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music industry south africa

The Music Industry in South Africa 2020

Yasmin Mahomedy | South Africa | 22 September 2020

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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.

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The Music Industry in South Africa
The Music Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $105.19 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.63 (USD)*

Table of Contents

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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