The Revenue Streams For Africa Musicians project

Access our report on revenue streams for music creators in South Africa
3,000
9
1
18
ZAR VERSION
USD VERSION

KEY TAKEAWAYS FROM THE REPORT

Without reliable information, including statistics and industry intelligence tools, music creators will always struggle to make informed decisions and to fully monetise their works. Responding to this challenge, the Music In Africa Foundation (MIAF) launched the pilot phase of the Revenue Streams for African Musicians (RSFAM) project in South Africa in 2020.

The main goal of this report is to highlight the revenue streams that work for music creators in South Africa. We hope that this report will be useful in guiding music creators and the industry at large to make informed decisions, adopt new revenue streams, expand earning capacities and become more self-sustainable. The overview below is intended to give you an idea of what is in the report. Please download the attached PDF for the full report. The report is presented in South African Rands and US Dollars.

 

A monthly total of

R
141,568,500

is reported as earned by participants across all streams.

A monthly amount of

R
9,890

is the average revenue an active South African music creator earns.

Total monthly revenue split

In terms of the total monthly income, the Live Performance category has the highest revenue contribution of R42,222,000, which is 36% of the total revenue. Services income comes second at 30% (R35,498,000) followed by Grants and Funding income at 19% (R22,451,000). Brand-Related Revenue amounts to 13% (R14,736,500). The smallest income is reported in the Music Rights category at 2% (R2,660,500).

Average monthly revenues

When considering average monthly income in each revenue category, the highest figures appear in Grants and Funding. This stream’s average monthly income accounts for 38% of total average monthly revenue, followed by Live Performance revenue at 19%. Brand-Related Revenue and Services revenue are similar, with each constituting 14% of total monthly earnings, while Music Rights revenue accounts for 15%.

Average income: Grants & Funding

R
21,650

per month

Average income: Live Performances

R
11,076

per month

Average income: Music Rights

R
8,664

per month

Average Brand-Related Revenue

R
7,897

per month

Average income from Services

R
7,850

per month

LIVE PERFORMANCE REVENUE

The Live Performance category includes four key earning possibilities: ticket sales revenue, live performance fees, revenue from splits on drink sales and busking. 

Average live performance revenue

Live performance fees paid directly to creators offer the biggest average monthly revenue contribution, at R12,389.  Ticket sales have an average of R10,744, while revenue derived from a percentage of drink sales amounts to an average of R7,428. The smallest revenue generator in this category is busking, at a monthly average of R 2,649.

SERVICES REVENUE

The Services category is the broadest, with a total of 19 key revenue-generating possibilities. Music creators can, therefore, diversify revenue from multiple services. The top revenue stream within this category was equipment rental (with an average income of R25,196 a month). The lowest-earning revenue stream within this category was translation of lyrics into another language, at an average monthly earning rate of R 2,786.

Average services revenue

GRANTS AND FUNDING REVENUE

Six revenue streams were recorded within the Grants and Funding category, namely government grants and relief programmes, academic grants, patronage models, crowdfunding and non-fungible tokens (NFTs). Government grants and relief programmes had the highest average monthly revenues. Crowdfunding had the lowest.

Average grants and funding revenue

MUSIC RIGHTS REVENUE

The Music Rights category comprises ten revenue streams based on music royalty distribution systems. Commissions are top in this category, with income recorded from participants amounting to a total of R 5,460,000 in a month and a monthly average of R29,836. Average monthly incomes - It is worth noting that revenue streams in this category are largely based on payment schedules set by Collective Management Organisations (CMOs) in South Africa. Therefore, income from Music Rights is ‘seasonal’ in nature.

Average music rights revenue

REVENUE BREAKDOWN BY PROVINCE

Music creators are often under pressure to relocate to major cities as a way to maximise earning opportunities. This section details earning trends within the nine different provinces of South Africa. It is important to note that the figures presented in this section do not necessarily imply that all reported revenues were earned inside the province where the music creator is based, as artists based in KwaZulu-Natal can still earn income from Gauteng, etc. It does, however, indicate that artists can earn considerable income regardless of where they are based. Musicians based in KwaZulu-Natal had the top Live Performance, Brand-Related Revenue and Music Rights average monthly earnings. Those based in the North West Province reported the highest Services and Grants and Funding average monthly earnings.

Revenue breakdown by province

REVENUE BREAKDOWN BY WORK AREA

Reported revenue was also analysed in terms of the kinds of areas in which music creators work. Work areas were categorised into five main groups, namely: urban, peri-urban, small towns, rural towns and other areas. While musicians made the highest total revenue in urban areas, this was largely due to a greater proportion of survey respondents working in those areas.

Average revenue breakdown by work area

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