Music streaming as a measure to bolster South African music industry
Music streaming is something that the South African music industry will be relying on heavily in the future. It’s no secret that album sales are at a record low. What does appear to be gaining in popularity is the ease and efficiency of music streaming.
According to a report by global auditing firm, PricewaterhouseCoopers, the South African music industry is going to be leaning on this avenue in order to make money. The report was focused on SA, Nigeria, and Kenya.
The sales of albums in South Africa fell by 1.2% to R2.0 billion ($145 million) in 2015. With the global music streaming movement gaining momentum it provides a possible solution to making up the profits otherwise lost.
How much growth?
Music streaming is expected to bolster growth by 4.4% annually over the upcoming four years. By the time we get to 2020 it is predicted that we should reach R2.4 billion.
In 2015 digital music streaming revenue earned R74 million ($5.4 million) but this is expected to increase as much as R437 million ($31.8 million) in 2020, contributing a large percentage to the total revenue. Sales from recorded music is expected to fall from R841 million ($61.3 million) in 2015 to R777 million ($56.6 million) in 2020.
“Although physical music continues on its downward trajectory and downloads look set to fall out of popularity, it is streaming revenue that will single-handedly be responsible for keeping recorded music revenue from large falls,” say PwC.
Live music performance has also been growing amongst artists as paying gigs prove to be where the money really is at in the business right now.
“In spite of widespread disruption in the entertainment and media industry, as well as intense competition for consumer attention, there are growth opportunities aplenty for companies to capitalise from in the new media landscape. Although the forecast CAGR of 11.7% (for the entire Entertainment and media industry) is lower than previously predicted, this still makes internet access by far the largest contributor to total Entertainment and media industry spend.” said Vicki Myburgh, Entertainment & Media Industry Leader for PwC Southern Africa