– A succinct insight into how American Capitalists are betting on Nigerian music industry in the last few years.
– With the Nigerian music industry projected to generate $44 million in 2020, many investor are keen on catching in on the wave
– Universal, Sony and Warner Group are already taking strategic position with bureau units and partnership deals
When nightfall descend upon the streets of Lagos, only two things are constant: Traffic and Music. And while the former may ease after many sweaty moments, music never does. Like thermodynamic, it can be converted from one form to another.
With a thudding bass that is interloped by complex intersecting rhythms and then marshalled by chanted vocals, music rides through every drive in this megacity with a sad widening inequality gap.
Lagos is a simulacrum of Portharcourt, Benin, Owerri, Jos and a stretch of other major cities bringing great tidings of how music has equally-yoked with the Nigerian culture and even more so, how it has, against the backdrop of a scrappy social economy, spawned a never ending batch of music artists that are thronging the global stage – attracting a growing smidgen of American capitalists.
With a population rolling over 200 million people and a slew of local artist seeking opportunities to touch base with an embracing global audience, Sean Watson, Managing Director of Sony Music Entertainment Africa, in 2017, was certain that the world’s second-largest record company’s decision to opened a workstation in Lagos, positioned to strategically net in rising talents from the West African shores was an investment worth it onions.
Two Years later, Universal Music Group, the world’s largest by all parameters expendable announced a significant expansion of operations within Western Africa. That moved birthed Universal Music Group Nigeria, the unit that tapped up Tiwa Savage, arguably Africa’s biggest female brand, committing a whopping $1.1million into the deal in 2019.
But the American capitalist don’t have their eyes on artists alone, they have set sail to conquer the whole nine yard including Nigeria record labels that acts as pivots.
Warner Music Group (WMG) in 2019, also announced a pioneering partnership with Chocolate City, one of Nigeria’s most influential independent record label that boast on it roll call, longstanding award wining rapper MI Abaga and four times Grammy award nominee Femi Kuti, son of legendary Afrobeat maestro Fela Kuti
Don Jazzy’s Mavins Record whose business model is more of a music ecosystem closed a multimillion dollar deal in January, 2019, with US private equity firm, Kupanda Capital. Kupanda’s interest presents a deeper insight into how those who understands Africa are investing in the continent considering that the firm is managed by Bobby Pittman. Pittman commands an expansive experience in the African terrain while working with former US president George W. Bush as an assistant secretary of state for Africa.
Also in early 2020, Olamide, Nigerian rapper and head of YBNL, signed a joint venture deal with Empire Distribution, an American music distribution and record label.
Venture capitalists are noticing a wave of international acceptance of Nigerian music that is partly catalysed by a surge in internet penetration, including streaming growth and social networks popularity.
Bullish American financiers see the music sector as an alternative mechanism to tap into the growth in Africa’s largest economy without becoming entangled in the politics of oil and retail.
Before the pandemic, Nigerian artists have fully flourished on international tours and concerts, commanding an enviable number of sold out arenas and concert venues
Long before now, in 2018, Wizkid became the first African artiste to sell out the Skyway Theatre Minneapolis and the O2 Arena London, UK.
Davido replicated the same feet a year later, selling out the O2 Arena and then performing before 10,000 fans in Suriname, a hugely unknown South American state.
Burna Boy, Tiwa Savage, Yemi Alade, Flavour had all added a number of internationals sold out events to their credits and by extension giving credence to the global adoption of Afrobeat and the Nigerian brand of music.
For Nigerian artists, growth and success is extensively a measure of your bragging right with regards to collaborations, endorsement and partnership with the biggest names in the industry. Many, including the media considers it as a stamp of validation and when it has a touch of America, it is even more enticing.
And while some may lose creative control in the process of getting snapped up by American investors, a few like Davido who was compelled to renegotiate his deal with Sony to acquire some leverage over his sound and style. He thereafter released IF which became a chart topper and have been covered by the likes of Kanye West.
According to Statista, the revenue from Nigerian music grew from $26 million in 2014 to $34 million in 2018, and by the threshold of 2023 the revenue is projected to hit $44 million
PwC in their latest report acknowledge that Nigeria will be the world’s fastest-growing Entertainment & Media market over the coming five years
Unfortunately, it appears most unlikely that the Nigerian government are taking cognisance of these moves, let alone gearing up to create an enabling environment as well as policies to galvanise these developments.
Meanwhile we earlier reported that Afrobeat superstar, Burna Boy’s recent album, Twice As Tall, has been announced as the most-streamed Nigerian album on the streaming platform, Spotify for the year 2020.
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