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MTN Earns $70m from Music Distribution in Africa

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Africa’s biggest mobile phone operator, MTN, says it made $70 million from distributing digital music in Africa from January to June 2016.

According to Techfinancials.co.za, the feat is part of MTN’s diversification strategy. This has seen it delving into mobile money, telematics, cloud computing, connected cars and telemedicine.

As part of its hunt for new revenue streams, MTN has been quietly conquering the digital music space.

There is nothing quiet about MTN Music generating more than R944 million ($70 million) in revenues in the six months to end-June 2016 from distributing music digitally in Africa.

For MTN, this performance in the digital music space is nothing but part of its diversification strategy to retain customers and differentiate itself from competitors.

Asked how MTN is differentiating itself in this space, Herman Singh, MTN Group chief digital officer, told Techfinancials.co.za that MTN has built the capability to offer music to its customers in eight different formats: MP3 (full tracks), ringtones (true tones), Caller Ring Back Tones, Streaming (music on demand), radio streaming, IVR radio, music subscriptions and music videos. In addition, MTN Music offer a variety of exclusive local content.

MTN does not produce music, but earns income from music distribution through MP3, ringtones, caller ring back tones, music on demand and music subscriptions.

Africa’s biggest mobile phone operator has built a reputation in the music space and hit $70 million in revenues for the six months to-end June 2016, said Singh.

Though the man on the street might be only vaguely be familiar with MTN’s role in the music industry, it’s a company that has created a niche for itself among musicians.

In the past few years, the mobile phone firm based in the leafy suburb of Fairlands in Johannesburg has grew into Africa’s biggest digital music distributor.

Singh said MTN Music now has about 70 million customers in Africa. On average there are 50 million downloads across all our music offerings each month, added Singh.

The biggest region that downloads more music on MTN platform is the West Africa region – which consists of Nigeria, Cameroon, Cote D’Ivoire, Benin, Ghana, Liberia, Guinea-Conakry and Guinea-Bissau.

The upshot of MTN’s efforts in promoting digital music has been that the mobile phone operator is gaining market share in attracting music lovers on its platforms and its music download sales are improving.

In 2015, MTN scooped the exclusive rights to caller back ring tone or caller tune to Adele’s single title ‘Hello.’

The deal was accomplished through MTN’s content aggregator, Content Connect Africa.

Adele’s song Hello remains the biggest download ever recorded for MTN Music at 24 million.

But Singh told Techfinancials.co.za that MTN Music platform users are downloading more local music as compared to international songs.

Digital technology is enabling music industry to effectively reach mass numbers of consumers across Africa, and MTN with its biggest footprint in Africa is an ideal company to distribute the music.

With more than 70 million MTN Music customers and $70 million in revenues, MTN seems to be willing to stick around and is not treating digital music as a one-night stand.


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MTN Launches One TV with Free-to-View, Pay-as-You-Go

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MTN Group has begun rolling out MTN One TV, a new entertainment proposition designed to make digital video content more accessible, relevant, and flexible for customers across African markets.

MTN Launches One TV with Free-to-View, Pay-as-You-Go

Introduced in line with MTN’s Ambition 2030 strategy, MTN One TV brings together local storytelling, live channels, international programming, and market-specific viewing options tailored to how customers across the continent access and pay for digital entertainment.

The proposition is designed to give customers greater choice in how they watch content, with viewing models that may vary by market and can include free-to-view content, advertising-funded experiences, pay-as-you-watch access, and subscription offerings.

Depending on local availability, customers may also be able to pay through airtime, Mobile Money, and other locally supported payment methods, helping to reduce common barriers to streaming access.

Beyond enhancing customer experiences, MTN One TV creates new opportunities for African creators, broadcasters, advertisers, and ecosystem partners by helping connect content to wider audiences through MTN’s scale across connectivity, payments, and digital services.

By bringing together a broad mix of content experiences under a single proposition, MTN aims to support greater content discovery, broader audience reach, and sustainable growth across Africa’s digital entertainment ecosystem.

Anchored in MTN’s strategic platforms of Connectivity, Fintech, and Digital Infrastructure, MTN One TV forms part of the Group’s broader ambition to build digital experiences that create value for customers while enabling participation and growth across Africa’s digital economy.

“Entertainment is increasingly becoming an important gateway to digital participation,” said Selorm Adadevoh, MTN group chief commercial, strategy and transformation officer.

“Through MTN One TV, we are leveraging the scale of our connectivity, fintech, and digital capabilities to make relevant content more accessible while creating new opportunities for Africa’s creative and digital economies. This is aligned with our ambition to deliver digital solutions for Africa’s progress.”

MTN One TV is being introduced progressively across MTN markets through a phased rollout approach that reflects local market needs, existing services, and partnership opportunities.

Over time, MTN will bring together a combination of video capabilities, content partnerships, and customer experiences under the MTN One TV brand to create a more consistent and scalable entertainment proposition across its footprint.

Through MTN One TV, MTN continues to extend its role beyond connectivity by combining entertainment, payments, and digital services to deliver experiences tailored to the needs of African consumers.

The rollout supports MTN’s Ambition 2030 vision of leading digital solutions for Africa’s progress while expanding access to digital entertainment across the continent.

 


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IATA Drops Bombshell: Nigeria Among World’s Most Expensive Countries to Run an Airline

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International Air Transport Association (IATA) has identified Nigeria as one of the most expensive countries in the world for airline operations, citing high taxes, charges and operational costs that continue to weigh heavily on local carriers.

IATA Drops Bombshell: Nigeria Among World's Most Expensive Countries to Run an Airline

IATA’s Regional Vice President for Africa and the Middle East, Kamil Al-Awadhi, disclosed this during the association’s Annual General Meeting held in Rio de Janeiro.

Al-Awadhi said that although Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, had been pursuing reforms aimed at improving the aviation sector, airlines operating in the country still faced enormous cost pressures.

According to him, the high-cost operating environment has continued to affect the profitability and competitiveness of Nigerian airlines, making it difficult for the industry to realise its full potential.

He noted that excessive taxes, regulatory charges and other operating expenses remained major obstacles to airline growth across the region, with Nigeria ranking among the most challenging markets from a cost perspective.

Al-Awadhi urged member states of the Economic Community of West African States to adopt a proposed 25 per cent reduction in aviation taxes and charges to ease the burden on airlines and passengers.

According to him, lowering taxes and charges would reduce airfares, stimulate passenger traffic and strengthen the competitiveness of carriers operating within West Africa.

He stressed that a more supportive policy environment was critical to unlocking the economic benefits of aviation, including increased trade, tourism and regional integration.

Industry stakeholders have consistently advocated lower taxes and regulatory fees, arguing that the current cost structure makes air travel less affordable and limits the growth of the sector.

IATA’s latest remarks add to calls for governments in West Africa to implement policies that will promote a more sustainable and competitive aviation industry across the region.


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NASENI Trains 50 Women in Kano on Renewable Energy Technologies Under She-Powers Initiative

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The National Agency for Science and Engineering Infrastructure (NASENI), under the leadership of its Executive Vice Chairman/CEO, Khalil Suleiman Halilu, has trained 50 women in Kano State on inverter and battery technologies through its She-Powers Energy Initiative.

NASENI Trains 50 Women in Kano on Renewable Energy Technologies Under She-Powers Initiative

The three-day programme, held at the Technology Incubation Centre, Farm Centre, Kano which ended yesterday, was designed to equip participants with practical renewable energy skills, promote women-led enterprises, and enhance sustainable livelihoods.

 The initiative forms part of NASENI’s broader commitment to empowering women, creating economic opportunities, and expanding participation in Nigeria’s growing clean energy sector. It also aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu by supporting job creation, entrepreneurship, and inclusive economic development.

 Through targeted interventions such as the She-Powers Energy Initiative, NASENI continues to demonstrate its commitment to leveraging technology and innovation to improve lives and drive sustainable development across the country.

Photos: Participants at the She-Powers Energy Initiative training organised by the National Agency for Science and Engineering Infrastructure (NASENI) held at the the Technology Incubation Centre, Farm Centre, Kano yesterday.


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