Spotify royalty payments in Africa: A growing market

Spotify, the global audio streaming giant, has significantly increased its royalty payments to artists in Africa, reflecting a surge in interest in the continent’s music.

Tyla YouTube video
Tyla YouTube video

Nigeria and South Africa, the two biggest markets for Spotify in Africa, have particularly benefited from this growth. In 2024, Spotify paid approximately $59 million in royalties to artists from these two nations, demonstrating the rising commercial viability of African music on the platform, Reuters news report said.

Global and African Context

In 2024, Spotify disbursed a total of $10 billion in royalties worldwide. While Africa constitutes a relatively small share of the global streaming landscape, its influence is growing rapidly. Internationally recognized artists such as Nigeria’s Burna Boy and South Africa’s Tyla have helped elevate African music to a global audience.

The growing prominence of African music is also evident in user engagement. Currently, around 250 million user-created playlists feature at least one Nigerian artist, while 220 million playlists contain a South African artist. This demonstrates the increasing integration of African music into the global streaming ecosystem.

Nigeria’s Royalty Growth

Nigerian artists experienced a substantial increase in royalties, receiving over 58 billion Nigerian naira (approximately $38 million) in 2024. This represents more than a twofold increase compared to 2023. Additionally, the number of Nigerian artists earning at least 10 million naira annually has doubled year-on-year and tripled since 2022.

One of the key drivers of this growth has been the expansion of Nigerian music exports. Over the past three years, the export growth rate of Nigerian artists has risen by 49 percent, indicating strong demand for Nigerian music beyond its domestic market. This trend is supported by the global success of Afrobeat and other Nigerian music genres.

South Africa’s Royalty Increase

South African artists also saw a notable rise in earnings, with royalties reaching 400 million rand ($21 million) in 2024, marking a 54 percent year-on-year increase. Like Nigeria, much of this revenue originated from international markets. South African artists witnessed a 104 percent increase in export growth over the past three years, illustrating the growing demand for South African music worldwide.

In terms of earnings distribution, the number of South African artists earning between 100,000 and 500,000 rand annually has doubled in the past three years. This reflects a more sustainable income model for emerging and mid-tier artists, aligning with Spotify’s objective of enabling more musicians to earn a living through streaming.

Spotify earlier said its MAU grew by 35 million to 675 million at the end of December 2024. Spotify has added 11 million subscribers finishing at 263 million. Spotify’s revenue was €4.2 billion and grew 17 percent.

In Q1 2025, Spotify is forecasting 678 million MAU, an increase of 3 million from Q4, and 265 million subscribers, an increase of 2 million over Q4. Spotify is also forecasting €4.2 billion in revenue for Q1 2025.

Implications and Future Outlook

Spotify’s growing financial commitment to African artists highlights the platform’s role in promoting African music on a global scale. The increase in royalty payments suggests a promising future for artists from Nigeria, South Africa, and other emerging markets in Africa.

The streaming economy continues to reshape how African artists monetize their music. With increasing playlist placements, rising exports, and a larger number of mid-tier artists generating significant revenue, the African music industry is poised for sustained growth.

Baburajan Kizhakedath

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