Digital Music - Nigeria

Nigeria

Highlights

In Nigeria, revenue in the Digital Music market market is projected to reach US$55.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.31%, resulting in a projected market volume of US$71.22m by 2029.
The largest market withNigeria's Digital Music market market is Music Downloads, with a market volume of US$26.71m in 2024.
In global comparison, most revenue will be generated the United States, amounting to US$19.08bn in 2024.
In Nigeria's Digital Music market market, the number of users is expected to amount to 54.7m users by 2029.
User penetration in Nigeria will be 20.8% in 2024 and is expected to rise to 21.3% by 2029.
The usage share of Audiomack in Nigeria amounts to an estimated 61.0% of the Digital Music market market and the selected region in 2023.
In the year 2023, a share of 39.3% of users is in the 39.3% group withNigeria.
In Nigeria, the digital music market is witnessing a surge in local content consumption, driven by a growing youth demographic and increased internet access.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in Nigeria has been experiencing significant growth in recent years, driven by changing customer preferences and the increasing availability of digital music platforms. Customer preferences in Nigeria have shifted towards digital music consumption due to its convenience and affordability. With the rise of smartphones and improved internet connectivity, more Nigerians now have access to streaming platforms, allowing them to listen to their favorite songs anytime and anywhere. This shift in customer behavior has led to a decline in physical music sales, as consumers prefer the convenience of digital downloads or streaming services. One of the key trends in the Nigerian Digital Music market is the increasing popularity of local music. Nigerian music, particularly Afrobeat and Afrobeats, has gained international recognition in recent years, thanks to artists like Burna Boy and Wizkid. This has led to a surge in demand for Nigerian music on digital platforms, both domestically and globally. Streaming platforms have capitalized on this trend by curating playlists and promoting Nigerian artists, further driving the growth of the Digital Music market in Nigeria. Another trend in the market is the emergence of local digital music platforms. While global streaming giants like Spotify and Apple Music have a presence in Nigeria, local platforms like Boomplay and MTN Music have gained significant market share. These platforms understand the local music landscape and cater to the preferences of Nigerian consumers. They offer a wide range of local music content, including songs by upcoming artists, which appeals to the Nigerian audience. Additionally, these platforms often have partnerships with local telecom operators, making it easier for consumers to access their services. Local special circumstances in Nigeria also contribute to the development of the Digital Music market. Nigeria has a large and young population, with a high percentage of people below the age of 30. This demographic is more inclined towards digital music consumption and is driving the demand for streaming services. Furthermore, Nigeria has a vibrant music industry, with a rich cultural heritage and diverse music genres. This creates a favorable environment for the growth of the Digital Music market, as there is a constant supply of local content that resonates with the Nigerian audience. Underlying macroeconomic factors also play a role in the development of the Digital Music market in Nigeria. The country has experienced steady economic growth in recent years, which has led to an increase in disposable income. As more Nigerians have access to smartphones and internet connectivity, they are able to spend more on digital music subscriptions or purchases. Additionally, the government's efforts to improve internet infrastructure and reduce data costs have further facilitated the growth of the Digital Music market. In conclusion, the Digital Music market in Nigeria is experiencing significant growth due to changing customer preferences, the popularity of local music, the emergence of local digital music platforms, local special circumstances, and underlying macroeconomic factors. As more Nigerians embrace digital music consumption, the market is expected to continue its upward trajectory in the coming years.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Music, Radio & Podcasts market, which comprises all revenues generated by traditional and digital radio advertising, consumer purchases of live music event tickets, all sales of tangible audio recording formats, paid digital downloads of professionally produced single tracks / compilations, ad-supported services, and subscription-based, on-demand streaming services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.