Report Coverage
This report focuses on the music industry and includes the publishing of records and other recorded audio media, the reproduction/recording of records, audio, video and CDs from master copies and the retail of music. There are profiles of 24 companies including major multinational companies such as Universal, Sony and Warner, and local companies such as Arena, which houses Gallo Music, music publishers such as Dojam and Red Igloo and vinyl record sellers such as My Vinyl.
Introduction
This report focuses on the music industry and includes the publishing of records and other recorded audio media, the reproduction/recording of records, audio, video and CDs from master copies and the retail of music. South Africa’s music industry is dominated by international music companies, Universal Music Publishing Group and Sony/ATV Music Publishing, that are also the global industry leaders. Although South Africa’s music revenue (which includes all channels such as physical, digital, live events and podcasts) has been increasing steadily annually, 80% of music sold and consumed locally is international and 20% is local. Music revenue in 2018, the latest information available, was R2.4bn compared to R2.2bn in 2016 and it has not been confirmed if the 2019 forecast of R2.6bn was met. Revenue from physical format sales such as CDs and records has been declining in South Africa as streaming has increased.
Strengths
• Demand for South African jazz music.
• Music can be created at low cost.
• South African artists are talented, and some have an international following.
Weaknesses
• Dominated by multinational companies.
• Musicians are not covered by the Unemployment Insurance Fund.
• No local vinyl pressing plant which makes vinyl records expensive.
• Price of imported products such CDs and records are affected by the exchange rate.
• There is a long wait for revenue that each artist earns from airplay.
Opportunities
• Growth in streaming as internet connectivity improves and data prices reduce.
• Roll out of 5G technology.
Threats
• Competition from international artists.
• Constrained consumer spending driven by worsening economic situation.
• Increased copyright infringement, and piracy.
• Uncertainty of duration of coronavirus pandemic.
• Unreliable power supply.
Outlook
Although South Africa’s music industry has been growing steadily, it continues to reap only a small percentage of recorded music revenue. Musicians remain exploited by television and radio stations that delay royalty payments as there are no regulations to protect them in this regard. According to PwC, “streaming’s popularity is set to bolster recorded music revenue in the market as the rising take-up of streaming music subscriptions will more than offset the ongoing decline in physical recorded music sales going forward.” However, the impact of coronavirus is expected to affect industry revenues in 2020 as the economy contracts further and unemployment increases. Concerts and live events have been postponed indefinitely or in many cases cancelled and many artists have had to delay releasing new material due to being unable to use tours to promote their albums.
The Music Industry in South Africa
2020
Full Report
R 1 900.00(ZAR) estimated $105.90 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 74.13 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Value Chain | 8 |
| 2.2. | Geographic Position | 9 |
| 3. | SIZE OF THE INDUSTRY | 9 |
| 4. | STATE OF THE INDUSTRY | 13 |
| 4.1. | Local | 13 |
| 4.1.1. | Corporate Actions | 18 |
| 4.1.2. | Regulations | 18 |
| 4.1.3. | Enterprise Development and Socio-Economic Development | 19 |
| 4.2. | Continental | 20 |
| 4.3. | International | 23 |
| 5. | INFLUENCING FACTORS | 25 |
| 5.1. | Economic Environment | 25 |
| 5.2. | Coronavirus | 25 |
| 5.3. | Piracy | 26 |
| 5.4. | Royalty Dispute with SABC | 27 |
| 5.5. | Technology, Research and Development (R&D) and Innovation | 28 |
| 5.6. | Labour | 30 |
| 5.7. | Effects of Load Shedding | 31 |
| 6. | COMPETITION | 31 |
| 6.1. | Barriers to Entry | 33 |
| 7. | SWOT ANALYSIS | 33 |
| 8. | OUTLOOK | 33 |
| 9. | INDUSTRY ASSOCIATIONS | 34 |
| 10. | REFERENCES | 35 |
| 10.1. | Publications | 35 |
| 10.2. | Websites | 35 |
| APPENDIX 1- SUMMARY OF NOTABLE PLAYERS | 36 | |
| Reproduction of Recorded Media & Music Publishing | 36 | |
| Music Retail | 38 | |
| COMPANY PROFILES - REPRODUCTION OF RECORDED MEDIA & MUSIC PUBLISHING | 40 | |
| ARENA HOLDINGS (PTY) LTD | 40 | |
| CONTENT CONNECT AFRICA (PTY) LTD | 43 | |
| DAVID GRESHAM RECORD COMPANY (PTY) LTD (THE) | 44 | |
| DOJAM PRODUCTIONS CC | 46 | |
| ELECTROMODE (PTY) LTD | 47 | |
| KVN PUBLISHING (PTY) LTD | 49 | |
| RED IGLOO MUSIC PUBLISHING CC | 51 | |
| SHEER PUBLISHING (PTY) LTD | 52 | |
| SM PUBLISHING SOUTH AFRICA (PTY) LTD | 53 | |
| SONY MUSIC ENTERTAINMENT AFRICA (PTY) LTD | 55 | |
| UNIVERSAL MUSIC (PTY) LTD | 57 | |
| UNIVERSAL MUSIC PUBLISHING (PTY) LTD | 58 | |
| WARNER MUSIC SOUTH AFRICA (PTY) LTD | 60 | |
| COMPANY PROFILES - REPRODUCTION OF RECORDED MEDIA & MUSIC PUBLISHING | 61 | |
| CONNOISSEUR ELECTRONICS (PTY) LTD | 61 | |
| GROUP 187 HOLDINGS C C | 63 | |
| K MORBY | 64 | |
| LOOT ONLINE (PTY) LTD | 65 | |
| MASSMART HOLDINGS LTD | 67 | |
| MEDIA24 (PTY) LTD | 73 | |
| MR VINYL (PTY) LTD | 80 | |
| NEW CLICKS SOUTH AFRICA (PTY) LTD | 81 | |
| PICK N PAY STORES LTD | 84 | |
| SPOILER TAGS (PTY) LTD | 88 | |
| TAKEALOT ONLINE (RF) (PTY) LTD | 89 |
