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. International and local music platforms are multiplying their initiatives in the field. This movement must now benefit content producers, African artists, more widely.
In line with this trend, Universal Music Group and French music streaming platform Deezer have announced plans to roll out a new artist remuneration model by the end of the year. Scheduled for launch in France in the fourth quarter and worldwide in 2024, this new model will focus on artists rather than users.
Today, platforms are increasingly based on a "market"-centric model. In concrete terms, a user who pays around €10 per month for a music streaming subscription does not necessarily listen to the musicians at the top of the charts, but most of their subscription fee goes to the most listened-to artists. However, the two players now want to rethink the model to move towards a "user-centric" model, based on individual subscribers' listening habits rather than overall listening figures. Deezer wants to focus on professional artists who have at least 1,000 streams per month with at least 500 unique listeners in order to pay them more fairly. In short, the idea is to reward artists as much as possible, regardless of their career level and the size of their fan base.
According to Jeronimo Folgueira, CEO of Deezer: "There is no other industry where all content has the same value, and it should be obvious to everyone that the sounds of rain or a washing machine (ambient playlists) do not have the same value as a song by your favorite artist played in high quality."
Indeed, with the development of new music streaming platforms, the issue of artist remuneration and value creation has become crucial. Marketing resources must now be put in place to generate digital traffic, develop the artist's visibility and thereby generate revenue, ensuring a fair distribution between artists and platforms. On the continent, the professionalization of the music industry will only be possible if it benefits all stakeholders.
Source: press release