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Navigating Music Revenue in Africa: Policies for Growth

Harmonizing the Beat: Music Revenue Dynamics and Policy Pathways for Africa

George Robert Asewe

Founder & CEO The Music Advocate Africa

The music industry’s financial pulse continues to quicken, with the RIAA’s 2024 report revealing a U.S. recorded music revenue of $17.7 billion—a 3% annual growth driven by streaming dominance and vinyl’s nostalgic resurgence. RIAA is the trade organization that supports and promotes the creative vitality of music labels in the United States. It also enhances their commercial vitality. This makes it the most vibrant recorded music community in the world, going by revenue figures. Their membership includes several hundred companies. These range from small to medium-sized enterprises to global businesses. They create, manufacture and/or distribute sound recordings.

In support of its mission, the RIAA works to protect the intellectual property of artists and music labels. It also upholds American First Amendment rights. Additionally, it conducts consumer, industry, and technical research. The organization monitors and reviews state and federal laws, regulations, and policies. RIAA also certifies Gold®, Platinum®, Multi-Platinum™, Diamond and Los Premios De Oro y Platino™ sales and streaming awards.

I litigated music rights in Kenya between 2011 and 2021. I grappled with piracy, complicated ISP telecom-driven streaming models, and collective management disputes. I successfully defended the Music Publishers Association of Kenya. They faced a 100 Million Copyright Infringement claim. This claim had been filed by The Music Copyright Society of Kenya. I even took on Safaricom and its skiza music business partners. I unpacked the opaque skiza music royalty system. The opaque nature is not entirely Safaricom’s fault. The Copyright Legal System has failed. It is out of touch with the mechanical royalty licensing framework for telecommunication companies. This system bypassed collective management organizations in licensing their mechanical uses of Kenyan music. This is now a legislative and policy question that requires urgent redress. Courts can’t fix it. These experiences captivated me with how money flows through this creative ecosystem in Africa. This article explores the mechanics of music revenue and its societal significance. It also outlines actionable policy steps to empower African nations in the global music business industry.

1. What Is Music Revenue?

Music revenue refers to income generated from the commercial use of sound recordings and compositions. The RIAA’s 2024 report categorizes this into three streams:

• Streaming (84% of revenue):
  Paid subscriptions (e.g., Spotify Premium, Apple Music) grew 5% to $11.7 billion, while ad-supported platforms like YouTube declined slightly to $1.8 billion. Digital radio (e.g., SiriusXM) contributed $1.4 billion. Notably, 100 million paid subscriptions were recorded for the first time.
• Physical Sales (11%):
  Vinyl revenue rose 7% to $1.4 billion, outselling CDs (44 million vs. 33 million units). Physical formats remain a lifeline for niche markets and collectors.
• Downloads (2%):
  Digital downloads collapsed to 2% of revenue ($369 million), a stark fall from their 2012 peak (43%).

Additional income includes synchronization royalties ($412 million) for films, ads, and games.

2. Why Music Revenue Matters

For Artists:
Revenue sustains creativity. Streaming, while dominant, remains contentious. An artist earns $0.003–$0.005 per stream on average (Ditto Music, 2024), making volume critical. Physical sales, though smaller, often yield higher margins.

For Governments:
Music industries contribute to GDP, job creation, and tax revenue. In the U.S., the sector supports 2.5 million jobs (RIAA, 2024). Robust copyright frameworks attract foreign investment. This is a lesson for Africa. In Kenya alone, piracy drains $50 million annually (Music Copyright Society of Kenya, 2023).

For Cultural Sovereignty:
Revenue ensures that local genres thrive. Nigeria’s Afrobeats, South Africa’s Amapiano, and Kenya’s Benga music depend on fair monetization to avoid cultural erasure by globalized algorithms.

3. Policy Priorities for African Nations

To bridge the gap with the U.S. and Europe, African legislators and stakeholders must prioritize:

A. Modernizing Copyright Legislation

• Mandate Collective Management Reform:
  During my time advocating for Kenya’s CMOs, inefficiencies and opaque distribution were rampant. Legislation should enforce transparency audits (e.g., annual public reports) and cap administrative fees at 15–20%, as seen in Sweden (STIM, 2023).
• Expand Neighboring Rights:
  Europe’s Copyright Directive (2019) ensures performers receive royalties for radio/streaming. African nations like Nigeria and Ghana have begun adopting similar frameworks, but implementation lags.

B. Regulating Telecom-Driven Streaming

In Kenya, telcos like Safaricom dominated early streaming via ringback tones, often sidelining creators. Policies must:

• Require telcos to disclose revenue splits (e.g., 70% to rights holders).
• Mandate direct licensing agreements with CMOs, avoiding exploitative middlemen and companies.

C. Anti-Piracy Measures

Kenya’s 2019 Copyright Amendment Bill introduced stricter penalties, but enforcement remains weak. Solutions include:

• ISP Accountability: Require ISPs to block infringing sites, as per South Africa’s Copyright Amendment Act (2022).
• Public Awareness: Leverage campaigns like Nigeria’s “No Music Day” to shift consumer behavior.

D. Invest in Digital Infrastructure

The RIAA credits streaming’s growth to widespread internet access. Africa’s internet penetration (43%) trails global averages (ITU, 2024). Public-private partnerships can expand broadband access and lower data costs—key drivers for platforms like Mdundo (East Africa’s leading music service).

E. Foster Regional Collaboration

The African Continental Free Trade Area (AfCFTA) should harmonize IP standards, enabling cross-border royalty collection. The European Union’s Copyright Management Directive (2016) offers a blueprint.

Conclusion: Tuning the Future

The RIAA’s 2024 data underscores streaming’s hegemony but also hints at vinyl’s resilience—a metaphor for balancing innovation and tradition. For Africa, replicating this growth demands urgent policy harmonization, anti-piracy rigor, and infrastructure investment. My early battles in Kenyan courtrooms taught me that revenue justice is non-negotiable; it’s the bedrock of artistic survival. As streaming transcends borders, let Africa’s rhythm not just echo globally but reverberate with equity.

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