Sony Music withdraws catalogue from Boomplay amid unpaid royalties dispute

A source familiar with the issue tells Music In Africa that the development is despite Sony Music’s catalogue being hosted on Boomplay’s paid tier. The source noted that the removal includes works by Afrobeats stars like Davido, Wizkid, Tems, and Lojay, as well as tracks distributed by The Orchard and AWAL, adding that Sony is not the only label owed royalties by Boomplay.

The news also follows last month’s revelation that Boomplay CEO Phil Choi was stepping down from the company after six years to join Warner Music Group.

Founded in 2015, Boomplay claims to be Africa’s leading music streaming platform, boasting over 300 million downloads and licensing partnerships with other major industry players like Universal, Warner, and TikTok.

In recent months, Boomplay, with a presence in Kenya, Tanzania, Ghana, and Cameroon, has been reducing staff across Africa in what Music In Africa understands to be a cost-cutting measure. Music In Africa also understands that there have been recent efforts by Boomplay to renegotiate royalty value and payment with major labels.

While sub-Saharan Africa’s recorded music market was the fastest-growing in both 2023 and 2022, as reported by the International Federation of the Phonographic Industry (IFPI), streaming platforms in Africa face significant profitability challenges, primarily due to freemium models and low conversion to paid subscriptions.

Even globally, streaming remains challenging in terms of profitability. Spotify, the world’s largest DSP, which paid Nigerian artists around $17 million in royalties in 2023 – a 2,500% increase since 2017 – and South African artists about $14 million, a 240% rise since 2019, is on track to achieve its first-ever profitable year in 2024, with projected earnings of $1.5 billion.

Speaking to Music In Africa months ago on the current state of music valuation, the need to rethink current economic models, and the future of African music, Nigerian lawyer Foza Fawehinmi noted that: “Music as a product or commodity is grossly underpriced and undervalued just generally in the world,”  adding that current economic models prioritise consumer interests over those of the creatives. To her, bundled packages, for instance, which typically offer access to vast music libraries at low monthly fees, often leave artists with a fraction of the revenue generated. “You’re left with maybe less than 50% of that money to be shared amongst 5 000 contributors.” 

Meanwhile, in October, Boomplay Nigeria general manager Ibrahim Oladele Kadiri said his outfit has “been active in making a difference beyond our core mandate as a streaming service, focusing on artist support, advocacy against piracy, music promotion through our online and offline assets, and prioritising African content.” 

He added that Boomplay’s mission revolves around bringing “everything music to Africa and helping the world discover Africa… With respect to the artist and user, we are building the most reliable and transparent digital music ecosystem in Africa.”

Earlier this month, Sony Music Entertainment announced the acquisition of Greek label Cobalt Music, the latest in a series of strategic investments by Sony Music Group. During Sony Group’s annual Business Segment Meeting in May, Sony Music Group chairman Rob Stringer emphasised the company’s aggressive M&A approach: “We are undoubtedly the most aggressive major music group in M&A over the last three years.”