By Niyi Immanuel
So, my first question is: within the last decade, the music industry has scaled to heights that were previously only imagined. You are a front line witness to this growth. What factors contributed to this growth?
The music ‘industry’ has not scaled to any heights. There is no industry.
Why do you say that? The lack of structure?
Yes. Industries are built on structures
True. So what will you call the present situation?
A make or mar phase. We have an opportunity to build a system that works. A system that can ensure the business lives up to potential. There’s a boom in population of young Nigerians. Boom in enthusiasm for local Nigerian music but we have no working system to ensure we can create, distribute and monetize our products. We need a system that is as efficient as what exists in Telecoms and FMCGs at least, and it’s easier now because it can be done digitally. We also need proper business governance for individual organizations; and we need case studies. The industry needs to re-attract all the brains that had fled to Banking, Telecoms and Government.
Can I take you up on monetisation and digitisation too?
Yes please
On monetization, a lot of money is flowing into this ‘phase’. I think the issue is that it is not evenly distributed
Not a lot is flowing. Only crumbs, don’t be deceived. What was total revenue from concerts in 2014? Total revenue from sales? From endorsements? From Content? Then compare to total revenue other sectors like Telcos, radio, TV or VAS companies made from services subsidized by music? Imagine what all the radio stations make? Yet they won’t exist without music; or even the Telecoms who now rely heavily on music and data? Who should get lion share? Music industry revenue should be bigger than Telco industry revenue
A point you are making is the absence of measurement…
Absence of systems, absence of structures, absence of right human capital, absence of funding, absence of data and analytics. Absence of an industry!
And because of this, stakeholders in the phase cannot track the in flow let alone know what they are entitled to. I agree with all you’ve said.
They cannot even get deserved inflow because there’s no capacity. There’s no knowledge. You know what the bible says about knowledge and the lack of it. Now we congratulate celebrities when they get brand endorsements
Yes…
It should be other way round. It should be celebs doing brands a favour by endorsing their brands. It is a celebrity endorsement. The only good thing I see as it were: great pool of talent and the passion of today’s leaders to put systems in place. It’s part of why we set up Nigerian Entertainment Conference.
But the income that has come in recently is way more than the time of Oliver De Coque, Majek etc. Do you agree?
We sold a lot of records in the time of Majek. Pirates were not this comfortable
Well digitisation has changed that. It’s harder to sell records…
There were also not as many opportunities as today. Not so many explorers and exploiters. It’s easier!
Even Pirates suffer. If I may ask sir, why didn’t the players in Fela and Majeks time enjoy endorsements. KSA just got Glo a few years ago after decades of being in the spot light…what changed?
We buy records on iTunes and CDs and Spinlet. We buy records from MTN and Airtel and Glo. We buy from everywhere. It’s format that has changed. Just as telecommunications too has changed, media too has. Technology has disrupted everything for the better. Musicians don’t need brand endorsement. Brands need endorsement from musicians to sell products. Musicians never needed the brands to endorse them. It’s poverty that has now made it a norm, because we are not generating our own revenue. Same way states are at mercy of FG because we they have failed with IGR
So, what are the positives?
Pool of great talent. Great potential. Opportunities waiting to be grabbed.
You hinted at them during NEC
Opportunities that technology provides. We can make billions. The numbers are clear, but we have to put systems in place first. If not only the Telcos will make that money. Most of the Telcos are now behaving like labels and ICT companies. Music businesses need to think that way.
Where are the numbers from?
The numbers are in the data available. From the population of young Nigerians, number of visitors to music sites, numbers of downloads on CRBTs, figures on Nigeria’s internet penetration. The figures are clear.
About piracy, I am of the opinion that it was a blessing in disguise. That even though it was a bane, it gave our music the reach that only technology can now match
Piracy is never a good thing
The point I made earlier that it was a blessing in disguise…?
No
But it took our products to parts of Africa that we could not reach. And this translated to substantial income. P Square for instance gave an interview to CNN where they said that they got as much as $100K / concert as far back as 08/09. What do you think about that?
That wasn’t piracy. It would be unfair to credit piracy for that. That was radio DJS, promoters and cable TV
You said we are at the make or mar phase…what is the worst-case scenario from your perspective?
The Telcos will continue to make a killing. Practitioners will continue to suffer and exit. Do you have my speech at the 2015 Nigerian Entertainment Conference?
Yes I do but the Telcoms are businessmen.
Yes. That’s what the people in music should be also, businessmen and women.
I think the labels and the artists need to come together and act as one. Sadly, artists are running to the Telcos at the risk of the labels
Yes, they need strong associations and regulations because the labels offer nothing extraordinary. Labels need to be better-capitalized and better run. And many can take lessons from Chocolate City Music and Mavin who are trying to change the game, against all odds.
About regulation, do you think Government should step in?
Government needs to enforce the laws and create a better country. Government needs to review piracy laws and be serious about enforcement and they must stop giving out money. We don’t need handouts. We need an industry and a system that works.
But for the artistes to be able to hold their own against exploiters they need some good income. Where do you reckon they can get these from sir?
Once we fix circulation and fix merchandising and other extensions. Imagine if every 2face fan has a 2face T Shirt? Imagine if Koko mobile is in every hand that Tecno is?. Imagine…
But Aba is there to mass-produce those shirts. It’s a cycle.
That’s piracy and Government can stop that.
Pardon me but you have mentioned only two positives. Large pool of talent and Technology
I’m sorry. What else? All we have is potential. I’m open to education
Wow…What about the talent managers?
Endangered species
I feel their foreign exposure (a lot of them schooled abroad) has played a role in formalising the music phase
A: A lot of them? Talent managers? I can count the good ones on my fingers. Most of them have moved to more promising industries or moved abroad.
