Wizkid signed with Sony Music last year
Sony Music Entertainment sees big growth prospects for music streaming in Nigeria, thanks to falling internet data costs and a large, growing population, a senior executive told Reuters.
Music streaming could help the company generate revenue beyond its dominant position in the country in ringback tones – the sound or music heard by a caller when phoning someone.
Michael Ugwu, general manager for West Africa, said Sony Music had set up partnership deals in Nigeria with telecoms companies MTN, Airtel and Etisalat since opening an office in commercial capital Lagos in February 2016.
With internet connectivity improving, Ugwu said streaming subscriptions were a top growth area. “That’s where the business focus is,” he added.
Ugwu said there were around 3.5 million subscribers to MTN Music Plus, with users paying from as little as 50 naira ($0.16) up to 800 naira a month to stream music.
“MTN has about (a) 60 million subscriber base, which shows that penetration is still at the early stages,” said Ugwu.
A report by auditing firm PricewaterhouseCoopers (PwC) in 2015 said revenue from music sales in Nigeria, Africa’s most populous country, was $56 million that year, and predicted it would grow to $88 million in 2019.
PwC also said Nigeria’s entertainment and media industry had an estimated total revenue of $4.8 billion in 2015 and was likely to grow to $8.1 billion in 2019, making it “the fastest-expanding major market globally”.
Ugwu said Nigeria’s population of 180 million, which the UN predicts will rise to 400 million in 2050 to make it the world’s third most populous nation after China and India, and a large proportion of young people made the country attractive.
Apple Music and French music streaming service Deezer are currently available in Nigeria.
Ringback caller tones currently generate at least a third more revenue for Sony Music than streaming in Nigeria, and Ugwu said the company’s decision to open an office in Lagos was largely influenced by the size of the ringback market.
“We saw the market being worth over $100 million a year in terms of sales, purely on caller ringback tones,” he said, adding this was based on Nigerian music being played to callers.
Source: Business News
- Michael Ugwu is leading the Nigerian music revolution (Video)
- Nigeria’s booming music scene: An interview with D’banj (Video)
- How Davido Became African Pop Music’s Fortunate Son
- Why Africa’s Musicians Are a Marketing Goldmine
- How Nigeria’s Wizkid fashioned a new sound that won global appeal
- Spotify in Talks With Vodacom Over Music Deal in Africa
- Lagos calling: Tony Allen opens up Nigeria’s music scene
- MTN, Samsung and Coca-Cola top list of most admired brands in Africa
- South Africa Entertainment and Media Outlook including Nigeria & Kenya (2013 – 2017): PwC (Report)
- Naspers in talks With Vodacom to deliver video-on-demand services across Africa
- Failing all the way to success: Jason Njoku, Founder & CEO, iROKO Partners (Video)
- An interview with Spinlet’s CEO, Nkiru Balonwu, and Head of Business Development, Oye Akindeinde (Video)
- The boom in Africa’s music industry continues
- MTN in talks to buy MultiChoice Africa, says report
- The sound of young urban Africa is set to take over the world’s pop charts
- The Lagos power list: 21 people in 21 million
- Is this the year that African music will conquer the United States?
- Nollywood: Nigeria stands out at the Toronto International Film Festival
- Nigerian entertainment & media revenues will more than double to $8.5B in 2018
- iROKOtv Co-Founder Bastian Gotter leaves the company to invest in African startups
- MTN in another legal headache as Etisalat sues for use of frequency in Nigeria
- A new Netflix server in Nigeria will deliver faster streaming and content to its African users
- The impact of over-the-top (OTT) internet-based content delivery in Africa: Jason Njoku, Founder, iROKO Partners (Video)
- Why WhatsApp is South Africa’s favorite app (Infographic)
- South Africa’s Naspers returns to bond market to fund emerging markets internet acquisitions
- Nollywood’s Must-Watch Director
- The rise and rise of the $5B industry called Nollywood
- Nollywood’s biggest streaming service isn’t afraid of Netflix
- Jason Njoku’s iROKOtv raises $19M in series D financing
- AG Mobile launches its mobile devices in Nigeria
- Kenyan banks are closing in on what they think will be the perfect M-PESA disruptor (Infographic)
- Africa Telecom and Tech IPO Pipeline Swells as Growth Companies Target Public Markets
- Africa’s largest company to start funding roadshow in the US and UK
- Leading Music Site, Notjustok.com, Launches SoundCloud-Styled Music Platform
- Wizkid is set to sign the biggest record deal ever by an African artist
- South Africa’s MTN bets on mobile banking with new CEO
- M-Pesa, Safaricom, Kenya regulators and Vodacom could be about to open up mobile money in Africa
- ShowMax is stepping up its pan-African battle with Netflix by putting servers in Kenya
- Nigeria’s Ntel seeks $1 billion for mobile broadband growth
- Nigerian business tycoon Jim Ovia to sell Visafone to South Africa’s MTN