Sony pulls its music from streaming service Boomplay
Boomplay, Africa’s “No. 1 music streaming and download platform” suffers as Sony pulls its music from the service.
Boomplay’s rise
Since its launch in 2015, Boomplay has positioned itself as the largest music streaming service in Africa, boasting over 98 million monthly active users by the end of 2023. Headquartered in Nigeria with offices in Ghana, Kenya, and Tanzania, the platform offers ad-supported and premium tiers.
This growth was bolstered in 2019 when Boomplay raised $20 million in a Series A funding round. The funds fuelled Boomplay’s expansion across Africa and enriched its catalog. By the same year, it had struck licensing deals with Sony Music, Warner Music Group, and Universal Music Group. Also focusing on independent, local genres like Afrobeat, Afropop, and Reggae, Boomplay secured a major foothold in the African streaming market.
The platform is owned by Transsnet Music, a joint venture between two China-based companies TRANSSION Holdings Group, and NetEase (owner of NeatEase Cloud Music).
Image credit: Kaizenify.
However, recent developments suggest Boomplay’s relationships with rightsholders may be strained.
Sony Music pull out
On December 9, Sony Music pulled its entire catalog from Boomplay as a result of late or unpaid royalty payments. This move means fans of major African artists like Davido, Wizkid, Tems, and Lojay can no longer access their music on the platform.
Boomplay’s royalty issues have been ongoing, with some reports suggesting payments to rightsholders have been delayed for two years, and some claiming a backlog on royalty payments to 2021. This mirrors challenges faced by other streaming platforms in the past, such as TIDAL, which faced lawsuits in 2021 over $127 million in unpaid streaming fees to record labels.
Boomplay’s challenges
Boomplay’s rise coincided with rapid growth in Sub-Saharan Africa’s music market, the fastest growing region in 2022 and 2023 according to the IFPI. However, economic conditions in Nigeria, its largest market, have created hurdles.
The country is experiencing its highest inflation in decades, reducing the spending power of its 200 million citizens. Boomplay’s focus on audiences outside urban cities made it a popular choice among low-income users, who are most likely to be affected by the economic downturn. Premium subscriptions have stagnated, and a wave of layoffs earlier this year hinted deeper financial strain.
Whether these are the reasons behind Boomplay’s inability to pay royalties, the company’s lack of transparency and accountability left Sony with no choice but to cut ties with the company. As Boomplay reportedly seeks additional funding, maybe the company can bounce back like TIDAL has done following its lawsuits.