Streaming services fuel consumers’ appetite.
Digital content sharing solutions success are growing across the world, however one continent still remains unexploited “Africa”. Furthermore, artists in Africa are struggling to counteract the negative effect of counterfeit-copyright.
There are quite a few streaming providers currently leading the international market. Providers such as Spotify, launched in 2011 with a reported 40 millions paying subscribers worldwide in 2016, Apple Music a paid only service provider backed by Apple launched in 2015 reported to have 17 million subscribers, Jay Z’s Tidal and Amazon’s new paid streaming service to name only a few. However, what all these providers also have in common aside from their product offering is a lack of efficient service offering for the African market. Mainly because they do not understand the African Market and the models currently working in Europe and the U.S have to be adapted to the consumer in African, and partly due to the lack of digital technology availability in Africa.
African economies are growing quickly, and according to IFPI’s Digital Music Report 2014, mobile broadband penetration in Sub-Saharan Africa went from 2% in 2010 to 11% in 2013 while digital revenue soared by a staggering 107% in South Africa. International music corporation Sony Music Entertainment has foreseen the potential of the African market. Sean Watson, managing director of Sony Music Entertainment Africa, says: “The forecast for smartphones growth in Africa over the next few years is staggering.”
Africa is the leading ground for smartphones and digital music growth worldwide. The African Report estimates that mobile music revenue in Africa will be $474 million by 2016, by comparison North America’s revenue in 2016 will $824 million. These data only confirm the knowledge that the increase usages of smartphones and Internet connectivity across the continent have set up the perfect environment for digital content sharing to thrive and succeed.
Digital music isn’t just profitable for international music corporations or digital streaming corporations; it has also proven to be a positive influence in the reduction of piracy (counterfeit-copyright). Indeed, according to the Phonographic Industry’s 2013 Digital Music Report major inroads have been made to curb illegal downloads, suggesting that the global music industry is finally catching up to the internet era. Music piracy is dropping steadily in certain countries due to tighter controls and the rise of legal alternatives. While These facts suggest that investing in Africa through tailored digital music streaming packages at the moment will be be profitable for the investors, it is safe to add that it will also play a major role in the fight against piracy in Africa.
If you want to know more about the digital content market in Africa, or discuss opportunities and entry strategies for your company, please do not hesitate to contact our team.
R. N. Dongmo