting out distributors and opting for direct relationships with customers,” she explains. “Similarly, distributors are now creating their own content and going straight to consumers with it. Advertisers are also cutting out the traditional agency model and going directly to consumers.”

    Nevertheless, quality content remains crucial and an increase in available content hasn’t made consumers any less discerning.

    “Creators need to find out what people are willing to pay for and how to get it to them,” Myburgh says. This may include considering unconventional models like “bundled subscriptions” which some magazine publishers are trying.

    “The distributors’ challenge is getting consumers the right content, at the right price, on the right platform, at the right time,” she says. “But there’s no doubt content is still king.”  — (c) 2013 NewsCentral Media



    PwC Vicki Myburgh
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleZATS: Ep 276 – ‘Septwember’
    Next Article Wilcocks named to AccessKenya board

    Related Posts

    R20-billion earmarked for expansion of hi-tech Waterfall City precinct

    25 November 2024

    Top 5 cybersecurity threats and safety tips to boost your SME’s readiness

    8 October 2024

    Interest in electric cars in South Africa is surging

    24 July 2024
    Company News

    Vertiv to acquire custom rack solutions manufacturer

    18 July 2025

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.