Companies
Mdundo wires Sh24 million to Kenyan rights owners
Friday February 10 2023
Mdundo CEO and co-founder Martin Moeller Nielsen (right), with Chief Operating Officer Njiru Njagi. FILE PHOTO | DIANA NGILA | NMG
Online music streaming platform Mdundo has paid Sh60 million, which is over half of their total revenue for a six-month period to December 2022, to rights owners out of which approximately 40 percent was paid out to Kenyan content owners.
During the period, the firm booked Sh115 million in total revenue, translating to an almost two-fold jump compared to a corresponding period the previous year with unique monthly users growing 15 percent to 23.4 million.
Read: Mdundo rides on mass market for growth
The firm attributed the growth in the number of users to among other factors increased smartphone usage, internet penetration and partnerships with telecommunication companies.
“Approximately 40 percent of all downloads on the platform are those of Kenyan content thus an approximate corresponding value has been paid out to Kenyan artists. This translates to about Sh24 million. It is however not possible to give the actual figure since payments are made to label records and not to individuals,” Mdundo CEO Martin Nielsen told Business Daily.
Notably, of the 23.4 million unique subscribers, 3.5 million are from Kenya which is a rise from the 2.7 million recorded in December 2021.
Also read: Africa rising as the new global music talent hub
The platform primarily relies on two revenue streams which include advertising and user subscriptions.
During the first half of December, advertising revenue closed at Sh77.8 million being an 83 percent rise.
