Music streaming has become an integral part of music lovers' lives in today's high tech and modern world. International trends indicate that by 2020 music streaming services will dominate music distribution. The question we ask is “Where does Africa stand in this evolving market?”
Despite its huge influence and repertoire across the globe, most countries on the African continent have not historically been significant markets for the international music industry. Today this is different, as digital technologies enable the recording industry to effectively reach the mass numbers of consumers across Africa for the first time. Africa’s rapidly growing economies, internet and smart phone penetration (though small in comparison to other markets), has brought about a change in the way music is distributed.
It is reported by the International Telecoms Union (June 2016) that smartphone penetration will grow to 28.1% this year. Such growth projections have led music executives such as Sean Watson, who is the managing director of Sony Music Entertainment Africa to recognize and comment that the “forecasts for smart phone growth in Africa over the next few years are staggering.” International services are opening for business, domestic platforms are growing stronger and new services are being developed
Ulrik Cahn, Vice President for digital business in emerging markets, Universal Group, says: “You can feel that something impressive is happening with digital music in Africa now. Two years ago, the digital business was almost all ringtones, today products and services are taking off and interest from our global partners in the continent is greater than ever before.
However in the face of all the optimism that is expressed by music executives and innovators, questions are still being raised regarding the viability of streaming services on the mother continent. These questions rise from concerns such as rampant piracy in the form of fake CDs, countless websites and software that allow for illegal downloads, and the unavailability of international services in most African countries.
Given complicated and unclear music licensing issues, it would be interesting to know who has provided streaming services for all the African music. Doubts are raised on whether all of these artists themselves are aware their music is available, or if they have even ever heard of Spotify or Deezer. Do these artists get any royalties from streaming of their music? Spotify has been criticised for paying only pennies to artists or labels – highlighted by much publicised removal of Taylor Swift’s discography from the service. Most African artists on the service get only minimal amount of listening, meaning they are unlikely to earn any significant money through music streaming.
Sure, entering the African market has challenges, like expensive, slow and unreliable internet access, copyright issues and widespread piracy among others. Many notable record labels entered the African market in the 70s and 80’s but then mostly left due to the surge of piracy after cassettes were introduced. Recent decade or so has shown a major resurgence of African music industry. The growing middle class in many African countries means the customer base is already there and opportunities are huge especially with the digital music sector. That’s where first movers have the advantage and those entering the market late may lose out.
As Africa represents a unique market in terms of music distribution for international content, it should be realised that the continent is the largest market for domestic content. This presents opportunities for local entrepreneurs and artists to develop services that not only distribute local content to the greater continent, but also provide real competition to international global brands. As the saying goes “only the owner of the arm knows the back of the hand best”.
Successful African services such as Spinlet, iRoking from Nigeria and Mdundo from Kenya have made a name for themselves by primarily focusing their distribution model on African content. This move in turn inspired international giants such as Universal Music to adopt a similar model in the form of THE KLEEK. THE KLEEK, a pan-African mobile music streaming service, backed by Universal Music and electronics giant Samsung, and licensed by Sony Music, launched in March 2013. THE KLEEK offers an interactive voice response service as well as an app featuring a huge range of playlists. While looking at the developments on the greater continent for inspiration, it is saddening to see that Zimbabwe is yet to adopt local streaming services to not only make music more accessible to all but also create revenue streams for the struggling artists.
While most app/music streaming service developers’ face a myriad of challenges in Zimbabwe, these stepping stones are not hurdles to MNOs and ISPs who can provide music streaming as part of their offerings. Not only would such service providers be able to satisfy Zimbabwe’s huge music appetite but also guarantee revenue streams for not only themselves, but the local artist as well. Music streaming could be bundled into packages, offered in the form of zero rated apps for fully subscribed customers. While the distribution, subscription and licensing issues are all debatable, what is not are the obvious advantages of a home grown solution that has growth potential in not only the country, but the African diaspora.
In an effort to best understand and provide greater value to music lovers, ZOL Zimbabwe is conducting a survey on music streaming. Contribute to this study by clicking on this link to complete the survey.
By completing this survey you will help us tune into the beat that drives your experience, and be a partner in drafting Africa’s digital future.
ZOL ON! You deserve to live like this.
ZOL Marketing & PR
Sources:
https://africathistime.wordpress.com/2015/05/28/music-streaming-services/
http://www.ifpi.org/africa.php