A significant financial dispute has disrupted Africa’s music streaming landscape. Sony Music, The Orchard, and AWAL have reportedly pulled their catalogues from Boomplay over unpaid royalties. This decision has resulted in the removal of popular projects such as Davido - Timeless, Wizkid - Made in Lagos, Tems - Born in the Wild, Lojay - LV N ATTN, Ruger - Pandemic EP, Wizard Chan - The Messenger, Simi - Lost and Found, and many more.

Notably, new releases from artistes like Lojay, Wizkid, and Davido are also unavailable on Boomplay. While the affected distributors and labels have not gone on record to confirm the situation, reports suggest that Boomplay has failed to report and pay royalties since April 2023. Other distributors are rumored to be boycotting the platform over similar grievances, further compounding the crisis.

Boomplay's Market Role and Current Challenges

Since its inception in 2015, Boomplay has played a pivotal role in connecting African artistes with global audiences. With over 95 million monthly active users (MAU). The platform has become a crucial bridge for distributing African music, offering both freemium and premium subscription models to cater to diverse user demographics.

However, the current financial dispute raises critical questions about Boomplay’s financial health and operational sustainability. The platform’s reliance on ad revenue and premium subscriptions has been strained by Nigeria’s challenging economic environment.

In August 2024, Nigeria's inflation rate moderated to 32.15%, down from 33.40% in July. However, this still represents a sharp increase from 25.80% in August 2023, eroding consumer purchasing power. For streaming platforms, high inflation creates a significant barrier to attracting and retaining paying subscribers, further limiting reliable revenue streams.

Impact on the Nigerian Music Industry

Boomplay’s withdrawal of major label catalogues could have serious implications for the Nigerian music industry. The platform has been instrumental in distributing African music to global audiences, particularly for emerging artistes. Losing the trust of major labels and distributors undermines its reputation as a reliable partner, potentially stifling opportunities for local talent to gain international exposure.

Additionally, this dispute casts a spotlight on the sustainability of music streaming in Africa, where economic constraints and underdeveloped payment ecosystems make monetization challenging. Competitors like Spotify, Apple Music, and Audiomack may have stronger global positions, but they too face significant hurdles. For instance, Spotify recently raised its subscription prices by 44% while Audiomack has partnered with MTN to enhance accessibility.

Boomplay’s challenges reflect a broader question about the sustainability of streaming platforms in Africa. Without a viable long-term business model, the industry risks stalling, despite the immense potential of African music on the global stage.

Royalty Transparency: An Urgent Priority

At the heart of this conflict lies the issue of transparency in royalty reporting. Distributors and labels depend on accurate and timely payment data to maintain trust in streaming platforms. When platforms fail to deliver on these obligations, it erodes confidence and risks long-term damage to their business relationships.

Boomplay’s failure to address these concerns quickly and decisively could result in further withdrawals by other partners, jeopardizing its ability to operate effectively. Rebuilding trust will require the platform to implement a more transparent reporting system, provide regular updates to stakeholders, and settle its outstanding obligations without delay.

What Lies Ahead for Boomplay and Music Streaming in Africa

As African music continues to captivate global audiences, platforms like Boomplay have a unique role to play in shaping the industry’s future. However, without transparency, financial stability, and trust, the promise of African music’s global rise could falter. For Boomplay, the path ahead is clear: rebuild trust, resolve financial disputes, and strengthen its foundations to secure its place as a leader in the industry.