Business
The World’s Biggest Music Companies are Scrambling to Sign African Artists By Christopher Sam
Fueled by a young population, great musical talent, and more streaming opportunities, Africa’s music industry is booming, and the world’s major record labels are taking notice. UNIVERSAL MUSIC GROUP and Warner Music Group, two of the world’s biggest record labels, have their sights on the continent. In the past few years, they have been signing top African artists, hiring personnel for their operations in the continent, and entering deals with local labels and music streaming companies as they strategically position themselves for a share of Africa’s growing music earnings. Just last month, Universal’s African division, Universal Music Africa, announced the signing of the South African Gospel choir MTN Joyous Celebration. That same month, Warner Music Group said it had appointed music executive Temi Adeniji to the combined role of managing director of its African affiliate, Warner Music South Africa, and senior vice president for strategy for sub-Saharan Africa. Africa’s music industry is shaping up against a healthy outlook for music sales globally—good news after a year without performances and gigs due to the coronavirus pandemic. Recorded music revenues grew in every world region last year, including Africa and Middle East, according to the most recent Global Music Report by the International Federation of the Phonographic 14
May-June 2021
Congolese artiste Dena Mwana draws a crowd. Universal Music Group and Warner Music Group have their sights on the continent.
Industry, which featured Africa and the Middle East as regions for the first time. Revenue from recorded music in Africa and the Middle East increased by 8.4% in 2020 from 2019. Streaming revenues in the region went up 36.4% from the previous year, and were the main revenue source for the music industry as a whole for the region. “K-Pop continues to make great strides, of course, but I would argue the most exciting development this year has been how African music and African artists have been embraced by fans worldwide,” Simon Robson of Warner Music Group said in the report, citing global megahit Jerusalema by South Africa’s Master KG and Nomcebo as an example. (The label purchased the rights to Master KG’s Jerusalema album after its release.) “The outlook for Africa is very positive,” says Sipho Dlamini, CEO of Universal Music South Africa and sub-Saharan Africa.
Expansion Move is New Universal Music Group has been operating in Africa for more than 30 years, centered in South Africa, but started branching out into the continent a few years ago. One of its big moves
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