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Article / Entertainment
BY Abraham Ofori-Henaku
31-Jan-2025
Major music labels are severing ties with Boomplay, a leading music streaming platform in Nigeria, over allegations of unpaid royalties and lack of transparency. Global heavyweights Sony Music, The Orchard, and AWAL have pulled their catalogues, leaving Boomplay’s future uncertain as it struggles to maintain its dominance in Africa’s vibrant music market.
The fallout comes as Boomplay, which gained prominence after entering the African market in 2015, grapples with claims that it has failed to remit royalties for over two years. According to industry insiders, the platform owes significant back payments dating back to 2021. These unresolved issues have sparked frustration among stakeholders and triggered a high-profile exodus of content from the platform.
Fans of Nigerian superstars such as Davido, Wizkid, Tems, and Lojay were among the first to notice the missing tracks. These artists, whose works were previously accessible on Boomplay, are now part of the growing list of creators affected by the platform’s royalty issues. As the music industry buzzes with speculation, many observers see the label withdrawals as a turning point for Boomplay, which has built a reputation as a gateway to affordable music streaming for millions of low-income Nigerians.
Nigeria’s record-high inflation rate, currently at 33%, has compounded the platform’s challenges. With declining purchasing power among its 200 million citizens, Boomplay’s premium subscriber base has shrunk, threatening its freemium model that relies on ad-supported streaming. This financial strain reportedly forced the company to implement layoffs, further undermining its capacity to maintain trust with rights holders.
Industry analysts suggest that Boomplay’s focus on serving users outside urban centers—a strategy that helped it achieve over 95 million monthly active users—has been severely tested by the economic downturn.
The growing backlash highlights a perceived lack of accountability on Boomplay’s part. Music executive Igbokwe Amaechi described the arduous process of collecting royalties from the platform, noting that some labels were compelled to demand payments in person due to the absence of a clear and transparent system.
In an industry where revenue from streaming platforms is critical, Boomplay’s alleged failure to meet its obligations strikes at the core of its relationship with artists and labels. The situation mirrors previous disputes between global music firms and platforms like TikTok over similar issues, underscoring the importance of trust and transparency in digital music distribution.
This latest crisis poses a significant challenge to Nigeria’s burgeoning music industry, which has recently enjoyed global acclaim through the Afrobeats movement. The withdrawal of major international labels not only disrupts revenue streams but also sends a warning signal to potential investors wary of systemic inefficiencies.
As stakeholders assess the fallout, experts are calling for urgent reforms to address the challenges that hinder the sector’s growth. Greater collaboration between private entities and government regulators could pave the way for a more stable and transparent industry capable of leveraging Nigeria’s vast potential as an emerging music powerhouse.
For Boomplay, the road to redemption will likely require a strategic overhaul. Whether it can regain the trust of artists and labels remains an open question—one that could determine its future in Africa’s fiercely competitive streaming market.
BY ABRAHAM OFORI-HENAKU
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