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More record labels are walking away from Boomplay.
Issues over non remitance of royalties have led Sony Music, Orchard, and Awal to pull their catalogues off music streaming platform Boomplay.
Boomplay is one of the most popular music streaming platforms in Nigeria who made in roads in digital music consumption when it expanded its business to Africa in 2015.
Since then, the company has expanded its reach and grow its active monthly users to a whooping 95 million as it became a crucial platform for both premium and freemium music consumption.
According to reports by TurnTable Charts, Boomplay has failed to pay royalties for two years with some company claiming the platform owed then a backlog of payment that dates back to 2021.
Global music companies Sony Music, Orchard, and Awal are the latest stakeholders to take their catalogue off Boomplay after ceasing distribution of new releases on the platform.
Songs and projects from Davido, Wizkid, Tems, and Lojay are among the catalogue yanked off Boomplay that up till now remains a favoured streaming platforms among low income earners.
Economic Downturn
Nigeria is witnessing its highest inflation rate in decades which has grossly reduced the spending power of its over 200 million citizens. Boomplay whose business model focused on attracting customers outside the urban cities has been greatly impacted by Nigeria’s 33% inflation rate which significantly affected its premium subscribers.
This inability to retain paying users and attract new ones led to a series of layoffs as the company attempted to manage the situation.
Lack of Transparency
The inability to remit royalties and what these labels describe as a lack of transparency and accountability has left them with no choice but to cut ties with Boomplay.
Speaking on the issues of getting royalties from the platform, Music Executive Igbokwe Amaechi said that labels who wanted to collect their royalties from Boomplay were being forced to show up at their office to demand it due to a lack of transparency.
Music companies prioritise getting revenue from all possible channels and this accounted for the issues between Universal Music and TikTok. Boomplay’s inability to account for royalties is a cardinal sin in the music business.
Impact on the Industry
The move by major labels to remove their catalogues from Boomplay is indicative of the economic challenges persisting in Nigeria, whose music industry is still trying to find its footing. It dents the hopes of attracting foreign direct investment into the ecosystem that’s still struggling to consolidate Afrobeats’ global gains.
This situation calls for concern and actions by stakeholders who should engage the private sector and government in addressing the issues that continue to stop Nigeria from harnessing its huge population and growing its music consumption base.
