GfK research reveals viewing habits in Kenya, Nigeria
GfK has launched its annual ViewScape study in Africa, showing how the rise of digital platforms is transforming consumers’ viewing habits.
“The media industry is experiencing a revolution as digital platforms transform viewers’ video consumption behaviour. The GfK ViewScape study is one of the first to not only examine broadcast television consumption in Kenya, Nigeria and South Africa, but also to quantify how linear and online forms of content distribution fit together in the dynamic world of video consumption,” says Benjamin Ballensiefen, managing director for Sub Sahara Africa at GfK.
Kenya embraces online video
Around 97% of Kenyan adults with Internet access are using some form of online video service, with nearly two-thirds paying to view digital online content. GfK’s study — which surveyed 1,250 people representative of Kenyan adults with Internet access — shows that 98% of the country’s online adults continue to watch linear broadcast television. One in four download pirated content from the Internet and 94% watch some digital video on YouTube.
Kenyans spend around six hours and 37 minutes a day consuming video content, with more than half that time (52%) spent watching free video. DVD/Blu-Ray still accounts for a larger chunk (10%) of that time than subscription video on demand (SVOD) services like ViuSasa, Showmax and Netflix (8%). SVOD users aged 16 to 24 years are the heaviest watchers, spending nearly seven hours and 41 minutes a day consuming video.
The study finds that the landscape of SVOD is becoming increasingly competitive, however, only 6% of SVOD subscribers indicated that they got SVOD to replace their pay television subscription. In addition, only 21% of respondents have subscriptions to multiple SVOD providers, suggesting this is still an emerging market. Online adults continue to include physical disks in their daily viewing, due to the high costs of prepaid connectivity in a cost-sensitive market.
“The majority of SVOD users continue to subscribe to pay TV subscriptions as well, so we are not yet seeing SVOD services take market share from the incumbents,” says Josiah Kimanzi, consultant at GfK East & West Africa.
“Among most demographics, usage of paid online content is incremental to consumption of linear television. That said, pay TV incumbents cannot afford to be complacent. Customer satisfaction with pay TV brands is low, compared with free online and SVOD services. They face a growing threat of disruption as fibre penetration increases and mobile data costs fall.”
Subscription video providers in fierce fight for Nigerian consumer’s attention
GfK’s research in Nigeria found that around 92% of Nigerian adults with Internet access are using some form of free online video service, while 55% are now paying to watch digital online content.
The study shows that 99% of the country’s online adults continue to watch linear broadcast television. Around 12% watch pirated content from the Internet and 86% watch digital video on YouTube.
Nigerians spend around six hours a day consuming video content, with 41% of that time spent watching free online video and 33% watching broadcast TV. DVD/Blu-Ray still accounts for a larger chunk (13%) of the time Nigerians spend viewing video than subscription video on demand (SVOD) services like iRoko TV, iFlix and Netflix (11%). SVOD users across all demographics are the heaviest watchers, spending an average of more than seven and a half hours a day consuming video.
Adds Kimanzi,: “Improved local and international content, affordable mobile data bundles and connectivity and connected devices are driving continued adoption of free and paid non-linear video services in Nigeria.
“Consumer satisfaction with pay TV brands is low compared to Netflix and iRoko, which are succeeding in their efforts to drive repeat subscriptions in Nigeria. It’s important to note, however, that the likelihood to renew subscriptions with pay TV brands remains high, since people have few complete alternatives. Linear broadcasters face a growing danger of disruption as data costs continue to fall, and more Nigerians turn to digital video for news and entertainment.”