Music revenues in Africa, Middle East grew 8.4% in 2020

In the midst of a global pandemic that has upended industries and economies worldwide, the music industry in Africa and the Middle East saw a significant growth in 2020, with recorded music revenues increasing by 8.4%. The growth was largely attributed to the rise of streaming services in the region, according to the latest global music report. These insights were unpacked during a recent interview featuring Universal Music Group's C4s at La Mini, with Julius Pizimongo on CNBC Africa. The conversation highlighted how streaming platforms played a vital role in driving the growth of the music market in Africa and the Middle East. The availability of services such as Apple Music, Boomplay, and Spotify in numerous countries across the continent made it easier for music enthusiasts to access their favorite tunes. This accessibility, coupled with the increased time spent at home due to the COVID-19 pandemic, created a conducive environment for the uptake of streaming services. Universal Music Group's strong focus on the region was also emphasized during the interview. The company has expanded its presence in various African countries, including South Africa, Nigeria, Kenya, Ivory Coast, Senegal, and Morocco. By signing and developing local artists, Universal Music Group aims to cater to the diverse music preferences of different African markets. When it comes to the type of music driving growth in Africa, the conversation highlighted the diversity across different regions. While Bongo flavor dominates the Tanzanian music scene, Amapiano, hip-hop, and house music are popular in South Africa. This diversity reflects the richness of Africa's music landscape, with each country having its own set of dominant genres and local artists. The impact of the music industry on the economy was also a focal point of the discussion. Studies have shown that the creative industries, including music, contribute significantly to the GDP of various countries. From artists and managers to record labels and live entertainment venues, the music ecosystem provides employment opportunities and drives economic growth. Looking ahead, the future of the music industry in Africa remains uncertain due to the ongoing challenges posed by the pandemic. With a sharp decline in physical revenue in 2020, artists and recording companies are exploring alternative revenue streams such as online shows and e-commerce. Despite the obstacles, there is a concerted effort to support artists and adapt to the changing landscape of the music business. As the music industry grapples with these challenges, there are valuable lessons to be learned from regions like Latin America and Asia, which have seen remarkable growth rates. One key takeaway is the importance of enabling alternative payment methods, such as carrier billing, for music subscription services. By reducing barriers to access and diversifying payment options, the music industry in Africa could unlock new growth opportunities and reach a wider audience. In conclusion, the resilience and adaptability of the music industry in Africa and the Middle East have been evident in the face of unprecedented challenges. As streaming continues to drive growth and innovation in the music market, stakeholders are focused on fostering a sustainable ecosystem that supports local talent and provides access to diverse musical offerings.