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The revenue from recorded music in Nigeria has been projected to hit $50 million (N18 billion) by 2020, a 34 per cent increase from the $33 million revenue in 2015; N11.8 billion using the current exchange rate of 360. This growth was captured in the “Nigerian Recorded Music Industry Report (2015 – 2020)”, recently published by the Disruptive Creative Economy Meeting (DCEM) group, which describes it as the first detailed industry report.
According to the report, the Nigerian recorded music industry is poised to spike in growth significantly over the next 3-5 years. As mobile and internet penetration continues to deepen, coupled with a steady growth in the purchasing power of larger proportion of the population, consumption of entertainment products will only increase.
Also, as internet access becomes more pervasive – thereby increasing the proliferation of service providers – competition in service supply, as well as more “bundling”/zero-rating of entertainment products, will result in a decrease in the effective cost of data. This would mean subscribers having more money to spend on entertainment products such as music and video.
The report draws a direct nexus between a thriving telecommunication industry where costs of services are cheap, and the possibilities for increased revenue in the music industry. The Caller Ring Back Tone/Ringtone (CBRT/RT) service and Streaming both account for between 66 per cent and 85 per cent of revenue between 2015 and 2018. The contribution of both sources is projected to increase even further in the coming years, with digital sources considered to offer more data and transparency of how much has been earned by content producers.
Olumide Mustapha, lead researcher and founder of Technolawgical Partners, which authored the report, noted “Data, or a lack thereof, is one of the biggest criticisms against the Nigerian music … Read More...