Between 2016 and 2021, Sub-Saharan Africa will be the world’s fastest-growing TV market, according to a regional report by IABM published by CommsMEA. The switch to digital broadcasting is being hampered by low incomes, as many viewers would be unable to afford new receivers.Some MEA broadcasters backed by state aid have seen their budgets cut following the decline in oil prices, says Lorenzo Zanni, lead research analyst at IABM.
The transition to digital broadcasting is the most important driver of broadcast and media spending in Sub-Saharan Africa with other transitions (HDTV, 4K/ UHD, OTT) still at early stages. IABM said that in the Middle East, only Israel, Saudi Arabia and the UAE have completed the transition, and in Africa, only Morocco, Malawi, Mozambique, Rwanda and Tanzania have done so.
Zanni says that the low disposable incomes in most countries in this region make the replacement of old analogue equipment by digital set-top boxes or converters difficult, unless governments decide to intervene. They tend not to do so, for lack of revenue generation from such investments. Some broadcasters are not going digital. fearing they would lose viewers unable to afford new equipment.
The primary delivery method in the region is satellite, with IPTV on the rise, particularly in the MENA. SVoD is not widespread as broadband penetration is low, with poor quality and poor payment infrastructure.
OTT had not gained much ground in Sub-Saharan Africa before recently Iflix, an-Asia based VOD service, launched in Nigeria, Zimbabwe, Tanzania and Kenya. Iflix wants to position itself as an alternative to pirated content, offering a subscription at USD 2.50 a month, which is the price to purchase a single pirated DVD.