The growing online platform for digital music distribution in the country is now being valued at $100 million, about N16.2 billion, according to analysts with Spinlet, with iRoking and iTunes dominating the market.
Digital distribution outfits have sprung up in the last six years, making it possible for the spread of local music online and for investors to tap into an estimated $10 billion digital market globally“Investors in digital music distribution are seeing huge potential for profits,” says an analyst.The internet has become an important element of modern economic infrastructure recently, fundamentally changing how people interact, how consumers shop, and how products and services are designed, developed, marketed, and delivered. The internet has also changed how businesses operate and interact with one another.The increase in digital trade, which has had significant impact on the United States and global economies, is offering Nigerian artistes and their music to be heard in different parts of the world. Thus, bringing about increase in revenue for artistes.In 2012 alone, according to the United States International Trade Commission, digital music contributed $4.1 billion to the US economy.In one of the highest-profile moves so far, Universal Music Group and Samsung Electronics announced in August the creation of The Kleek, a pan-African digital music service, which features music from Universal’s international catalogue and from local artistes like the Power Boyz in Angola, DJ Vetkuk in South Africa, and W4 in Nigeria.Mark Redgaurd, marketing manager, Spinlet, says digital music is a major paradigm shift happening globally. Music is moving from physical purchases to digital downloads and streaming, and Nigeria is definitely part of this. According to him, market for online music has been very positive.“We see tremendous amounts of potential in Nigeria and across Africa. The market is very nascent. As such, the market value can vary with little degree of accuracy. I don’t think anyone knows its true potential. Digital distribution has certainly made an impact and will continue to do so for the long term,” he says.Digital music distribution has continued to spread its tentacles across the continent. In December last year, South Africans were given access to the iTunes digital music store from Apple. Around the same time, one of the leading internet streaming music services, Deezer, a French company, expanded across much of Africa.