Streaming revolutionized the music market, with music streaming Services such as Pandora, Deezer, Spotify, Apple Music and Boomplay all following early forerunners such as Napster to becoming key players.
The music industry has evolved in the past few decades, from the way songs are consumed to the way they are distributed. Traditionally, music was distributed and controlled by the few record labels that existed through physical records (vinyl’s/CDs). These required a record player (turntable/disk player) as music was physically printed onto these physical media. However, since the advent of smartphones and the internet, there has been a shift from these wholly material means of consumption and distribution to digitalization through the rise of streaming.
Streaming revolutionized the music market, with music streaming Services such as Pandora, Deezer, Spotify, Apple Music and Boomplay all following early forerunners such as Napster to becoming key players. These streaming services have broken down key barriers, that may have hampered music consumption through physical media; digitalization have served to “democratize” the industry making music accessible to anybody, anytime, anywhere.
The amount of money that has been generated by these platforms, and the amount of exposure they have given their users cannot be overemphasized. In 2022 alone, the music streaming market size increased to US$30.33 billion, reaching a total of 776.2 million users globally, and is expected to lead to a total market size of US$43.63 billion by 2027, with an overall 1,083.1 million users globally.
Africa’s music industry is not exempt from this revolution, as the continent has also seen advancement in its music industry. According to Statista, revenue from Africa’s music streams is projected to reach US$164.30m in 2022, with a compound annual growth rate of 8.99% between 2022 and 2027 resulting in a projected market volume of US$252.70m by 2027, with the number of users expected to amount to 58.5m users by 2027.
South Africa, Egypt, and Nigeria Lead in Revenue Generation
South Africa’s music scene is both unique and diverse, offering a wide spectrum of genres ranging from Hip-Hop and RnB to the catchy Amapiano. It is with this variety of music, and a number of other factors that’s has led South Africa’s streaming industry to generate US$33.46 million in streaming revenue in 2022 alone. This is by far the largest revenue generator in South Africa’s digital music industry, contributing over 70% of revenue generated from digital music. While revenue in the digital music segment is projected to reach US$47.18m in 2022. South Africa’s earnings are also expected to show an annual growth rate of 2.75%, resulting in a projected market volume of US$54.04m by 2027.
Egypt generated the second most revenue from music streaming running to the tone of $30.77 million. This represents an 85.92% share of its digital music industry, earnings expected to peak at $35.81 million by the end of 2022.
Nigeria placed third on the list generating $27.79 million from music streaming alone, with revenue in the digital music segment projected to reach US$44.71m by the end of the year. Revenue is also expected to show an annual growth rate of 9.14%, resulting in a projected market volume of US$69.24m by 2027. Other key performers on the list includes:
Zimbabwe – US$13.57M
Morocco – US$13.29M
Kenya – US$9.06M
Algeria – US$7.75M
Sudan – US$4.43M
Cameroon – US$3.98M
Tunisia – US$3.42M
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