Music streaming in Kenya – an insider’s perspective

Operating on what many industry insiders considered an untenable music business model, the trio pushed on, happy to play for their handful of followers in Nairobi’s bohemian bars and cultural centres.

Then, in 2010, the unexpected happened: after routinely uploading the video of ‘Ha-He’ on YouTube, Kenyans, for some strange reason, took a liking to it... and the song went off the charts, earning Just a Band the recognition and appreciation they had never imagined possible. Although the group has since disbanded, with its members concentrating on individual artistic pursuits, that uncomplicated act of uploading a video online helped push Just a Band in the pantheon of Kenyan music.

Today, streaming is the standard of the music business. It involves a dizzying amount of money, with millions of artists benefiting in much the same way Just a Band did in terms of earnings and exposure. But as much as it has contributed to the success of many international acts, countless musicians in Africa are yet to fully reap the benefits, mainly because the continent was overlooked for a long time by major streaming platforms, and due to lack of access to affordable and stable internet.

According to Weetracker, as of June 2021, global streaming behemoth Spotify had set up base in more than 39 African countries, bringing renewed optimism to the continent’s underpaid artists. Currently there are more than 25 homegrown and international web and mobile music streaming platforms on the continent – all seeking to engage Africa’s 1.2 billion youthful population.

So does this mean that the ‘Promised Land’ is on the horizon for African musicians, or do we need to place our optimism on hold? To help us put things into perspective, Music In Africa spoke with industry insider Billy Warero, a sales executive at MTECH Communications, which specialises in digital solutions in some 10 African countries.

MUSIC IN AFRICA: What can you tell us about the music streaming business?

BILLY WARERO: I’d like to approach it from the perspective of where artists actually earn and platforms that actually bring in the revenue.

Which platforms are out there?

I would use CD Baby to put all my content on all digital platforms and earn royalties from Spotify, Apple, Music, Deezer, Tidal, YouTube, YouTube Music, Pandora, Amazon Music, Facebook/Meta, TikTok and Instagram. These platforms can provide artists with good revenue. Further, there are region-specific platforms such as Boomplay. South Africa has several of her own, and in Kenya we also have a number, like Safaricom Baze Music, that allow for direct purchase and streaming of content. Others exist and have existed such as Mdundo and Waabeh. However, ringback tones are reshaping content due to the mass market framework.

How is this helping artists in terms of revenue and growth?

Streaming revenue varies. Primarily, shows and gigs were the defining source of day-to-day income, with digital platforms supplementing income. In a COVID-19 world, artists have been forced to rely primarily on digital platforms. Streaming revenues are not at the same level with the gig economy. Big artists do get great payouts but concerts pay more. In Africa, digital ringback tone services have increased revenues significantly for artists. For some, it’s their primary revenue earner above the popularly known Spotify and YouTube. This is because the platform targets the mass market, and with monthly income from millions of subscriptions, it’s an easy way for short-form snippets to earn large amounts of revenue. Outside Africa, it is all about sync licensing, which involves content created and aligned to video games, movies, TV shows, ads, et cetera. It is doing much better than traditional streaming. This is also accessible on platforms such as CD Baby.

Are artists getting due compensation for their work?

Yes, in the models mentioned just before. When an artist signs up on global platforms, royalties are sent to the bank on a monthly basis.

What is the general state of streaming in Kenya?

Streaming is great in the formats of ringback tones and sync licensing. Global streaming is okay but only for big artists. There has been some downfall in regional platforms such as Mdundo and Waabeh, as the costs of maintaining such platforms outweigh earnings.

What can be done to make streaming more rewarding for artists?

The question is more about what the artist can do to grow their platform and make content that aligns with the most profitable models. A true commercial artist would be able to take this perspective. Today’s artists have to adapt or fail.

On which platforms can artists expect to earn the most money?

Platforms like CD Baby and TuneCore aggregate earnings from multiple digital service providers, not just YouTube, so earnings are broader. Currently, TikTok and Instagram are top earners for artists as novel models of content streaming.