AFRICAN MUSIC GENERATES $100 MILLION
Music revenues in South Africa have hit a remarkable high over the past year, fueled by the rapid rise of smartphones and the widespread adoption of streaming apps.
According to the International Federation of the Phonographic Industry’s (IFPI) latest Global Music Report, Sub-Saharan Africa’s music revenue surpassed $100 million (R1.84 billion) for the first time in 2024. This marks a 22.6% increase, with the region’s revenue reaching $110 million (R2.03 billion), making it the second fastest-growing region globally.
South Africa remains the undisputed leader in the region, contributing 74.6% of the total revenue—$82.06 million (R1.51 billion)—a 14.4% growth over 2023. This follows a solid 20% rise in 2023, and a 32% surge in 2020, illustrating the steady and impressive growth of the music sector.
A key driver behind this ongoing growth is the explosion of music streaming services, both locally and internationally. Globally, the IFPI reported a 4.8% increase in music revenues, with streaming accounting for 69% of total global music revenue. Subscription fees alone contributed 51.2%.
Angela Ndambuki, the IFPI’s Director for Sub-Saharan Africa, emphasized that the region’s digital music revenue, especially through subscription streaming, has experienced significant growth. “Technology is undeniably the engine behind this success. It’s crucial for the region to enhance national policies and regulations to continue attracting investment into the wider recorded music industry,” Ndambuki stated.
In South Africa, Spotify and YouTube Music are the leading platforms for music streaming. In 2023, Spotify reported a 101% surge in music playback time within the country. The royalties paid to South African artists by Spotify reached an impressive R256 million, more than three times higher than in 2019 and six times higher than in 2017. Furthermore, South African artists are gaining more visibility globally, with increased appearances on curated playlists, showcasing the expanding reach of local music in the international streaming ecosystem.
The rise of streaming has been bolstered by greater smartphone adoption, improved mobile network coverage, and plummeting data prices. Both Vodacom and MTN have extended 4G coverage to nearly 100% of the population, making streaming more accessible than ever. According to MyBroadband, video and music streaming have become major drivers of data traffic in South Africa, with the average mobile data usage on Vodacom’s smart devices growing from 966MB in 2019 to 3GB in 2024. MTN users have also seen their data usage more than double in the past five years, with postpaid data usage leading the charge.
While the government has advocated for further reductions in mobile data costs, the price of mobile data has already dropped significantly. Between 2019 and 2023, the cost of 1GB of mobile data in South Africa plummeted by 77%, from $7.77 to $1.81. Despite the rand’s devaluation against the dollar, this still represents a substantial 70% decrease over the past four years.
The turning point for this shift came with the country’s first radio frequency spectrum auction in 2022, which granted mobile networks the bandwidth needed to expand 4G and 5G coverage. This additional capacity has enabled telecom providers to meet the growing demand for data while lowering prices. A surge in mobile virtual network operators (MVNOs) has further spurred competition, offering consumers more affordable data options. Capitec Connect has already attracted over 1.3 million active subscribers in under three years, and Afrihost’s Air Mobile now offers smartphone bundles as low as R2.99 per GB.
This competitive landscape has empowered South Africans with more affordable mobile data, ultimately benefitting streaming services and, most importantly, local artists. The music industry in South Africa is thriving, and the future looks bright as digital streaming continues to reshape the musical landscape.
