Music streaming platform, Spotify, has said it paid over N25 billion in streaming royalties to Nigerian artists in 2023.
The company disclosed this in its annual Loud & Clear report focusing on the Nigerian market. According to Spotify, the 2023 earnings for Nigerian artists more than double the over N11 billion they earned from the platform in 2022.
Spotify added that royalties to Nigerian artists have increased by 2,500% since 2017.
It is important to note that Spotify is one of many music streaming services that generate revenue for the music industry. The artists also earn revenue from other platforms such as YouTube Music, Apple Music, and Amazon Music, among others.
While this came as the second time that Spotify is releasing its data specifically on Nigeria, the company said releasing the data became imperative to increase transparency in the music industry by sharing its royalty payments and breaking down the global streaming economy, the players, and the process.
A global report released earlier in the year revealed that the company paid a total of $9 billion in royalties to artists globally in the past year.
More insights
The data released by Spotify also revealed that the number of Nigerian artists earning over N10 million in royalties quadrupled since 2018. It added that over half of the royalties went to independent artists or labels, showcasing the democratizing power of streaming.
The report also indicated that Spotify listeners discovered Nigerian artists nearly 950 million times in 2023.
Commenting on the report, Spotify’s Managing Director for Sub-Saharan Africa, Jocelyne Muhutu-Remy, said,
“The significant growth in royalties earned by Nigerian artists on our platform is a powerful testament to their talent, creativity, and global appeal.
Muhutu-Remy added that while Afrobeats remains the king, Nigeria’s music scene is experiencing a genre revolution as Spotify data reveals increased popularity across local genres.
According to her, homegrown genres like Highlife grew by 224%, Igbo Pop increased by 303%, and Fuji grew by 187% as they all experienced a significant increase in listenership in 2023.
The streaming revolution in Africa
Boosted by technology, allowing artists to reach audiences beyond their borders and benefit financially from their craft, Africa’s music scene has been growing steadily.
According to the 2024 International Federation of the Phonographic Industry (IFPI) report, the Sub-Saharan Africa market boasts the world’s fastest-music growing revenue with a staggering 24.7% growth increase.
This growth is fueled by a surge in paid streaming services, contributing 24.5% of the revenue. Notably, the report stated that Sub-Saharan Africa is the only region surpassing 20% growth.
“There was a positive story of growth across the globe; every region had healthy revenue growth in 2023 and five regions posted double-digit percentage gains. Sub-Saharan Africa remained the fastest-growing area,”IFPI stated in the report.
(Nairametrics)
