African Streaming Service Mdundo Inks Universal Music Licensing Deal
The African streaming service Mdundo has officially entered into a licensing agreement with Universal Music Group (UMG), which will bring its artists’ music to the platform’s more than 17 million confirmed (as of Q1 2022) monthly active users.
Nairobi headquarters Mdundo (which debuted on the public market in Denmark back in November 2020) and Universal Music Group unveiled their pact via a formal release today. Under the agreement, tracks from UMG artists such as The Weeknd and Drake are ready to be made available to Mdundo users, who are mainly based in Nigeria, Kenya and South Africa.
In a statement to the partnership, the nine-year-old CEO of Mdundo, Martin Møller Nielsen, said in part: “Our focus is to offer a relevant service to the hundreds of millions of potential users in Africa who are online. In recent years, Mdundo.com has reported explosive growth, from 5 million monthly users in June 2020 to expected 19-20 million monthly active users in June 2022 and +225% revenue growth for the year ending June 2022. »
The license pact represents the latest in a series of efforts by UMG to achieve a stronger presence in Africa’s fast-growing music industry; The big brand last year completed an expanded agreement with Boomplay, another of the continent’s leading streaming services, and made a number of high-profile management appointments.
Apart from the current Mdundo agreement, UMG has so far in 2022 launched Virgin Music Label & Artist Services Africa (which aims to create “global success for its list”) and signed an Africa-focused licensing partnership with Audiomack. Similarly, Warner Music Group started the year with the acquisition of the African distributor and rights management company Africori.
Regarding Mdundo’s position in particular, managers said last month that they expect their platform to boast 50 million MAUs and positive EBITDA by 2025.
In the short term, the service is committed to attracting a total of 25 million MAUs by June 2023, with a targeted turnover of DKK 13 million to DKK 16 million (currently $ 1.77 million to $ 2.19 million) for the 12-month stretch. Managers have also recognized “a long-term ambition to move into other types of online content and entertainment, such as sports content and podcasts to attract a wider audience to the service.”
The Mdundo share (DK0061286101) showed an improvement of 5.43 percent during Friday’s trading and ended at 7.38 DKK (1.01 USD) per share when the market closed. The figure marks a relatively moderate fall from the company’s listed listing in 2020, but an improvement from the end of 2021, when shares fell to € 0.59 / $ 0.60 apiece. Of course, other streaming platforms, from market leader Spotify to Anghami and the recent public Deezer, have also had stock price declines this year.