This archive report was first published on 13 July 2019.
Why Local Artists Are Yet to Reap from Growing Digital Music Revenues ¶
Published on July 13, 2019
According to the International Federation of the Phonographic Industry, 2018 marked the fourth consecutive year of growth in music industry revenues, driven by a significant rise in 'digital' revenues which accounted for nearly 60 per cent of the total.
However, this growth has largely bypassed African musicians, who continue to struggle to reap significant benefits from the digital music revolution.
Our research provides a window into the music sectors of Kenya and Ghana, where mobile telecommunications and technology firms have transformed business practices and revenue flows. We shed light on how these firms have solidified their hold over the industry, posing new challenges for African music economies and, especially, African musicians.
Recorded music distribution has always been tied up with the technology firms that have sold playback devices. But in Africa, there is one key difference: internet access is widespread, but 'unlimited' broadband access via cable is rare. Instead, most internet access is mobile, and 'unlimited' internet access is rare.
Given the strong reliance of Africans on mobile, these companies need each other. But as they developed economies of scale in a huge market, musicians (or, to be more precise, music rights holders) are not necessarily getting their fair share of the proceeds.
As Kenyan gospel singer Eunice Njeri lamented in 2016, 'I got to see the accounts and how much my songs, which were signed to Liberty Afrika, make and I am not happy … I was told my song made Sh1 million in a six-month period, when in fact it had made about Sh24 million.'
Despite the promise of better opportunities, music sectors remain a market constrained by distribution bottlenecks. In technical terms, music markets are oligonomic in character, meaning that intermediaries (labels, distributors, promoters, media outlets) continue to act as an oligopoly towards audiences and as an oligopsony towards musicians.
Currently, the International Federation of the Phonographic Industry is not paying enough attention to the nature of music economies on the African continent. This needs to change.
