Asked their best music streaming platform, 42.7% of our focus group selected Google Play; 33.3% selected Apple Music; 16% selected Deezer, while 8.3% chose Spotify. Asked if they would consider subscribing to Spotify, 58% said they wouldn’t while 48% said ‘yes’. For those who would subscribe to the platforms, the customers focused on three different factors: the music playlists, the interface and the podcast library.
Though the brand launched in Nigeria last month, almost half of our consumer panel claim that they are aware of the product and have formed strong opinions about their choices.
“For music streaming in Nigeria, Google Music, Boomplay, Apple Music, Deezer would probably top of many consumers’ list”, said an expert. “But avid content consumers are willing to explore different choices, especially when certain brands have distinguished themselves. No consumer wants to use just one streaming platform when there are more to enjoy, even if they do not want to pay for it. As long as music apps can also offer free access to content, consumers can test, compare and pick their favourites. But you can hardly find those who subscribe to more than two music streaming platforms – maybe one for its music & sound quality and the other for the podcast”.
“There is serious competition in streaming now, and that benefits Nigerians that are willing to pay for it”, said another expert who leads a technology company. “For every Apple Music, YouTube Music, Spotify or Deezer, there are those also trying to raise their heads above water – Spinlet, Orin, Playfre. Or maybe needs to invest in brand marketing, for example, AudioMack, MTN Music+. More music streaming platforms are entering the Nigerian market with better payment methods and cheaper pricing, so many big players will undoubtedly slash their prices”.
Most countries affected by COVID-19 declared lockdowns to contain the virus’s spread, which massively increased users live streaming via Netflix, YouTube and Instagram. According to Tencent Music Entertainment, the revenue from online music subscriptions increased by 70.0% in Q’1 2020. Additionally, the number of online music paying users touched 42.7 million, a year-over-year rise of nearly 50%. Moreover, the growing popularity of live streaming and local content availability on online platforms propels market growth.
“There is serious poverty in the country, but the content market has never had a better moment,” our expert said. “Africa’s music streaming revenue is expected to hit a 12% annual growth that will see the market reach a volume of $822 million by 2024. Spotify alone offers more than 35 million songs and has one of the best algorithms for music curation and social interaction among the streaming apps. More Nigerians, specifically the younger audience, are becoming more aware of the brand, which is a significant reason they go through the cumbersome task of getting a VPN. Still, it is not coming here to dominate – at least, not yet. Tecno, Itel and Infinix have a robust presence in the Nigerian market. With Transsion (Chinese mobile phone manufacturer) pre-installing Boomplay into phones in the country, it’s going to make a serious dent on opportunities for Spotify”.