Royalty Payment Issues Hit Music Streaming Service Boomplay
Sony Music pulled its catalog from the African music streaming platform Boomplay on Monday (Dec. 9) due to ongoing delays in royalty payments, sources confirmed. This move follows reports from other music labels and distributors who also claim to be facing late payments.
A monthly payment report published by distributor Symphonic on Dec. 2 revealed that Boomplay payments are excluded from April 2023 to September 2024. The reasoning cited: “due to delays in receiving the statements and/or payments from these partners.” While a representative for Sony Music remained silent about the suspension, requests for comment from Boomplay went unanswered.
Boombplay Aims For African Music Dominance
Boomplay officially began in 2019 with grand aspirations. The platform secured $20 million in Series A funding, aiming to become the leading name in African music streaming. At the time, CEO Joe He declared: “We believe we can become the number one player in the whole music ecosystem for African music.” He envisioned serving the artist community in a way that differed from the established Western models.
The African music industry is not like in America or Europe where there is one big label who takes care of thousands of artists. At the moment there are a lot of musicians that work independently or with small labels, so it takes time to build a catalog said Phil Choi, Boomplay’s head of international acquisitions and partnerships asserted.
In 2018, Boomplay achieved its first milestone: a licensing agreement with Universal Music Group. Subsequent deals followed with Sony Music and Warner Music Group the following year. An agreement with indie label organization Merlin solidified Boomplay’s position within the global music landscape. Boomplay became even more integrated when its streams started to count towards Billboard charts in October 2021.<
### Growth and Challenges
CEO He projected that Boomplay could grow its user base in Africa to 350 million. By September 2023, the platform’s user base reached 98 million monthly active listeners.
While Boomplay was gaining traction, it wasn’t the only platform encountering royalty payment issues. In 2021, TIDAL faced a lawsuit, which uncovered $127 million in liabilities – the majority stemming from unpaid streaming fees to record labels. While TIDAL CEO Jesse Dorogusker assured Billboard the following year that the payment situation had been resolved as of the following year, it appears the issue of timely royalty payments continues to challenged streaming services globally.
Will this situation lead to African artists seeking out alternative platforms for distributing their music and earning revenue?
**Host:** Joining us today is music industry analyst, Sarah Johnson, to discuss the recent royalty payment issues plaguing African music streaming platform, Boomplay. Sarah, thanks for being here.
**Sarah:** Thanks for having me.
**Host:** Sony Music just pulled its entire catalog from Boomplay, citing ongoing delays in royalty payments. This follows similar complaints from other labels and distributors. Given boomplay’s ambitious goal of dominating the African music market, how damaging could this be for the platform’s future?
**Sarah:** It’s certainly a significant setback. Loss of content from a major label like Sony music could lead to subscriber churn and damage Boomplay’s reputation. It raises serious questions about their financial stability and their ability to manage payments effectively.
**Host:** Boomplay stated they were building a unique model for supporting African artists. Do you think this royalty dispute reflects larger challenges inherent in serving this market?
**Sarah:** It’s possible. The African music landscape is diverse and complex, with many autonomous artists and smaller labels. Establishing a fair and efficient royalty system across such a fragmented market can be incredibly challenging.
**Host:** We know TIDAL faced similar issues a couple years ago. Are royalty payment controversies becoming a systemic problem within the music streaming industry?
**Sarah:** It’s certainly a recurring issue. There’s an ongoing tension between streaming platforms aiming for profitability and ensuring timely and transparent payments to artists and labels.
**host:** What do you think this means for African artists who rely on platforms like Boomplay for income and exposure?
**Sarah**: it’s cause for concern. Delays in payments can seriously affect an artist’s livelihood. It highlights the need for greater transparency and accountability within the streaming industry.
**Host:** Boomplay has yet to publicly address these allegations.What should they do to regain trust and move forward?
**sarah:** Acknowledging the issue openly and outlining a concrete plan for resolving these payment delays is crucial. They need to demonstrate a commitment to fair and timely compensation for artists.
**Host:** Engaging insights, Sarah. Thank you for sharing your expertise with us.
**Sarah:** My pleasure.
**Host**: Now, we want to hear from you. Do you think Boomplay can recover from this scandal? Will this push African artists towards seeking alternative platforms ? Let us know your thoughts in the comments below.
