A Lagos-based digital ecosystem start-up has promised to create thousands of jobs and an initial investment of $80m in the over the top (OTT) media landscape, Quick News Africa understands.
According to the company, its initial project investment is projected at over $80m, to be sourced from local capital injections, as well as foreign partnerships across the United States, the Scandinavian and East African hubs.
The new digital media business, which has already received the nod of the Federal Government and is expected to be launched any moment now, has been forecasted to provide a unique convergence of services in e-broadcasting, virtual business support services, media, marketing and business intelligence. The business is expected to be launched anytime from now.
In recent years the African market has experienced a shakeout in the OTT market with Kenya producing a US$2.2 billion in Video on Demand VOD revenues in 2017. With the advent of COVID-19 this figure is expected to grow above US$3.3 billion by 2021 at a CAGR of 9.10 per cent, whereas Nigeria recorded Subscription Video on Demand (SVOD) revenues of US$671 million within the same period and it is expected to rise to US$729 million by 2021.
Video advertising has also demonstrated huge potential in both these markets, showing a huge sign of growth from US$72 million to US$151 million in Kenya and US$292 million to US$417 million in Nigeria between 2017-2021, according to Statistics. In all, African SVOD revenues is projected to reach $1,055 million by 2025; sextupling the 2019 total of $183 million.
According to sources, the multi-platform solution would deflect the excitement currently enjoyed by African youths from Netflix; or work-collaborative benefits of the Zoom platform, Google Meet and other collaborative platforms. However, in addition to its fun-enabling solutions, their business model is also said to offer a robust, cross-media platform offering of subscription video on demand (SVOD), transactional video on demand (TVOD), advertising video on demand (AVOD) and video on demand VOD and other forms of linear programming.
“What these guys have done cuts across several digital experiences and aggregates the best of artificial and human intelligence. They have the best virtual studio I have seen so far capable of doing anything from web conferencing, virtual learning, live-streaming, amongst other services,” said a source. “I am a tech person, so I know what I am saying.”
The source, who does not want to be named, said he was privileged to view one of the demo sessions and believes that the new digital platform will help small and medium enterprises grow, enlarge the scope of big businesses.
“It is an end-to-end content technology and OTT solution provider that will facilitate content ownership, content distribution and content monetization through a premium network of distribution channels on any device,” he said.
According to him, the new platform will usher in a period of the boom to owners of creative work such as musicians and film makers as they stand to earn more money for their works than what any other platform is offering presently. Besides, he said schools, worship centres and other businesses whose activities have been disrupted by the Covid-19 pandemic will benefit from this platform which he said is very simple to operate and pocket friendly.
The promoters of this platform have been working quietly, perfecting the technology for months but had to hasten the pace of work after they saw the void created by the disruptions of the Covid-19.
Should this digital platform come on stream, it will be a major boost to the Federal government’s quest for indigenous technology and local content that will enhance the ease of doing business in Nigeria.
