The International Federation of the Phonographic Industry (IFPI)— the worldwide body that represents the interests of the recording industry, recently released the 2021 ‘State of the Industry Report’. Though wide and detailed, the report has new and promising implications for the Kenyan-African music industry, writes Jackson Onyango

The global music industry has since early last year been hugely strained by the Covid-19 pandemic, which has affected the sector in a vast ways. However, this did not stop the music completely.

With isolation and lockdown imminent, the music industry was forced to improvise in new ways, with digital innovation and virtual integration largely relied on to be the main pillar to sustain the world’s appetite for their favourite artistes’ work, which eventually became a major source of income for many artistes.

As time went by, the economic lockdowns became more pressing, and the music industry that provides more than two million jobs worldwide had to conjure up new means for fans to consume live music without actually being at live shows, which led to the birth of virtual concerts.

Musicians were forced to earn a living alternatively, as well as all the industry professionals that rely on the craft, to be able to survive the economic hardships.

“The work and investment by record companies has helped lay the foundations for a predominantly digital industry that proved its resilience against the extraordinary circumstances of 2020.

In a challenging year, record companies have worked alongside their artist partners to support them in creating and recording music and the whole sector has continued to drive innovations in the ways fans can experience music around the world,” cites the International Federation of the Phonographic Industry (IFPI) report.

The figures

According to the report, the industry recorded a 7.4 per cent growth in total revenue that amounted to Sh2.16 trillion. This was the sixth consecutive year of growth.

However, there was a 4.7 per cent decline in physical music revenue that was compensated for by streaming numbers plummeting with fans locked at home and in isolation, and listening to music more using electronic devices and digital streaming platforms (DSPs).

Record labels invested the money for pressing into their merchandise bundles, but shipping was arduous and fans were left with no choice but to go online too.

The report cites an astounding 10.1 per cent decline in performing rights revenue, which emphasises how much a damage Covid-19 has caused, as event venues have been on their knees with little or no business going on for over a year now. 

“Together with proprietors of bars and other entertainment joints, we the event venue providers have been hit the hardest by this pandemic. The situation was even aggravated when recently the government locked down five counties that are key to our business.

This came at a time when business had started streaming in, and the smile was returning,” says David Mbugua, who runs an entertainment spot with a garden space for outdoor events in Ruai, Nairobi.

The IFPI report further indicate that DSPs realised a 18.5 per cent growth in paid streaming revenue with Sh443 million paid subscription accounts on digital music markets such as Apple Music, Spotify, Tidal, Deezer and Audiomack among others.

Music power

“As the world contends with the Covid-19 pandemic, we are reminded of the enduring power of music to console, heal and lift our spirits.

Fuelled by record companies’ on-going investment in artistes and their careers, along with innovative efforts to help artistes bring music to fans in new ways, recorded music revenues grew globally for the sixth consecutive year, driven by subscription streaming.

As record companies continue to expand their geographical footprint and cultural reach, music has become more globally connected today, than ever before and this growth has spread across all regions around the globe,” said IFPI chief executive officer Frances Moore. 

The consensus that every country in the world has unique ecosystems, infrastructure, and different corporate frameworks, the same applies to Africa with its rich diversity in each country.

Simon Robson, the president of International Recorded Music at Warner Music Group—one of the world’s biggest music entities with interests in recorded music, music publishing and artiste service, points out the ascension of African music to the global sphere, as well as its rapid growth all-round is worth taking note of.

“Music is intrinsically about culture, so it’s key that all our affiliates worldwide have their fingers on the pulse of the local scenes, but we must back that up with a world class global infrastructure.

I want to double down on local scenes and domestic artistes, and bring expertise, professionalism and the ability to open up global opportunities for those artistes. That is where we can make a massive difference,” says Simon.

This phenomenon has been aligned with the constant inclusion of African stars in globalesque projects, whether in music, film or guild shows, the doors are open for African acts to break status quo now more than ever in arts and entertainment corridors. Record labels are scouting more African talents and opening them up to bigger opportunities, and this is shaping African superstars by the day.

IFPI says recorded music revenues in Africa and the Middle East increased by 8.4 per cent in 2020. This was driven primarily by the Middle East and North Africa (Mena) region, where revenues rose by 37.8 per cent. Streaming dominated, with revenues rising by 36.4 per cent, with South Africa and Mena accounting for 86.7 per cent of the region’s revenues.

Streaming royalties are becoming more available and accessible to African artistes whose fans are no longer only from Africa, but also in the diaspora.

Despite travel bans, there is a global shift, where music companies such as IFPI, are opening shop in different African cities, increasing tangible presence all over the continent, creating employment opportunities, and seeking solutions to catapult Africa into the global music conversation and opportunity bracket.

“There is a lot of potential in Africa. The artistes, authorities and audience are waking up to it.

It’s evident through streaming apps that Kenya, and Africa has something to offer,” Sub-Saharan Africa IFPI boss Angela Ndambuki tells Spice.

She adds: “There are significant investments, and there is great support coming in in terms of infrastructure, music licensing companies, and the government in liaison with artistes and their corporations are working towards a great future with no digital piracy, and great copyright policies that will streamline the industry.”

Culture and commerce

Universal Music, South Africa and Sub-Saharan Africa CEO Sipho Dlamini is just as positive about the region’s performance and future, and believes it is vital that record companies have a widespread physical presence and a deep understanding of local cultural and commercial nuances. 

He says: “We now have a network, a regional presence, that allows us to represent artistes from different countries on the continent.”

As new entrants such as Swedish music giants Spotify venture into Kenya, artiste distributing organisations including Britain’s Platoon, major investments into corporations such as Mdundo’,Boomplay’s extensive artistes and repertoire programmes, Audiomack and other music companies swarming into Africa, there are positive engagements between creatives and the private sector.

Governments will be forced to upscale their efforts in empowering the industry, especially in regard to royalty compensation, media regulations, artiste funding, opportunity creation, and even setting up education programmes that can harbour careers in the music industry, all the way from the grass-root level.