12 Nov 2014

Innovative music streaming services: A key area for Africa’s mobile operators to drive data revenues

According to a recent research published by Ovum, Africa is one of the few regions in the world where growth in both mobile connections and service revenue is expected over the next five years*. As the rapid up-take of mobile devices, and in particular smartphones, continues across the continent, competition amongst the mobile operators is increasing, resulting in a rapid decline of pricing for basic telecom services. Africa’s mobile operators have to start exploring alternative channels to facilitate growth.

Amongst Africa’s new smartphone generation, mobile usage patterns are relatively mature and increasing mobile data coverage across the continent is powering consumer demand for new digital services, and by far one of the most popular services is digital music.

As mobile operators hold a strategic position for the delivery of digital content services as well as the billing relationship with the customer, new innovative digital music services, such as music streaming apps, can be a key differentiator to ensuring revenue growth and market share. Last year alone digital revenues doubled in South Africa, accounting for 14 per cent of a total market worth US$63 million.

However, in a complex, multi-language and multi-device market, mobile operators must deliver a truly optimized digital experience to ensure their music offering stands out from other services such as Simfy, Spinlet, iRoking and Mdundo. But, how can mobile operators deliver new innovative music services quickly and cost effectively?

Mobile operators must work closely with existing service providers who understand the market and have experience of delivering digital and music services to Africa. By doing this mobile operators can alleviate the resource demand for content sourcing, development and service execution, but also leverage the experience of the service provider who are already delivering music services across Africa.

One example of how the partnership approach with a service provider can deliver success is the award-winning, music streaming service, “The Kleek”. The Kleek is a pan-Africa mobile music streaming service, backed by Universal Music, developed by IMImobile. The Kleek is a mobile music streaming app specifically designed and built for the African market. With content managed by IMImobile’s DaVinci Content Management System (CMS), The Kleek offers music lovers a catalogue of artists, tracks, genres, interviews and celebrity playlists, exclusive album previews, artist diaries, charts and other content, all of which can be streamed directly to a user’s mobile device.

Mobile operators have the opportunity to cement their music streaming service offering as the leading service in the market but must work in partnership with key service providers to ensure their share in a rapid changing digital music market.

For more information download IMImobile’s Mobile & Digital Entertainment Services solution overview from http://bit.ly/DigitalMusic_IMI

IMImobile are at AfricaCom 2014 in Cape Town on Stand F10. AfricaCom is your essential destination for networking, learning and business development - no other emerging market communications event compares! It is the biggest and best tech event in Africa that gathers together senior decision makers from the entire digital ecosystem.