The two biggest mobile telecommunication operators in the country, MTN Nigeria and Globacom, generated over N9bn for the local music industry in 2014 through the monetisation of caller tunes.
While MTN generated over N5bn for the Nigerian musical artistes who sell their contents as caller tunes on its platform, Globacom is said to have brought in about N4bn.
The money generated for the industry was in form of royalties paid to music artistes who served or are still serving as brand ambassadors to the two telecoms companies in the year.
The Glo music ambassadors, whose contracts were recently renewed, are Nigeria’s leading music stars, Peter and Paul Okoye (PSquare), Oladapo Oyebanjo (D’Banj), Chinedu Okoli (Flavour), Jude Abaga (M. I.), Oluwatobi Ojosipe (Wande Coal), Omawumi Megbele, Bez Idakula, Burna Ogulu (Burna Boy), Ego Ogbaro and Sammie Okposo.
Globacom also signed on hip hop sensation, Ayodeji Balogun, popularly known as Wizkid, after he terminated his contract with MTN. It also signed on the Mavin crew of Koredo Bello, Reekado Banks and Hadizah Blell (Di’ja).
However, the leader of the Mavin Group, Michael Ajereh (Don Jazzy) leads other music artistes on the MTN network. He is joined by Tiwa Savage, Sidney Esiri (Dr. Sid), Olanrewaju Fasasi (Sound Sultan), Iyanya Mbuk, Chidinma Ekile, Bankole Williams (Banky W), Kingsley Okonkwo (KCee) and David Adeleke (Davido).
MTN also recently signed on the visually impaired music artiste and producer, Cobhams Asuquo.
Our correspondent obtained the figures from the telecommunications companies on Wednesday, amid plans to announce an on-demand music service.
An employee in the Corporate Affairs Division of Globacom, who pleaded anonymity, said that apart from paying “about N4bn in form of royalties to Glo music ambassadors, Glo plans to lead the music streaming business in the future, which valuation is estimated to be about $8.5bn (N1.7tn).”
He said Globacom’s interest in the music streaming business might be due to the decline in digital download business, adding, “The streaming business is projected to grow at almost 40 per cent annually and will probably be over $2bn (N393bn) business in 2016.”
It was gathered that the new and rising stream of revenue for the telecoms firms might have accounted for the recent scramble for top music artistes in the country by both Globacom and MTN.
While MTN declined to renew the contracts of some of its music brand ambassadors last month, Globacom quickly poached them with higher bids.
Credit:Punch
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