Spotify royalty payouts to Nigerian, South African artists boom in 2024

JOHANNESBURG (Reuters) - Audio streaming giant Spotify's royalty payments to artists from Nigeria and South Africa - its two biggest African markets - spiked to around $59 million last year as performers rode a wave of growing interest in music from the continent.

The Swedish company paid out some $10 billion in royalties worldwide in 2024. And while Africa represents only a small part of its offering, interest in African artists has ballooned, buoyed in part by internationally recognised acts like South African singer Tyla and Nigeria's Burna Boy.

Around 250 million user-created playlists now feature at least one Nigerian artist, and 220 million contain a South African, the company said on Thursday.

"What we're seeing is an excellent evolution around more and more mid-tier or up-and-coming artists making a living," said Jocelyne Muhutu-Remy, Spotify's managing director for Sub-Saharan Africa.

Nigerian artists received over 58 billion Nigerian naira ($38 million) in royalties last year, more than double the 2023 figure. Royalties for South African performers reached 400 million rand ($21 million), up 54% year-on-year.

Much of that came from outside their home markets. Nigerian artists have seen a 49% increase in export growth over the past three years, while South Africa saw export growth of 104%.

The number of Nigerian artists earning 10 million Naira, meanwhile, doubled year-on-year and has tripled since 2022.

In South Africa, the number of those earning between 100,000 and 500,000 rand has doubled over the past three years.

($1 = 1,532.3400 naira)

($1 = 19.0170 rand)

(Reporting by Siyanda Mthethwa; Editing by Joe Bavier)