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Monday, November 4, 2013

Nigeria not among top 20 World Music Markets; Dbanj disagrees

The federation placed the United State
of America number one, with $4.17
billion (N661 billion) trade value –
49% each for physical and digital
market and a $13.4 (N2,100) per
person consumption. Japan was ranked
2nd, with $3.96 billion (N630
billion) market value with 73% for
physical market, and 25% for digital
market; Germany was 3rd, with $
1.41 billion (N224 billion) market
value, and a physical and digital
market value of 81% and 13%
Fourth was the United Kingdom, with a
market value of $1.38 billion (N219
billion); physical market, 67%; and
digital market, 25%. South Africa, at
18, was the only African country on
the list, with a trade value of $
125.6 million (N20 billion) and a
physical and digital market of 93%
and 5% respectively.
With the international success of many
Nigeria music stars this year- Iyanya,
Whizkid, Ice Prince, P Square, D'Banj-
some industry insiders were wont to
disagree with the ranking, while others,
enumerating the many challenges
plaguing the industry, said Nigeria not
being on the list was justified, and the
country would not be included in the
2013 list Too many issues A music
blogger and writer (HipHop World,
Popoff Central), Ayomide Tayo, said
Nigeria would not make the 2013
list, despite its huge population and
number of records released this year.
According to Tayo, Nigerian music
revenue could increase and the country
make the IFPL ranking if the music
industry put its house in order and
keyed into social media. "For Nigeria to
become one of the biggest music
markets we need to have a functioning
music industry. We need to get the
basics right.
The revenue that this so called industry
of ours is making has been cut short
by piracy, traditional media and the
internet. We need to aggressively battle
these monsters before we can start
making serious revenue in this
country," he said. He noted that the
inability of record labels to see beyond
making profit from performance fees,
and disregarding digital platforms as
avenues where they could promote
their artistes and sell records were
other limiting factors.
"The record labels in Nigeria have a
narrow mind-set. Taking a large chunk
of performance fees only gets you so
far. The bread and butter of music lie
in the sales of albums, EPs and
singles. "Digital platforms are new in
Nigeria. Record labels in Nigeria need
to have a working relationship with
these platforms. They need to stop
giving blogs the authority to post
download-links for songs.
Why should I buy a song from Spinlet
when I can get it on Pop Off Central?
"Labels in Nigeria have to agree that
songs sent to blogs should only be
streamed and not made available for
download. That way, they can make
money from digital platforms thereby
increasing revenue," he advised. He
also pointed out touring as another
source of revenue for labels and their
"Touring in Nigeria is non-existent. The
music industry in Nigeria has to invest
in this area heavily before it can think
of being one of the biggest music
industries in the world," Tayo said. An
entertainment lawyer, Demilade
Olaosun, agreed with Tayo's points on
the lack effective monetisation of the
Olaosun also advocated effective laws
by government that would protect
intellectual property (IP) rights, adding
that industry stakeholders could handle,
amongst themselves, piracy, internet
financial transaction system and an
effective royalty calculation system.
"Of course, there are so many things
to be dealt with; from piracy to
effective internet financial transactions
system, which would make purchase of
music through the right channels easy
and fast. "Also, there is a need for an
effective royalty calculation and
collection system, honesty and
professionalism amongst practitioners
regarding royalty delivery, effective
legislation protecting IP rights, increased
participation by corporate entities and
the government, increased knowledge
on monetisation of the end products on
multiple platforms for labels and
artistes, more attention to the business
aspect of the industry – and a host of
other issues," he said.
Reacting to a projection by industry
stakeholders that the Nigerian
entertainment industry would hit the $
1billion (N155 billion) mark by
2016, Olaosun declared that the
music industry would play a huge role
in making that possible. However,
unlike Tayo, Olaosun was of the
opinion that the music industry was
close to making IFPI top 20 list for
this year.
"I think we are definitely playing in the
top 20. I stand to be corrected
though," he said. For D'Banj, IFPI not
a definitive voice However, the failure
of the London based organisation to
reveal its parameters for ranking
countries had led some Nigerian music
industry stakeholders to question its
rankings. D'banj, a major player in the
music industry, was one of the major
According to him, the Nigerian music
market was far better than the South
African one. He told PREMIUM TIMES,
"Must you believe everything they
(IFPI) say about us? Were they in
Nigeria to check how much each artiste
or label grosses every year? "In an
unstructured structure where there is
no light, where 1+1 does not mean
2, where there is piracy, Nigerian
artistes are grossing millions yearly,
and you tell me we are not the biggest
music market in Africa? Even the
South Africans who you say are on
the list wish they were Nigerian artistes
He, however, conceded on the ranking
of the US as number one. "Why won't
US be number 1? When they (US)
have a solid distribution network, when
there is revenue from adverts and
endorsements." Perhaps, the greatest
obstacle to Nigerian music making such
rankings would be the availability of
data. There is hardly any data that
shows album sales in Nigeria.
Even at the digital level where data is
available, it does not translate to
money for either the artiste or label,
and by extension, the market revenue,
according to another entertainment
lawyer, Akinyemi Ayinoluwa. Ayinoluwa
also agreed with D'banj's call to
disregard the IFPI ranking, saying that
the organisation should release its full
parameters for ranking music markets,
as well as visit different countries to
know how music works there.
When PREMIUM TIMES contacted IFPI,
one of its representatives, Laura
Childs, explained, "The ranking is
based on the size of each recorded
music market in revenue terms, i.e.
the market with largest revenues (USA)
is in first place, and so on. We have
local affiliate groups across the world
who report their local sales data to
us." Childs, however, refused to
disclose IFPI's Nigerian affiliate.

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