The Music In Africa Foundation (MIAF) has announced the release of the Revenue Streams for Music Creators in South Africa 2022 report.
The report is the first of its kind in the country and is based on nationwide research conducted by the MIAF in 2021 to identify the revenue streams that are viable for musicians in the South African music industry. It spans all nine provinces of South Africa and is based on information supplied by some 3 000 musicians plying their trade in different genres, communities, and geographical and social settings.
The study forms part of the broader Revenue Streams for African Musicians (RSFAM) project – a multifaceted initiative aiming to empower African music professionals with the information and tools to earn more income from their works. RSFAM subprojects, apart from the nationwide report, include capacity-building workshops for musicians across South Africa, an extensive content offering with helpful educational guides assisting music professionals to earning more money, and new digital tools envisioned to advance their careers.
The report is published on the Music In Africa portal, where music creators can now access a wide range of educational content about the identified music revenue streams.
Report highlights
A critical aspect of the research is the focus on the informal music industry, which is often neglected in similar studies. The study, which takes into consideration pre- and post-Covid-19 earning trends, identified five main music revenue categories that are relevant in South Africa – namely music rights revenue, live performance revenue, services revenue, brand-related revenue and grants and funding revenue. These categories are further subdivided into 47 earning streams that function holistically to create the broader financial ecosystem for music creators in South Africa.
Highlights of the report include a comprehensive list of revenue opportunities for music creators in South Africa, and the average earnable amounts in the different revenue streams, genres and locations. The report also shows useful statistics on the efforts (time and money) musicians need to invest to earn a profit, as well as the key marketing channels that are worthwhile for them.
The report identifies the most profitable revenue streams and includes important statistics on newer models such as NFTs, crowdfunding and webcasting. In addition, it shows the areas where music creators require support, as well as the learning priorities they deem central in shaping successful careers.
“The Revenue Streams for Music Creators in South Africa 2022 comes at an opportune time for the local industry,” MIAF director Eddie Hatitye, who also serves on the Foundation’s Music Policy Committee, said. “African music creators are in dire need of solutions and reliable information about how their industry functions and the opportunities they can tap into. Now that the COVID-19 crisis is beginning to simmer down, this report, and the RSFAM project as a whole, could ignite a new way of thinking about what works and what needs work in an industry with incredible potential.”
Q&A with Eddie Hatitye
What is the current state of music publishing in South Africa?
South Africa has a thriving publishing industry, easily the strongest on the continent. We account for more than half of the music rights revenues collected across the continent. That is something to be proud of. However, its nowhere near perfect. The industry being largely informal, a lot of musicians lack the knowledge and skills to register and publish their works. This means a lot of them are missing out on significant revenues.
Do we see a shift in how the music industry is changing as Covid-19 simmers down?
Absolutely. I’d say the industry is almost back to normal. But as the live music industry comes back to life, we also see digital platforms becoming even more influential than ever before. This comes with new challenges and opportunities.
What are the biggest lessons that can be learnt from the Covid-9 pandemic?
For creators, it’s very risky to rely on one revenue stream only. It is supremely important for musicians to treat their craft as a business, and diversify their income streams.
What are some of the key findings in the Revenue Streams for Music Creators in South Africa 2022 report?
There are so many useful takeaways. A highlight for me is that we were able identify 47 key revenue streams that any music creator in South Africa can explore. We present these earning opportunities with pragmatic information such as the average earnable amounts in the different revenue streams, genres and locations. The report also shows useful statistics on the efforts (time and money) musicians need to invest to earn a profit, as well as the key marketing channels that are worthwhile for them. It is also interesting to see in the report that South African creators are embracing newer revenue streams such as NFTs, crowdfunding and webcasting.
What is the most profitable revenue streams being used in SA? And why do you think this is it?
The study found out that there are five broad revenue categories for music creators in South Africa, namely Music Rights revenue, Performance revenue, Services revenue, Brand-related revenue and Grants and Funding revenue. As you will see in the report, these categories are further subdivided into 47 earning streams that function holistically to create the broader financial ecosystem for music creators in South Africa. Despite the COVID-19 pandemic, live performance emerges as the strongest revenue category, followed by Services revenue, which is a broad category encapsulating the many services that music creators can offer such as teaching, acting, voice-over services, equipment higher etc. The third strongest stream was Music rights revenue, which is largely made up of royalties collected through performances, broadcasting, publishing, record labels, etc. Grants and funding revenue comes next and is followed by brand-related revenue. It is very important, however, to look closely into the report for in-depth statistics, contexts and tips that will help you understand which revenue streams could work for you.
When it comes to music publishing in South Africa, the are so many blurred lines. What process should musicians be following? And what should they be avoiding?
Yes. Unfortunately this is a global phenomenon. Even some of the big players in this industry don’t fully understand music publishing. Musicians should really begin to treat music as a business. This means making efforts to self-educate, to understand the basics of music rights and royalties, registering with all the collection societies, and making sure that all their works are notified to the CMOs. The internet has a lot of information on these processes. We have lot of this information on our website, www.musiciafrica.net.
As we move forward, what needs to change in the industry?
More education and training for music creators, funding as well as improvements in terms of creators’ access to markets (existing and new). We also hope to see more collaborations among royalty administrators with a view to simplify music rights management and administration processes in South Africa. Legislation and enforcement is also critical and I hope government will be more proactive in this area going forward.
