Spotify sees ‘great future’ for Africa’s music industry

Global music streaming service Spotify recently reported a 16% revenue increase year on year, following a significant expansion into more than 30 African markets. In a recent interview with CNBC Africa, Spotify's CEO and Founder, Daniel Ek, discussed the company's strong quarterly performance, highlighting better-than-expected subscription and revenue growth alongside improved growth margins. Ek expressed his excitement about Spotify's recent launch in 39 African countries, calling it the early part of their growth journey. He emphasized his belief in Africa as the future region for the music industry and shared his personal passion for African music. Ek noted that Africa's young population's love for music and the rapid growth of Pan-African music were key trends driving Spotify's focus on the region. Specifically highlighting Kenya, Ek mentioned the strong podcast growth observed in the country, indicating that Kenyan consumers were finding Spotify's content engaging. When asked about long-term projections for Africa, Ek stressed the importance of the region as one of the fastest-growing in the world, highlighting its vibrant culture and young population. While acknowledging that significant contributions had been received from countries like the US, Russia, and India, Ek saw similarities between these markets and Africa, predicting that the continent would be the next big region for Spotify. In terms of competition from other players like Apple Music and Amazon Music, Ek emphasized Spotify's focus on creating the best consumer experience. He highlighted features like Spotify Lite, a low-weight client designed for areas where data costs are high, and popular playlists like African Heat. Ek also mentioned Spotify's advanced personalization algorithms, which learn and improve based on user preferences. With a strong commitment to the long-term growth of Spotify in Africa, Ek expressed confidence in the region's potential to significantly contribute to the company's overall success. As Spotify continues to invest in creating a tailored experience for African consumers, the future looks promising for the music industry in the region.