SA music booming, but not for music makers

Sub-Saharan Africa has the fastest-growing recorded music industry in the world, averaging 24% growth annually for the past three years, and South Africa makes up 7% of that market. This data from the International Federation of the Phonographic Industry (IFPI) should be cause for joyful noise, but it’s not coming from the artists themselves.

The reason, ironically, is that most of the growth is coming off the back of digital streaming services like Spotify, and they are infamous for the low percentages they pass on to all but the biggest artists.

“Outdated payment models used by streaming services are still a significant obstacle,” says Nick Matzukis, co-founder of the Academy of Sound Engineering. “Platforms like Spotify and Apple Music operate on a non-artist-centric model. Essentially, this means that revenue is divided based on overall streams rather than individual user to artist relationships.

“This place emerging artists at a disadvantage. If streaming is to grow as an enabling environment, the payment model must change. The major record labels have noted this, and are pursuing active negotiations with the streaming services to rectify this issue.”

On the other hand, he says, the shifting shape of the industry means artists also have to learn the business ropes.

“There are significant opportunities for musicians and industry professionals alike to advance their careers.

“With 60% of Africa’s population under 30, the region is poised to become not only the source of new content, but also the new market. This youthful demographic is driving demand for African music, and international companies are increasingly looking to invest in our market, through job creation and stable revenue.

“The role of record labels has evolved due to the rise of digital platforms. In the past, labels managed everything from production to distribution. Today, they only sign artists that have already demonstrated success on social media platforms like TikTok, YouTube, and Instagram Reels.

“However, the competitive nature of these platforms means that while some artists achieve significant success and can manage their careers more independently, many others struggle to break through the noise.”

This means they need a good understanding of the business side of music, including complex issues like copyright law and royalty streams.

“Without this knowledge, artists risk signing unfavourable contracts and missing out on potential income.”

The irony is that they are losing out even as the digital revolution has democratised music distribution, allowing artists to reach their audience directly through online platforms and aggregators.

“This direct access removes traditional gatekeepers and offers artists more control over their careers. However, it also comes with risks, and artists must be knowledgeable about the potential pitfalls of managing their own digital presence.”

The Academy of Sound Engineering offers to equip artists with the necessary knowledge and skills, so that they are prepared to navigate the challenges and opportunities of the changing music landscape. It includes education, contract negotiation, copyright knowledge and an understanding of digital platforms as key to building a sustainable career in the industry.

Matzukis highlights the artist Phalaza de deejay, real name Ofentse Ntokozo Nkos, who has been signed by Sony, but is honing his craft at the Academy.

“The Academy has been instrumental in his musical journey, as it has taught him about the music business and equipped him with access to the best studios and gear in the country, learning from industry experts,” says Matzukis.

“As the music industry continues to grow and digital streaming platforms take over the traditional way of distributing music, it is even more vital for this talent to understand the business side of the industry, through the right education foundation. Talent, production skills and music business knowledge must combine.”

* Arthur Goldstuck is CEO of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on social media on @art2gee.