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 Spotify reports record royalties to Nigerian artists, signals industry growth

Spotify, the renowned global music streaming platform, has announced a significant milestone in its support of Nigerian artists, disclosing a staggering N25 billion paid out in royalties during the year 2023. Jocelyne Muhutu-Remy, Spotify’s Managing Director for Sub-Saharan Africa, unveiled these figures in a statement on Friday, underscoring a remarkable 2,500 per cent increase since 2017 and a doubling of payments from the previous year.

The revelation came as part of Spotify’s annual report, “Loud & Clear,” aimed at fostering transparency within the music industry. Muhutu-Remy emphasized the report’s role in shedding light on Spotify’s royalty payments and elucidating the dynamics of the global streaming economy.

Of particular note is the exponential growth in royalties earned by Nigerian artists, with the number of those earning over N10 million quadrupling since 2018. More than half of these royalties were directed to independent artists or labels, illustrating the democratizing influence of streaming platforms like Spotify.

In a testament to the increasing global appeal of Nigerian music, Spotify listeners discovered Nigerian artists nearly 950 million times in 2023, with Nigerian artists commanding over 80 per cent of tracks featured on the country’s daily top 50 chart. Additionally, over 1,400 Nigerian artists were added to Spotify’s editorial playlists during the same period.

Muhutu-Remy highlighted the transformative impact of streaming on Nigeria’s music landscape, noting a genre revolution beyond the dominance of Afrobeats. Local genres such as Highlife, Igbo Pop, and Fuji experienced substantial increases in listenership, with notable growth recorded in the first quarter of 2024 compared to the previous year.

Leading the charge in these genres are acclaimed artists like K1 De Ultimate in Fuji, Umu Obiligbo in Highlife, and Phyno in Igbo Pop. Notable tracks include Adewale Ayuba’s “Koloba Koloba,” Chief Osita Osadebe’s “Nwanem Ebezina,” and KCee’s “Ojapiano.”

Demographically, men dominate listenership of local genres, but Gen Z emerges as a significant audience segment across all three genres. Cities such as Lagos, Port Harcourt, and Katsina lead in streaming local music, with the top five exported music genres from Nigeria including Afrobeats, Nigerian Pop, Afropop, Nigerian Hip Hop, and Afro Rhymes and Blues.

Spotify’s substantial investment in African artists underscores its commitment to fostering sustainable careers in the music industry, promising continued support to fuel the momentum of Nigeria’s music revolution.

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