This is true. And we don't have the numbers that Apple, Groove Music, Spotify etc have. This plan seems odd as it's not easily scalable. I would have thought African telcos would come together and create a continent wide music distribution system, leverage on the amount of content to attract users and eventually revenue.
This is not out of choice. There are certain requirements needed to have your music on these stores and not everyone has those resources. Apple for instance,if you go at it alone, you need:
- At least 20 albums in your catalog.
- UPCs/EANs/JANs for all products you intend to distribute.
- ISRCs for all tracks you intend to distribute.
As you can see, the first three alone are impossible for a new artist to achieve
- Apple ID
- Universal Product Codes & International Standard Recording Codes
- US Tax ID
- Legal Secretary
- Individual contracts for each region where you want your music available
The alternative is to go with an approved Aggregator (Basically brokers/middle men, experts in delivering content to iTunes. For a fee they can correctly format and deliver your content to Apple’s specifications). This is easier and cheaper for most artists.
View Apple-approved aggregators.
Costs depend on the aggregator. TuneCore for instance:
- $9.99/year per single.
- $9.99/year per ringtone.
- $49.99/year per album (regardless of how many songs are on the album).
Artist retains rights to their work, and take home 70% after the aggregator & iTunes take their cut. The turn around time is anywhere from 3 days to 8 weeks depending on your store of choice - Apple is quicker. or Spotify which takes longer.
This is true. There are too many middle men in Kenya making money from creators (and farmers)
This is absurd. WTH! If SafCon really wants to pay kenyan artists like their International counterparts then a 70/30 split in favour of artists should be negotiated.
Apple have repeatedly said they don't really make money from the iTunes store. It's more of a revenue retention platform - provide content for users so they buy other apple products - and they achieve this through other ways like offering complimentary cloud storage - 5GB, cross device syncing etc. A telco like this one that 'innovates' through borrowing can find something to put as a value add.
As for the taxes, safcons size means it would be getting tax breaks to operate in Kenya. That plus it's partially govt owned so their expenses aren't as much. These breaks if extended to artists would mean they get the actual 70% royalties instead of being taxed to death.
Agile dev means that audio only is their best bet right now. Primary concern is data and as long as we live in a bundles world, such services will never reach their true success potential. This service needs the telco to adapt their approach towards hybrid uncapped data plans
If safcon won't even offer unlimited whatsapp to its users - they're still bitter about losing sms revenue, yet SMS should be free as it doesn't cost the telcos anything to operate this music app will be a tough sell for them.
No offence taken. I expect them to shortchange their users every chance they get - they are profit first then people later - which is why this thread will help us outline as many expectations as we would like, so when the app does come, we have a measuring stick.
Good question as this is a legit nice name...