MUSIC STREAMING SERVICE PLATFORMS DRIVE AFRICA MUSIC SALES HIGHER DURING PANDEMIC PERIOD

Nairobi, Kenya, 23rd March 2021:

IFPI, the organization that represents the recorded music industry worldwide, has released the 2020 Global Music Report which reveals the entry and uptake of music streaming platforms such as Apple Music Spotify and Boomplay in Africa are having a positive effect on the continent’s growth in music revenue. This is in line with the global trend over the past year where streaming services accounted for 62.1 percent of global music revenue with performance rights revenues taking the biggest hit as major concerts and events were cancelled amid the covid-19 pandemic.Whereas still in the nascent stages in the continent, streaming played a major role in alleviating the pain resulting in a lack of physical performances and contributed a mammoth 71.9 percent of Africa’s music revenue according to Universal Music Group. South Africa and the Middle East continued to control much of the revenue generated with other Sub-Saharan countries showing an increase in uptake in the streaming services. On a year on year basis streaming saw revenues up by 36.4%.“The easing of internet costs in South Africa, at a time the country experienced the continent’s largest corona pandemic outbreak and longest lockdowns, may have led to the increase in uptake of streaming services. Overall South Africa and the MENA region received 80 percent of the region’s music revenue,” said Sipho Dlamini, CEO Universal Music South Africa and Sub-Saharan Africa.Recorded music revenues in the Africa & Middle East region increased by 8.4% in 2020 outpacing the global recorded music market grew by 7.4%, the sixth consecutive year of growth, according to IFPI, the organization that represents the recorded music industry worldwide. Figures released today in IFPI’s Global Music Report show total revenues for 2020 were US$21.6 billion.Global revenue growth was also driven by streaming, especially by paid subscription streaming revenues, which increased by 18.5%. There were 443 million users of paid subscription accounts at the end of 2020. Total streaming (including both paid subscription and advertising-supported) grew 19.9% and reached $13.4 billion, or 62.1% of total global recorded music revenues. The growth in streaming revenues more than offset the decline in other formats’ revenues, including physical revenues which declined 4.7%; and revenues from performance rights which declined 10.1% – largely as a result of the COVID-19 pandemic.IFPI Chief Executive Frances Moore, said: “Fuelled by record companies’ ongoing investment in artists and their careers, along with innovative efforts to help artists bring music to fans in new ways, recorded music revenues grew globally for the sixth consecutive year, driven by subscription streaming. As record companies continue to expand their geographical footprint and cultural reach, music has become more globally connected today, than ever before and this growth has spread across all regions around the globe. With many impacted by the pandemic, and concerned with growing social injustices, record companies have worked hard to make a meaningful, lasting contribution to the world we want to live in.”

During the same period, there has been an increase in the signing of African artists in global recording labels that are expected to increase revenue in the coming years. “We are encouraged that the world is embracing music from Africa as seen in the rising nominations and recognition into major global music awards witnessed recently. The fact that this year’s report has for the first time featured Africa and Middle East Region is testament to the increasing opportunities that have been accentuated by the recent launch of major streaming platforms and we are excited to see the growth in the coming years” said Angela Ndambuki, Regional Director, IFPI Sub-Saharan Africa. In other regions across the World, revenues grow differently with Latin America maintaining its position as the fastest-growing region globally (15.9%) as streaming revenues grew by 30.2% and accounted for 84.1% of the region’s total revenues. Asia grew 9.5% and digital revenues surpassed a 50% share of the region’s total revenues, for the first time. Revenues in Europe, the second-largest recorded music region in the world, grew by 3.5% as strong streaming growth of 20.7% offset declines in all other consumption formats. In the US & Canada region revenue grew 7.4% in 2020 as the US market grew by 7.3% and Canadian recorded music revenues grew by 8.1%.ENDS

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