Revenue from music streaming in South Africa has increased by 334.2% over the past year, IFPI said in its latest report.
Total South African streaming revenues increased from $1,877,000 (±R25 million) in 2015 to $8,150,000 (±R107 million) in 2016, IFPI told MyBroadband.
This includes revenues from subscription and ad-supported streaming services, as well as video streams.
“In South Africa, although the physical market remains important, there are already over 250,000 paying subscribers on streaming services and we expect the market to grow,” said Sipho Dlamini, the managing director of Universal Music South Africa and Sub-Saharan Africa.
Biggest streaming music service in South Africa
Apple Music is the largest streaming service in South Africa, said the MD of Warner Music South Africa, Tracy Fraser. Google Play and Deezer are also leading players, she said.
According to Fraser, there is still a lot of room for growth in digital music as smartphone penetration increases in South Africa.
“Streaming is becoming very big for us, but it’s still in its infancy,” said Fraser.
“Digital growth is helping enable us to expand our roster, signing artists such as ASH, Dr Bone, Josh Kempen, and Locnville, who reflect the diversity of the music scene in South Africa today.”