Photo Credit: Mdundo
Now with about 36 million monthly active users to its credit, African streaming service Mdundo says it’s on track to pay out north of $1 million in royalties during 2025.
Nairobi-headquartered Mdundo disclosed that artist-compensation forecast in a brief release. We last checked in on the platform in February, when higher-ups were touting a monthly-user milestone of over 30 million.
Against the backdrop of an industry-wide focus on increasingly lucrative emerging markets, the figure has evidently achieved double-digit growth in the interim. The user (and subscriber) expansion is also driving revenue at Mdundo, which, factoring at the present DKK-USD exchange rate, reported generating $295,827 in 2021, $1.04 million in 2022, and $1.92 million in 2023.
Running with the point, Mdundo, which has paid out royalties to 156,000 professionals and counting, intends to make between $1.1 million and $1.3 million in artist payments next year. Of course, this sum is modest in the context of the broader industry, where a growing portion of paydays are being measured in the tens and hundreds of millions of dollars.
But it goes without saying that the compensation is important to the involved acts – not to mention the even greater long-term significance of having more ways to reach fans and earn a living. All told, Mdundo operates in Kenya, Tanzania, Uganda, Nigeria, Ghana, Zambia, Zimbabwe, Mozambique, Angola, and Rwanda.
Despite the relatively long list, though, the company is zeroing in on “hyperlocal markets to enhance the reach and impact of both its artists and advertisers.” This includes Hausa media in Nigeria as well as Kalenjin and Kamba music in Kenya and parts of Uganda, the service noted.
The emphasis on hyperlocal sub-markets fuels Mdundo’s appeal to nearby audiences, boosts the visibility of artists specializing in the genres, and attracts advertisers in the process, per the company.
“Our commitment is to deliver consistent and meaningful earnings, helping individual artists grow while fostering the broader development of Africa’s music industry,” added Mdundo CEO Martin Nielsen, whose business’s stock (CPH: MDUNDO) experienced a 5.8% valuation spike during today’s trading.
We’ll have additional insight into Mdundo’s positioning soon; the company has teed up the release of its next annual report for October 7th. Furthermore, other regional players – besides leading global streaming platforms and companies – are likewise making moves in Africa. In July, for instance, Boomplay inked a YG Entertainment distribution pact.
