In Africa, as in the rest of the world, the digital revolution has completely transformed the music industry. New modes of consumption are emerging and online music platforms are developing. Over the past four decades, the music industry has faced numerous upheavals around the world, including a profound transformation due to digital and technological developments. Far from being a negative factor, this has brought vitality to the music sector. This vitality is increasingly spreading across the African continent.
In recent years, African music has been on the rise and is being exported all over the world. However, the African music industry, particularly in French-speaking Africa, is struggling to develop and structure itself. In fact, English-speaking Africa is a real hotbed of initiatives in this field, supported in particular by telecom operators, while the music industry is developing only slowly in French-speaking Africa.
Yet diversity, creativity, musical richness, a young population, high mobile penetration rates, and a proliferation of initiatives to democratize internet access all represent opportunities for the development of music streaming and the industry as a whole. Digitization appears to be a real solution. Even if the market still seems under-exploited, the continent is welcoming more and more players and initiatives in this field. From international giants to local players, music streaming is taking French-speaking Africa by storm.
Promising prospects
- A demographic opportunity
According to DATAXIS, which published its prospective study in June 2022, African music streaming revenues are expected to more than triple in five years, from $92.9 million in 2021 to $314.6 million in 2026.
Although 86% of revenues currently come from five major African countries—South Africa, Egypt, Nigeria, Algeria, and Morocco—DATAXIS sees signs of the continent's overall attractiveness. South Africa, Egypt, Nigeria, Algeria, and Morocco, DATAXIS sees signs of the continent's overall attractiveness.
The institute does, of course, highlight limitations related to infrastructure, low internet penetration in some countries, and low incomes among the population. Despite this, the African market represents enormous growth potential thanks to its large population.
- A young and connected population
In French-speaking Africa alone, there are around 400 million potential music consumers, 65% of whom are under 25. Internet penetration on the continent, which currently stands at 22% according to the World Bank, should further boost the sector's revenues.
Its large population and strong growth potential are enabling various music platforms to capitalize on their expansion.
- A booming mobile industry
Since the start of the global pandemic, mobile, digital, and internet connections have been considered by many to be essential tools. The GSMA, which brings together more than 750 operators and nearly 400 companies in the mobile ecosystem, has published several upcoming trends in the mobile industry in its latest report entitled "The Mobile Economy in French-speaking Sub-Saharan Africa":
- 4G development is accelerating.
- At the end of 2020, 495 million people were subscribed to mobile services in Sub-Saharan Africa, representing 46% of the region's population.
- By 2025, more than 170 million people in the region will have started using mobile internet for the first time, bringing the penetration rate to just under 40% of the population.
- Rising revenues
According to the latest annual report from the International Federation of the Phonographic Industry (IFPI) published last March, revenues generated in sub-Saharan Africa by the music industry increased by 9.6% in 2021. This growth is driven by the explosion in revenues on the continent, "made possible by the availability of payment methods other than credit cards."
Music streaming has experienced two-speed development on the continent. While platforms are well established in English-speaking countries, there is still room for growth in the sub-Saharan region, but French-speaking Africa is poised to become a major market for the music streaming industry.
Major players in the starting blocks
These promising prospects have not escaped the attention of international music streaming players…
Some have taken advantage of the Covid-19 health crisis to begin their expansion into French-speaking Africa. Apple has launched its Apple Music service in around 20 African countries. In the French-speaking world, Côte d'Ivoire, Cameroon, and the Democratic Republic of Congo now have access to the Apple catalog. The ambition behind this move? To mark a new stage in the development of the American giant's activities by strengthening its international presence in the wake of a global crisis in which online platforms were widely embraced by populations in lockdown.
Other players followed suit… In March 2021, Spotify announced the launch of its activities in 40 African countries, formalizing its entry into French-speaking sub-Saharan Africa. The service is now available in countries such as Côte d'Ivoire and Benin. Across all of these new markets, the platform offers its entire music catalog, enriched with new content through collaborations with local players.
Boomplay, a music streaming platform owned by the Chinese company Transsnet Music Limited, is also one of the market leaders. In 2019, the platform had more than 46 million users. Launched in Nigeria in 2015, Boomplay is now present in Kenya, Tanzania, and Ghana. But recently, the player has chosen to set its sights on French-speaking Africa, developing its activities there through agreements with partners based in the region. With more than 70 million active users per month, 80 million songs, and thousands of playlists accessible through its service, Boomplay recently chose to open offices in Côte d'Ivoire, formalizing its presence in French-speaking Africa.
The successive arrivals of these "giants" on the market are a clear sign of the attractiveness of French-speaking Africa in terms of music streaming. In addition to international platforms, local players are also taking the French-speaking world by storm and intend to make the most of it by adapting to African consumption patterns.
New models adapted to local realities
The growing number of smartphones in French-speaking Africa is paving the way for the arrival of music streaming platforms. At present, the global leaders are establishing themselves in the market, but they are not alone: local players are also setting out to conquer the French-speaking zone with models that are sometimes better suited to local consumption patterns. For the most part, they are adopting tailor-made strategies, taking into account the low level of connectivity, the low purchasing power of the population, and piracy, which remains a real challenge in many countries.
This is the case, for example, with the Kenyan platform MDUNDO, which has chosen to work closely with artists by giving them 50% of their revenues. A partnership strategy is also promoted by WAW MUZIK, which officially launched its activities on June 28, 2022, in Abidjan.
According to its founder, Jean-Philippe Audoli: "Waw Muzik is based on a model that is cheaper than piracy but also a real source of income for local artists and rights holders. The WAW Muzik project was thus born to set a precedent for existing models on the market, and to this end, we have entered into a key partnership with the operator Orange in Côte d'Ivoire. Together, we have designed a music streaming model for Africa based on a payment method using USSD technology, whereby phone credits are converted into music. To adapt to local realities and consumption patterns, we have designed unlimited day/3-day/week/month offers and provided internet connection…".
In Senegal, there is also the Deedo platform, which is entirely dedicated to African music and music from the diaspora, with a business model based on an unlimited paid version and a free version limited to 4 hours of listening per month. It features playlists featuring Congolese rumba, Afrobeat, Ivorian rap, and Senegalese mbalax. These successful launches are the result of partnerships with telecom operators.
All this momentum is helping to create a favorable ecosystem for the development of the music industry in French-speaking Africa, thereby generating profitable revenues for all players in the sector.
The digitization of the music industry is an excellent way to promote and develop the African continent, particularly the French-speaking part, which suffers from a lack of visibility. Economically speaking, the momentum underway could lead to the industrialization and structuring of music made in Africa, increased revenues, and capacity building for industry players, offering real visibility to artists who are still unknown to the rest of the world.
A word from the players
Interview with Paola Audrey Ndengue, Managing Director of Boomplay Music Côte d'Ivoire