The global leader in music streaming has arrived in South Africa, and is set to shake up the industry, writes ARTHUR GOLDSTUCK .
The final death knell has been sounded for the thousands of iPods still in use in South Africa. Due to the high cost of streaming music via mobile data, many have held onto the one-time standard in storing music that was bought or copied onto a portable device.
That is about to change, as the world leader in music streaming, Spotify, was formally launched in this country yesterday. And it making a big play for the local audience.
“Our product stands for discovery: discovering new music and music you will like,” says Michael Krause, Spotify MD for Europe, Middle East and Africa. “We have local and international artists. Local content is so important which is why we made a huge effort to get local artist licensing.”
Krause stresses that Spotify’s arrival would be a boon not only or music lovers, but for the artists as well.
“It will give all the artists access to over 159-million customers, so we hope more South African artists will have great exposure outside the country, and also to local fans who will discover new artists they didn’t know. We hope more artists will be able to make a living off our service.”.
And there is one other massive potential benefit.
“Streaming is a key driver for industry growth in general,” says Krause. “Music streaming really helps to boost markets, even where there was a decline because of digital music. It has changed markets back to growth. These are features we hope to emphasise in South Africa.”
Spotify is available in both a free version, supported by advertising, and a paid version, which will cost R60 a month – as little as half of the $10 price tag in the United States. This positions it at the same price as other major streaming services in South Africa, like Simfy Africa and Google Play Music. As with Simfy, users will be able to download music onto their smartphone when in a Wi-Fi zone, and play it offline when only expensive mobile data is available.
The one fundamental difference to other streaming services, however, is that few users will experience a difference between music available locally and internationally. That means current users who have been “cheating” by signing onto the American service won’t be disadvantaged when they switch.
“All South Africans can simply change the country and payment mechanism so that they can pay the local pricing,” says Claudius Boller, Spotify MD for Middle East and Africa. “The interesting thing is that it’s the same music, so you don’t lose any of your playlist.
“Our standard international offer is live in this market, and there will be more local content available. It’s a very tiny amount of content that may not be available due to licensing rights. We’re a 100% legal service, so we have everything licensed.”
Krause says that Spotify has had the African continent in its sights for a while, but chose South Africa as the continent’s launch pad due to a combination of music culture and better connectivity. Not mentioned in this context is the fact that, because the service currently requires credit or debit cards, Nigeria poses particular challenges. Many online services do not accept credit card from the continent’s largest music market
“Not everyone has a credit card available,” Krause says diplomatically. “Other payment options will come after the first launch. We will make sure we have all payment possibilities so that people have no boundaries.”
Meanwhile, the South African launch coincided with the service going live in three other countries yesterday, namely Israel, Romania and Vietnam.
Spotify is expected to make a similar impact on streaming music in South Africa as Netflix made on the video-on-demand industry. Netflix came into a market that had been gearing up for its arrival, but it still cleaned up, thanks to a vast and fast-growing catalogue of original content.
This still left room for a variety of niche players, like Digital Entertainment on Demand (DEOD), which emphasis extreme and school sports, Kwese Play, with a strong African focus, and Cell C’s black, which fills various gaps in between.
Music streaming, on the other hand, does not lend itself to providers creating their own content, nor to artists providing exclusivity to one outlet – although there are exceptions. This means anyone in the market for a music streaming service is likely to choose only one. Spotify’s free version, along with the large existing fan base for its paid service, means it will be the first stop for most music lovers.
It is also likely to have one other effect that would not be encountered in developed markets. Because of the massive awareness that will spring from local artists punting Spotify to their fans, it will probably create a spike in app usage by South Africans who had migrated to smartphones but remained wary of data use.
In this way, it may well be a catalyst for growth in industries beyond only music.
* The Spotify app can be downloaded via the Android or iOS app stores or on the Web at www.spotify.com. The premium service offers a 30-day free trial.
Spotify facts and figures
Spotify offers the following curated playlists for South Africa:
Top Hits South Africa
New Music Friday SA
Hip Hop Juice
Made in South Africa
The Hip Hop Circle
Sunday Feels Feel Good Look Good
Nine 2 Five
That Party Feeling
City Back 2 Kasi
- Over 159 million active users
- Over 71 million subscription users
- Over 35m tracks in the catalogue
- Over 2 billion playlists available
- Over €8 billion paid to rights holders since launch in October 2008
- Available across 65 markets including South Africa
Spotify Free features:
- Full catalogue access
- Curated, personalised playlists, background play and charts
- Listen to any artist, album or playlist on Android and iPhone handsets
- Access to the full Spotify catalogue on desktop and tablet
- Create playlists and share with friends on Spotify, Facebook, Twitter, text and email.
- On-demand music with no ad interruptions on computer, phone and tablet
- High quality streaming (320kbps)
- Listen offline
- Use Spotify Connect to play Spotify on a connected speaker, TV and car.
UN calls for electronics overhaul to beat e-waste
Seven UN entities have come together at the World Economic Forum to tackle the escalating scourge of electronic waste.
Seven UN entities have come together, supported by the World Economic Forum, and the World Business Council for Sustainable Development (WBCSD) to call for an overhaul of the current electronics system, with the aim of supporting international efforts to address e-waste challenges.
The report calls for a systematic collaboration with major brands, small and medium-sized enterprises (SMEs), academia, trade unions, civil society and associations in a deliberative process to reorient the system and reduce the waste of resources each year with a value greater than the GDP of most countries.
Each year, approximately 50 million tonnes of electronic and electrical waste (e-waste)
Less than 20% of this is recycled formally. Informally, millions of people worldwide (over 600,000 in China alone) work to dispose of e-waste, much of it done in working conditions harmful to both health and the environment.
The report, “A New Circular Vision for Electronics – Time for a Global Reboot,” launched in Davos 24 January, says technologies such as cloud computing and the Internet of Things (IoT), support gradual “dematerialization” of the electronics industry.
Meanwhile, to capture the global value of materials in the e-waste and create global circular value chains, the report also points to the use of new technology to create service business models, better product tracking and manufacturer or retailer take-back programs.
The report notes that material efficiency, recycling infrastructure and scaling up the volume and quality of recycled materials to meet the needs of electronics supply chains will all be essential for future production.
And if the electronics sector is supported
The joint report calls for collaboration with multinationals, SMEs, entrepreneurs, academia, trade unions, civil society and associations to create a circular economy for electronics where waste is designed out, the environmental impact is reduced and decent work is created for millions.
The new report supports the work of the E-waste Coalition, which includes:
- International Labour Organization (ILO);
- International Telecommunication Union (ITU);
- United Nations Environment Programme (UN Environment);
- United Nations Industrial Development Organization (UNIDO);
- United Nations Institute for Training and Research (UNITAR);
- United Nations University (UNU), and
- Secretariats of the Basel and Stockholm Conventions (BRS).
The Coalition is supported by the World Business Council for Sustainable Development (WBCSD) and the World Economic Forum and coordinated by the Secretariat of the Environment Management Group (EMG).
Considerable work is being done on the ground. For example, in order to grasp the opportunity of the circular economy, today the Nigerian Government, the Global Environment Facility (GEF) and UN Environment announce a 2 million dollar investment to kick off the formal e-waste recycling industry in Nigeria. The new investment will leverage over 13 million dollars in additional financing from the private sector.
According to the International Labour Organization, in Nigeria up 100,000 people work in the informal e-waste sector. This investment will help to create a system which formalizes these workers, giving them safe and decent employment while capturing the latent value in Nigeria’s 500,000 tonnes of e-waste.
UNIDO collaborates with a large number of organizations on e-waste projects, including UNU, ILO, ITU, and WHO, as well as various other partners, such as Dell and the International Solid Waste Association (ISWA). In the Latin American and Caribbean region, a UNIDO e-waste project, co-funded by GEF, seeks to support sustainable economic and social growth in 13 countries. From upgrading e-waste recycling
Another Platform for Accelerating the Circular Economy (PACE) report launched today by the World Economic Forum, with support from Accenture Strategy, outlines a future in which Fourth Industrial Revolution technologies provide a tool to achieve a circular economy efficiently and effectively, and where all physical materials are accompanied by a digital dataset (like a passport or fingerprint for materials), creating an ‘internet of materials.’ PACE is a collaboration mechanism and project accelerator hosted by the World Economic Forum which brings together 50 leaders from business, government and international organizations to collaborate in moving towards the circular economy.
Matrics must prepare for AI
By Vian Chinner, CEO and founder of Xineoh.
Many in the matric class of 2018 are currently weighing up their options for the future. With the country’s high unemployment rate casting a shadow on their opportunities, these future jobseekers have been encouraged to look into which skills are required by the market, tailoring their occupational training to align with demand and thereby improving their chances of finding a job, writes Vian Chinner – a South African innovator, data scientist and CEO of the machine learning company specialising in consumer behaviour prediction, Xineoh.
With rapid innovation and development in the field of artificial intelligence (AI), all careers – including high-demand professions like engineers, teachers and electricians – will look significantly different in the years to come.
Notably, the third wave of internet connectivity, whereby our physical world begins to merge with that of the internet, is upon us. This is evident in how widespread AI is being implemented across industries as well as in our homes with the use of automation solutions and bots like Siri, Google Assistant, Alexa and Microsoft’s Cortana. So much data is collected from the physical world every day and AI makes sense of it all.
Not only do new industries related to technology like AI open new career paths, such as those specialising in data science, but it will also modify those which already exist.
So, what should matriculants be considering when deciding what route to take?
For highly academic individuals, who are exceptionally strong in mathematics, data science is definitely the way to go. There is, and will continue to be, massive demand internationally as well as locally, with Element-AI noting that there are only between 0 and 100 data scientists in South Africa, with the true number being closer to 0.
In terms of getting a foot in the door to become a successful data scientist, practical experience, working with an AI-focused business, is essential. Students should consider getting an internship while they are studying or going straight into an internship, learning on the job and taking specialist online courses from institutions like Stanford University and MIT as they go.
This career path is, however, limited to the highly academic and mathematically gifted, but the technology is inevitably going to overlap with all other professions and so, those who are looking to begin their careers should take note of which skills will be in demand in future, versus which will be made redundant by AI.
In the next few years, technicians who are able to install and maintain new technology will be highly sought after. On the other hand, many entry level jobs will likely be taken care of by AI – from the slicing and dicing currently done by assistant chefs, to the laying of bricks by labourers in the building sector.
As a rule, students should be looking at the skills required for the job one step up from an entry level position and working towards developing these. Those training to be journalists, for instance, should work towards the skill level of an editor and a bookkeeping trainee, the role of financial consultant.
This also means that new workforce entrants should be prepared to walk into a more demanding role, with more responsibility, than perhaps previously anticipated and that the country’s education and training system should adapt to the shift in required skills.
The matric classes of 2018 have completed their schooling in the information age and we should be equipping them, and future generations, for the future market – AI is central to this.