Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Digital Entertainment

Sub-Saharan African OTT Market to Top $1B by 2024 – Report

Article Image
The value of the OTT video market in Sub-Sahara's 35 countries will grow nearly five-fold from US$223 million in 2018 to $1.018 billion by 2024, according to a new market forecast by Digital TV Research.

The market will continue to be dominated by South Africa and Nigeria, predicts the report. Nearly two-thirds of the market value will be accounted for by the two leading countries, with 15 others generating OTT revenues of more than $10 million each by 2024.

The biggest contribution to the OTT video market will continue to come from SVoD (streaming video on demand). Just over 3 million users subscribed to SVoD services in 2018, but the forecasters at Digital TV Research believe this number will reach 10.21 million in 2024, generating $782 million in revenues, or about 77% of the total OTT video services market. The expected ARPU (average revenue per user) of $6.40 per month in 2024 will represent a significant increase on the sub-$5 level of 2018. Other OTT revenues will largely be driven by paid downloads and content rentals.

The fast growth of the OTT video market in the Sub-Saharan countries does not mean the pay-TV market in these countries will stop growing. In fact, the pay-TV market will continue to be far bigger than the OTT segment in Sub-Saharan Africa in the years to come, according to another forecast published in tandem by the same research firm.

According to that forecast, more than 16 million new pay-TV subscribers will sign up for services between 2018 and 2024, bringing the total number of subscribers in the Sub-Saharan countries to 45.63 million. Meanwhile, the total revenues from pay-TV in the Sub-Saharan countries will grow from $5.43 billion to $7.72 billion in the same period.

"Subscriber numbers will climb by 61% over this period, but pay-TV revenues will rise by only 42%, indicating lower ARPUs," said Simon Murray, principal analyst at Digital TV Research and the author of the forecast.

More than 40 million pay-TV subscribers, or 89% of the total, are expected to take their service from three leading operators in 2024, as 93% of the current total do now: Multichoice (19.37 million, on DStv and GOtv platforms); StarTimes and StarSat (14.85 million combined); and Vivendi (6.21 million, on Canal Plus and Easy TV platforms).

The user bases and revenue sizes may be dwarfed by the global heavyweights like Comcast and Netflix, but we may be seeing the first signs of the same patterns that have emerged in more mature markets. OTT services are already outpacing conventional pay-TV services in terms of growth, and ARPUs are expected to move in opposite directions. These may indicate that it will still be many years before we see cord-cutting hitting the African markets as a trend, but the momentum may start to move towards on-demand services.

— Wei Shi, Site Editor, Connecting Africa

Innovation hub


Interview: Qualcomm execs on mentorship for African startups

Qualcomm Technology VP for Engineering, Sudeepto Roy, and Elizabeth Migwalla, VP for Government Affairs, join Connecting Africa for a video interview about Qualcomm's Make in Africa Mentorship Program.


Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.


Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.


Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives


Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.


Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up

Sign Up