The acts are supported by BET International, MTV Base Africa, Channel O, Soundcity and Trace Africa, which have all backed local music rather than acting simply as an outlet for U.S. acts. ‘In 1999, radio was 70%-80% foreign music, principally American. Today, it’s very hard to hear international music in Lagos,’ Storm 360’s Asika says. ‘Not because it’s not available or acceptable. It’s just that local artists have built up to a level that they’re preferred now.’
Africa’s status in the touring industry for both local and international acts is also on the rise. Artists like Wizkid, D’Banj and P-Square have sold out theaters in London and New York. Meanwhile, Big Concerts, a South African-based touring and promotions company, brought Lady Gaga and Linkin Park to South Africa at the end of 2012 after previous turns with Bon Jovi and Lionel Richie. Another top touring artist is Senegalese-born Akon, who has also signed Wizkid and P-Square to his Konvict label in alliance with Universal Music Group.
‘There is a strong appetite for international repertoire and good business is done across a number of genres including pop and urban, which is why acts like fun., Mars and Bublé do so well in South Africa,’ Fraser says. ‘From a touring perspective, there has been steady growth on that circuit. While it’s largely dominated by big names, there are growing opportunities for developing artists. We expect to see growth in certain territories over the next three to five years.’
However, touring still presents logistical and practical challenges, according to Asika. A considerable stumbling block is the prevalence of sponsor-activated shows, which Asika says ‘makes it very hard to build a tour. If the resident telco has three of the hottest artists in the country and is doing a show for free, how are you going to come back next week and charge people?’
With 176 million subscribers, according to Gayle, Africa MTN is twice the size of AT&T, though it has an average revenue per user at about one-sixth of the U.S. operator. According to local estimates, mobile music sales in Nigeria alone last year amounted to $150 million.
‘Africa is one of the world’s fastest-growing mobile markets,’ Fraser says. ‘The rising number of people with mobile handsets, combined with the increasing availability of [third-generation] services, has had a positive impact upon the uptake of digital music services and has become a growth area for the music industry.’
Despite the rosy business potential beckoning in Africa, major obstacles still need to be addressed. Chief among them: piracy, securing government protection of intellectual property, building a sustainable infrastructure to monetize the home markets, increasing assets for investment capital and standardizing rules in regards to performing rights. Currently each country has its own performing rights system.
But things are improving. ‘Attitudes and business climates are changing,’ says Farai Msika, managing director of London-based entertainment firm Friday Arts and Media. ‘Technological innovations together with rising entrepreneurial efforts in entertainment, finance, partnership, policy and trade are creating a healthy environment in Africa.
Photo Credit: Joseph Okpako|WireImage|Getty Images|Sync Photos
