Mdundo, an Africa-focused music streaming service, is banking on extra partnerships with telcos throughout the continent to develop its earnings and consumer base. Final 12 months, the corporate signed offers with MTN and Airtel in Nigeria, and Vodacom in Tanzania, which look like paying off after its user-base nearly doubled because it added paying subscribers as a income.
MTN and Airtel Nigeria have a mixed customer-base of 124.5 million, whereas Vodacom Tanzania has 15.6 million subscribers, giving Mdundo entry to an enormous target market.
“It is a new income stream for us. Once we listed the corporate in September 2020 we predicted that income from this income stream will account for 40% of income inside a number of years and that is nonetheless our forecast,” mentioned founder Martin Nielsen.
Mdundo customers entry music by USSD companies on a bundled program (each day, weekly or month-to-month). The streaming service can be accessible by its web site or app which has over 1 million downloads.
By December 2021, Mdundo had 1.7 million worldwide songs on its platform and 367,000 tracks uploaded by 122,000 African musicians, a 46 proportion level development from December 2020. The corporate pays greater than 50% of its earnings to music creators.
The Kenya-based enterprise was based in 2013 and listed within the Nasdaq First North Progress Market –- a Nasdaq Nordic division — in September 2020 to fast-track its development throughout Africa. It has grown from a consumer base of lower than a million in 2016 to 13.8 million by the shut of 2021. It’s planning to develop its consumer base previous 18 million by mid this 12 months.
Paying subscribers accounted for 14% of Mdundo’s earnings in 2021, Nielsen mentioned, as promoting income, from its free streaming service, grew by 63% after establishing gross sales groups in Nigeria and Tanzania to quickly develop its industrial operations past Kenya.
“We’re quickly rising our industrial operation outdoors our home-market, Kenya. This enables us to be nearer to promoting shoppers throughout the continent and, thereby, create consciousness and educate round our distinctive promoting codecs and attain,” he mentioned.
The corporate can be doubling down its industrial focus to Ghana and Uganda, and expects better income development this 12 months following a brand new commercial deal that noticed it quadruple its month-to-month income from displayed commercials to DKK225,000 ($34,581).
Its total earnings can be rising, doubling within the second half of 2021 to DKK 2.5m ( $382,900) when in comparison with an identical interval the earlier 12 months. Total, it’s projecting a 400% development in income in its subsequent full monetary 12 months.
“The income development is a results of scaling our gross sales operation to new markets,” mentioned Nielsen.
Throughout Africa there are over 20 music streaming companies, together with Sweden’s Spotify, which is in 44 international locations after increasing to an extra 38 international locations within the continent final 12 months. Nigeria-headquartered Boomplay and Songa by Kenya’s telco Safaricom are different common streaming merchandise.
Nielsen, nonetheless, just isn’t apprehensive about competitors from new market entrants, noting that he’s extra disturbed by the prevalence of music piracy in Africa than the rest. In 2020 it partnered with anti-piracy specialists Audiolock to take away infringing hyperlinks for African music from unlicensed web sites.
“We nonetheless see the largest competitors to our service as unlawful consumption of music throughout the continent. That is nonetheless the place the overwhelming majority of individuals throughout Africa get their music from, sadly, and we purpose to offer an awesome different to this.”