… streaming royalties soar by 127% year-over-year

Oredola Adeola

This surge in earnings represents a 2,500% rise since 2017, showcasing the substantial growth in revenue for artists from the platform.

It is noteworthy that Spotify is just one of the various music streaming services contributing to the income of Nigerian artists, who also benefit from platforms like YouTube Music, Apple Music, and Amazon Music.

Spotify’s annual Loud & Clear report specifically focused on the Nigerian market, shedding light on the substantial growth in royalties for artists.

The company’s transparency in sharing royalty payments aims to provide insight into the global streaming economy, highlighting the impact on artists and the industry as a whole.

Advisors Reports gathered that the surge in streaming revenue highlights the immense talent and creativity of Nigerian musicians, who have been making waves across the world with their unique blend of Afrobeats, highlife, and other genres.

The increased earnings also underscore the significant impact of Nigerian music on the global music industry and the growing demand for African music worldwide.

The data released by Spotify revealed that the number of Nigerian artists earning over N10 million in royalties has quadrupled since 2018, with a significant portion of royalties going to independent artists and labels, demonstrating the democratizing effect of streaming.

Moreover, Spotify listeners engaged with Nigerian artists nearly 950 million times in 2023, underscoring the increasing popularity and global appeal of Nigerian music.

Jocelyne Muhutu-Remy, Spotify’s Managing Director for Sub-Saharan Africa, emphasized the talent and creativity of Nigerian artists, noting the genre revolution within Nigeria’s music scene.

While Afrobeats continues to dominate, local genres like Highlife, Igbo Pop, and Fuji have seen substantial growth in listenership, with increases of 224%, 303%, and 187%, respectively.

The music industry in Sub-Saharan Africa is experiencing remarkable growth, with a 24.7% increase in revenue, making it the world’s fastest-growing music market according to the 2024 IFPI report.

Paid streaming services have played a significant role in this growth, contributing 24.5% of the revenue.

Sub-Saharan Africa stands out as the only region surpassing 20% growth, reflecting a positive trend of expansion and opportunity for artists to reach wider audiences and benefit financially from their artistry.

Advisors Reports’ in-house analyst’s checks showed that success of Nigerian musicians on Spotify is expected to continue in the coming years, as the platform continues to expand its reach and more people discover the rich and diverse music scene in Nigeria and across Africa.

Olayinka Sobola, the Executive Director of Gruvly Music, acknowledged the improvement in revenue but raised concerns about the industry’s global competitiveness.

Sobola emphasized that despite the significant growth, Nigerian artists still face challenges in competing on a global scale, citing lower subscription rates as a key issue.

He pointed out that due to higher subscription rates in South Africa, artists from that region earn more from streaming royalties, highlighting the need for Nigeria to address its subscription rate to boost revenue for its musicians.