Stretch Hold Music Group: The Kenyan music start-up seeking to put artists at the centre of the game

“After getting to know each other better, we realised we not only shared a passion for music but were acutely aware of the shortfalls in the local industry,” Mulla tells Music In Africa.

Soon an idea to start a record label was mooted, and three years later, in 2021, SHMG was officially launched, with North Macedonian business and product analyst Mirjana Davcheva joining as the third partner.

“Reuben and Mirjana met online while working on an artist promotion project and we realised she not only held a similar vision to ours but possessed unique talents that would help us expand the scope of our services beyond production,” Mulla says.

“Apart from seeking talented artists who have a unique sound and are committed to their craft, we also knew that we needed to provide them with the support and the tools needed to succeed in the industry.”

Now boasting a roster of over 50 artists from Africa, Europe, the US and India, it seems what the trio set out to achieve is working. To find out more, SHMG co-founder Mulla talks Music In Africa through their journey.

MUSIC IN AFRICA: What gap(s) in the music market were you looking to fill when you started out?

DERRICK MULA: The main one is lack of representation. Many mainstream music labels tend to focus on a narrow range of genres and styles that they believe will be commercially successful. This can leave many talented artists without a platform to share their music.

We also discovered that many artists lacked the skills to market themselves and their work, so we introduced a range of services such as promotion, distribution, publishing administration, video distribution, sync licensing, artist management, and more.

How has the journey been so far and how many artists do you currently have on your roster?

The journey so far has been amazing. When we started the company during the pandemic, it was very difficult to find artists and convince them of the benefits they would gain if they started working with us. Our first signing was a Ugandan artist who went on to become the biggest advocate of our work. With Mirjana us joining she also brought in several artists from her country and region, expanding not only the genres and styles of the music we handle but introducing us to new cultures.

I would say the turning point for SHMG has been this year when the number of artists we work with hit 50. The artists represent diverse genres ranging from hip hop, Afrobeats, traditional, Hindi pop, rock and everything in between.

What differentiates SHMG from other similar companies?

SHMG sets itself apart in several ways. First, we offer artist-friendly deals that prioritise fair compensation, transparency and ownership rights. We work closely with our artists to develop their talent, enhance their creative vision and provide them with the necessary resources and opportunities to thrive. This approach helps to establish long-term partnerships and build successful careers for the artists.

SHMG also employs innovative marketing strategies to promote our artists and their music. We excel in personalised marketing and promotion strategies tailored to each artist’s unique brand and target audience. We leverage data-driven insights to identify the most effective channels and platforms to reach the right listeners.

How are you financing the venture and what are some of the expansion plans you are working on?

We used our own savings and personal funds to finance the initial stages of the business. But we plan on getting investors.

Some of the expansion plans we’re working on include expanding our operations to other countries and partnering with international record labels to tap into global markets. We also want to increase the number of distribution channels by securing partnerships with digital music platforms and physical retailers to ensure the label’s music reaches a broader audience. We are also looking to introduce an artist development mentorship programme to provide resources and support to help our artists grow and evolve their careers. In July we will be launching our new website which will allow even more artists to interact with us and get to understand our services better.

What do you think is holding the East African music industry back?

Piracy and unauthorised distribution continue to be the biggest obstacles affecting the industry’s ability to monetise music effectively. Another challenge is the lack of transparency and accountability in royalty collection and distribution systems. The absence of adequate infrastructure and resources for talent development and artist support also hinder growth.

How is technology helping shape the industry?

Technology is revolutionising the way content is created, distributed and consumed. We would also say new advancements have been made possible by technological developments such as digital streaming, virtual reality, artificial intelligence and social media, giving both creators and consumers more accessibility, convenience and involvement. Technology has also enabled the industry to use data analytics and targeted marketing to increase revenue streams, enhance efficiency and better understand consumer preferences. In a nutshell, it has provided endless opportunities for innovation and growth.