Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Binance hit by $6.3-billion hack, the biggest crypto heist ever

      Binance hit by $6.3-billion hack, the biggest crypto heist ever

      30 October 2026
      AI has started a tech 'supercycle', says Datatec's Jens Montanana

      AI has started a tech ‘supercycle’, says Datatec’s Jens Montanana

      29 October 2026
      Icasa wants your fingerprint before you can get a Sim card

      Icasa wants your fingerprint before you can get a Sim card

      29 October 2026
      South Africa's AI policy team is racing a 30 November deadline

      South Africa’s AI policy team is racing a 30 November deadline

      29 October 2026
      A Finnish supercomputer could help close South Africa's AI computing gap

      A Finnish supercomputer could help close South Africa’s AI computing gap

      29 October 2026
    • World
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Record labels face the music

    Record labels face the music

    By Editor23 August 2011
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Benjy Mudie

    A recent PricewaterhouseCoopers (PwC) report, SA Entertainment and Media Outlook: 2010-2014, paints a gloomy picture of the country’s recorded music industry, with sales falling in double digits year on year.

    The question exercising the minds of local music industry executives is whether new models of selling music online can help arrest the fall in sales.

    Paul Thackwray, GM for Columbia/Epic Africa at Sony Music Africa, says that with no indications that Apple’s popular iTunes music service will come to SA any time soon, the move to digital platforms may take longer than expected — to the detriment of both record labels and musicians.

    Thackwray says despite growing broadband penetration, the SA music market has “regressed next to the rest of the world”. He says connected middle-class South Africans are highly aware of digital distribution channels abroad and are willing to pay for media but they are frustrated by a lack of awareness about where the channels of access can be found.

    PwC’s report says spending on digital music in SA is not expected to surpass spending on physical formats over the next five years. By 2014, digital spending will be little more than half of spending on physical-format media, so the industry continues to rely on retailers for distribution.

    “SA is still very much a physical territory,” says Benjy Mudie, owner of record label Fresh Music and artist & repertoire consultant at Universal Music Group SA. “I think it’s going to take some time to make the transition Australia, Japan, Sweden and the rest of the world is making to digital — be it subscription models or paid downloads.”

    But labels not selling their music through services like iTunes are “missing a huge market”, says Mudie.

    Paul Thackwray

    At the same time, physical retail has become “shoe-boxed” and is no longer breaking new artists, which is the industry’s lifeblood, he says. “Retail used to love music. Now it’s about what they can shift off their shelves this week.”

    The licensed digital market has developed relatively slowly in SA due to low broadband use and local music labels tend to regard digital channels as a marketing platform only. “Right now, digital distribution provides a marketing platform in the product lifecycle of a music release in SA,” says Thackwray. “It’s still not a real revenue stream.”

    Could streaming subscription services change that? In Europe and more recently the US, Sweden’s Spotify has become a music phenomenon, offering unlimited access to streaming music for a small monthly subscription. These services are doing well in developed markets because of convenience — it’s easier than pirating music — and they allow listeners to engage with like-minded communities.

    In SA, mobile could be the platform of choice for delivering streaming music. PwC says mobile phone downloads already dominate the digital entertainment market in the country. The most popular content is video and music.

    It’s not that consumers necessarily want to pay for music — whether the industry likes it or not, those days may be over. Rather, it’s that services like Spotify make “renting” music the path of least resistance. And the global music industry is realising it’s better to get some of the pie than no pie at all.

    Many record companies in Sweden are already collecting more revenue from Spotify than from traditional physical sales, a fact that’s all the more impressive when one considers that Sweden is also home to The Pirate Bay, the popular BitTorrent tracker that helps people find copyrighted material online.

    Thackwray reckons allowing people seamlessly to browse and discover new music for free — or for a small fee that covers the cost of licensing music from labels — is more important than figuring out how to charge for music online using traditional models because those who really connect with a particular artist or band usually find a way to support them, be it by buying a ticket to a show or a piece of merchandise.

    Mudie is more prosaic. He says there is a “correlation between making great music and selling it, be it digital or physical. People will always support a good product.”

    Consumers are always looking for new music to consume and they want to find it through trusted, convenient channels, he says.  — Craig Wilson, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Apple Benjy Mudie Fresh Music Paul Thackwray Sony BMG Spotify Universal Music
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGijima turns in dismal annual results
    Next Article Management shake-up at BCX

    Related Posts

    The hidden cost of owning a folding phone

    The hidden cost of owning a folding phone

    28 October 2026
    Apple's foldable iPhone Duo goes on sale in South Africa - John Ternus

    Apple’s foldable iPhone Duo goes on sale in South Africa

    23 October 2026
    The R77 000 iPhone has arrived in South Africa

    The R77 000 iPhone has arrived in South Africa

    16 October 2026
    Company News
    Paratus continues to reshape connectivity in Namibia

    Paratus continues to reshape connectivity in Namibia

    29 October 2026
    Rate hikes threaten a household recovery built on cheaper credit - John Gellatly

    Rate hikes threaten a household recovery built on cheaper credit

    29 October 2026
    Choosing the right AI path for banks and large enterprises - Matthew Barnard BBD

    Choosing the right AI path for banks and large enterprises

    29 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Binance hit by $6.3-billion hack, the biggest crypto heist ever

    Binance hit by $6.3-billion hack, the biggest crypto heist ever

    30 October 2026
    AI has started a tech 'supercycle', says Datatec's Jens Montanana

    AI has started a tech ‘supercycle’, says Datatec’s Jens Montanana

    29 October 2026
    Icasa wants your fingerprint before you can get a Sim card

    Icasa wants your fingerprint before you can get a Sim card

    29 October 2026
    South Africa's AI policy team is racing a 30 November deadline

    South Africa’s AI policy team is racing a 30 November deadline

    29 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter