Nigeria Not Among World’s Top 20 Music Markets; D’banj Disagrees
Despite
the musical triumphs of her several top artistes, 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.
Source: Premium Times