Nigeria has failed to make it into the world's top 20
biggest music markets for 2012, the latest ranking by the
International Federation of the Phonographic Industry,
IFPI, claims.
The federation placed the United State of America number
one, with $4.17 billion (N661 billion) trade value – 49% each
for physical and digital market and a $13.4 (N2,100) per
person consumption. Japan was ranked 2nd, with $3.96 billion
(N630 billion) market value with 73% for physical market,
and 25% for digital market; Germany was 3rd, with $1.41
billion (N224 billion) market value, and a physical and digital
market value of 81% and 13% respectively.
Fourth was the United Kingdom, with a market value of $1.38
billion (N219 billion); physical market, 67%; and digital
market, 25%. South Africa, at 18, was the only African
country on the list, with a trade value of $125.6 million (N20
billion) and a physical and digital market of 93% and 5%
respectively.
With the international success of many Nigeria music stars
this year- Iyanya, Whizkid, Ice Prince, P Square, D'Banj-
some industry insiders were wont to disagree with the
ranking, while others, enumerating the many challenges
plaguing the industry, said Nigeria not being on the list was
justified, and the country would not be included in the 2013
list Too many issues A music blogger and writer (HipHop
World, Popoff Central), Ayomide Tayo, said Nigeria would
not make the 2013 list, despite its huge population and
number of records released this year.
According to Tayo, Nigerian music revenue could increase
and the country make the IFPL ranking if the music industry
put its house in order and keyed into social media. "For
Nigeria to become one of the biggest music markets we need
to have a functioning music industry. We need to get the
basics right.
The revenue that this so called industry of ours is making has
been cut short by piracy, traditional media and the internet.
We need to aggressively battle these monsters before we can
start making serious revenue in this country," he said. He
noted that the inability of record labels to see beyond making
profit from performance fees, and disregarding digital
platforms as avenues where they could promote their artistes
and sell records were other limiting factors.
"The record labels in Nigeria have a narrow mind-set. Taking
a large chunk of performance fees only gets you so far. The
bread and butter of music lie in the sales of albums, EPs and
singles. "Digital platforms are new in Nigeria. Record labels
in Nigeria need to have a working relationship with these
platforms. They need to stop giving blogs the authority to post
download-links for songs.
Why should I buy a song from Spinlet when I can get it on
Pop Off Central? "Labels in Nigeria have to agree that songs
sent to blogs should only be streamed and not made available
for download. That way, they can make money from digital
platforms thereby increasing revenue," he advised. He also
pointed out touring as another source of revenue for labels and
their artistes.
"Touring in Nigeria is non-existent. The music industry in
Nigeria has to invest in this area heavily before it can think of
being one of the biggest music industries in the world," Tayo
said. An entertainment lawyer, Demilade Olaosun, agreed
with Tayo's points on the lack effective monetisation of the
industry.
Olaosun also advocated effective laws by government that
would protect intellectual property (IP) rights, adding that
industry stakeholders could handle, amongst themselves,
piracy, internet financial transaction system and an effective
royalty calculation system.
"Of course, there are so many things to be dealt with; from
piracy to effective internet financial transactions system,
which would make purchase of music through the right
channels easy and fast. "Also, there is a need for an effective
royalty calculation and collection system, honesty and
professionalism amongst practitioners regarding royalty
delivery, effective legislation protecting IP rights, increased
participation by corporate entities and the government,
increased knowledge on monetisation of the end products on
multiple platforms for labels and artistes, more attention to the
business aspect of the industry – and a host of other issues,"
he said.
Reacting to a projection by industry stakeholders that the
Nigerian entertainment industry would hit the $1billion (N155
billion) mark by 2016, Olaosun declared that the music
industry would play a huge role in making that possible.
However, unlike Tayo, Olaosun was of the opinion that the
music industry was close to making IFPI top 20 list for this
year.
"I think we are definitely playing in the top 20. I stand to be
corrected though," he said. For D'Banj, IFPI not a definitive
voice However, the failure of the London based organisation
to reveal its parameters for ranking countries had led some
Nigerian music industry stakeholders to question its rankings.
D'banj, a major player in the music industry, was one of the
major skeptics.
According to him, the Nigerian music market was far better
than the South African one. He told PREMIUM TIMES,
"Must you believe everything they (IFPI) say about us? Were
they in Nigeria to check how much each artiste or label
grosses every year? "In an unstructured structure where there
is no light, where 1+1 does not mean 2, where there is piracy,
Nigerian artistes are grossing millions yearly, and you tell me
we are not the biggest music market in Africa? Even the
South Africans who you say are on the list wish they were
Nigerian artistes now."
He, however, conceded on the ranking of the US as number
one. "Why won't US be number 1? When they (US) have a
solid distribution network, when there is revenue from adverts
and endorsements." Perhaps, the greatest obstacle to Nigerian
music making such rankings would be the availability of data.
There is hardly any data that shows album sales in Nigeria.
Even at the digital level where data is available, it does not
translate to money for either the artiste or label, and by
extension, the market revenue, according to another
entertainment lawyer, Akinyemi Ayinoluwa. Ayinoluwa also
agreed with D'banj's call to disregard the IFPI ranking,
saying that the organisation should release its full parameters
for ranking music markets, as well as visit different countries
to know how music works there.
When PREMIUM TIMES contacted IFPI, one of its
representatives, Laura Childs, explained, "The ranking is
based on the size of each recorded music market in revenue
terms, i.e. the market with largest revenues (USA) is in first
place, and so on. We have local affiliate groups across the
world who report their local sales data to us." Childs,
however, refused to disclose IFPI's Nigerian affiliate.
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