5 takeaways: Tiwa Savage and Universal Music Group deal

The deal marks the end of Tiwa Savage’s 7seven-year arrangement with Mavin Records, the record label founded by popular music producer Don Jazzy.

Here are five implications of the artist's new deal:

1. The brand

The deal means Tiwa Savage, who once toured with Mary J Blige, might be coming full circle. She worked with an American at the start of her career; she is now signed by an American label.

The deal has added one more dimension to such online arguments concerning who is a bigger artist between her and any other female pop act from Nigeria. Such arguments never really end but Tiwa Savage fans have now acquired new ammunition in the (probably fictitious) battle for superiority.

2. The sound

A common fear when an artist signs to a foreign label concerns how much of a change might creep into her established sound. The fear is not unfounded as the first projects from Wizkid and Davido showed a couple of years ago.

It is not possible to tell if the same might befall Tiwa Savage but it does appear that she has thought about it long before the new deal was signed. Back when she got a deal with Jay-Z's Roc Nation in 2016, she explained that the foreign executives were “not really trying to change the sound. I would say maybe branding and artist development [might change]—in terms of, our music industry is completely different in Africa than it is in the US or UK—so it's just learning a different infrastructure. The product is still the same”.

While her fans would hope that is still the case, it must be said that Tiwa Savage has one advantage over Davido and Wizkid: she is likely more familiar with working with the sound, given her background in the US music industry at the start of her career.

3. The money

With an upgrade in status comes an upgrade in performance fees. As the Nigerian music industry is heavily driven by performances, it is expected that Tiwa Savage’s management demands higher charges for the artist to appear at concerts.

The deal also gives Tiwa Savage an opportunity to perform in more places, as the global reach of Universal Music is considerable. New audiences lead to new revenue sources. Another way by which her bank balance is certain to improve is via direct sales of her music, either physically or digitally. She is certain to make more money from such sales given the degree of American monetisation of music content and the heavy loss of income due to piracy in Africa.

The figures are in favour of the Nigerian artist: Based on the financial results from the first quarter of 2019, Universal is doing very well. Not only has it recorded an increased revenue of 19.2% year-on-year, but its earnings from streaming have also gone up 28.1%. Universal is unlikely to make the error Sony Music did with the Wizkid and Davido projects, both of which weren't distributed within their home country, leading to a loss of revenue for the artists.

4. The music scene

There can be no more arguments about the dominance of Nigerian pop on the continent. The country’s top four stars—Wizkid, Davido, Burna Boy and Tiwa Savage—all have deals with major players in the global music business. With these deals and the possibility of more foreign collaborations, Nigerian music has a chance to influence global pop on a larger scale than it has done already.

For newer acts, this courting of Nigerian artists by global players provides a model and an assurance that, if things work out well, it is possible to attract the right partners as a career progresses.

5. The former boss

The exit of Mavin Records biggest artist might suggest that the label is in a bit of crisis, especially as some of its less prominent artists have also left the label. But there might be a bit of a silver lining for the label. With Tiwa Savage’s exit, there is an opportunity for her erstwhile label to sell itself as an incubator for artists with the potential to reach a global audience. In the meantime, the label’s boss has done wonderfully at quelling any rumours with a statement released shortly after Tiwa Savage’s departure.

“We at Mavin would like to say a very big thank you for being such an inspiration to all of us, a friend, a sister,” Don Jazzy wrote. “It’s been an epic journey with you and we are very proud of what we have achieved together. As you start this new chapter in your life we want you to know that we are solidly behind you and can’t wait for the world to see what we have always believed you can be.”

It appears Don Jazzy has already begun the process of reselling the Mavin brand. It is as yet possible that both past and new labels will benefit from Tiwa Savage’s big move.