Sony Music: Major labels aren’t Africa’s music saviours, they are here to make money too

Why Sony Music is in Nigeria’s market and how they intend to make money.

When Sony Music announced in 2016 that they had secured Davido to a recording deal, and rumours began to swell of a deal with Wizkid, the entire country was in overdrive. They represented something between the shattering of a glass ceiling for the country’s young creatives, and a messianic coming.

Sony Music and every other major label who have come to do business in the Nigerian music industry, or with Nigerian talents are regarded as messiahs. They are entering an industry where piracy has crippled record sales, the laws to guide the industry are archaic and almost unenforced, and the potential to do great and improved business with the millions of creatives.

Why They Came

 

Sony Music is a business. They didn’t come to Nigeria to ‘save’ the music industry. They are a record label, in the business of releasing music and selling records. That means they have targets that need to be met and surpassed, a bottom-line which they need to improve, and generally achieve financial success in whatever market they come into.

Armed with their three major deals including Recording Deals, Distribution Deals, and Licensing deals, they showed up at our doorstep with the aim of doing business, tapping into the market, and playing both locally and internationally.

Nigeria was an attractive business because of the traction the country’s music was getting. Wizkid and Davido had dominated the continent, with the former getting to record with Drake. In the UK and US, they were the toast of the African community, who were filling out top venues to experience them play live.

That traction, the buzz, the numbers, and the potential to break a new sound were attractive to them, hence their entrance into the market. They didn’t come in to save, they came to

Deals: Davido and “Son Of Mercy”

 

For Sony Music Entertainment Africa, Wizkid and Davido represented the fore of the Nigerian and African movement. These stars sit at the apex of the structure, with followership running into millions both on the continent and beyond.

If the company were ever to start big with a clear shot at the goal of domination, Wizkid and Davido were going to be the perfect fit. For them it was simple; Starboy and OBO had done their work in Africa. They had reached the zenith of their careers in Africa and didn’t need work to grow.

Sony did not have the time to work on smaller artists. For talents to play on the big stage, they had to have done all the work on the small stages.

Davido was announced in 2016, in a deal that was executed by Nigerian-born American music executive, Efe Ogbeni, who has had extensive experience and success with numerous foreign artists.

This news was made on social media by Efe Ogbeni, Ogbeni was also expected to executively produce Davido’s album for Sony, as announced by Adam Granite, President of a division of Sony Music:

“We are thrilled to welcome Davido into the Sony Music family,” a statement read. “We are very much looking forward to bringing one of Africa biggest stars to the world. We are also excited to partner with Kamal Ajiboye, Davido’s manager as well as Efe Ogbeni, who will be executive producing the album on our behalf.”

After the announcement, there was a huge delay in the release of material by Davido. The singer was spotted in studios, recording and collaborating with US stars for his next project.

The delay made him unhappy, which he expressed over time, and led to the release of “Son Of Mercy” EP, which was targeted to Africa, and the UK. Tinashe was the only foreign inclusion on the project, and the single failed to impact the US or UK market.

Why the delay was necessary according to sources, was the production process. When two parties go into a recording deal, there’s a certain level of creative control that follows the contractual agreement. Efe Ogbeni represents Sony’s interests with Davido. That means he has to make records that have a fair chance of competing in the USA and cracking the Billboard charts.

After releasing music for many years as an independent artist with more control, Sony music extended the process of recording and releasing. A&Rs have to listen, things have to be changed, samples cleared, papers and split-sheets signed, registration done, and more. These different processes come with a lot more work and layers of approval. Then there’s media strategy and planning for execution. Everything comes with a lot more work, which ultimately delays the process, as compared to operating independently.

Wizkid: Sounds From The Other Side

 

For Wizkid, his deal was masterminded in the USA via RCA Records. It was made with the market in mind, to introduce him to the US, and hopefully get a Billboard number 1. “Sounds From The Other Side” carried with it, the hopes and experimentation of a guy who scored ‘One Dance’ with Drake.

The album didn’t make the Billboard Hot 100, but what it did was push the sound underground and in niche communities. But it failed to crack the Billboard even with Drake on ‘Come Closer’. But there are little wins for it. The song went Gold in Canada and pushed some streaming numbers.

It didn’t crack the numbers or become a Billboard hit, but according to sources, it provided a lot of lessons.

Wizkid and Davido were not commercial signings. They were cultural signings, with the plan to introduce a new sound into the market. Commercial signings are already established acts, or artists with a base, which can be scaled to become pop. Cultural signings are experiments, with the aim of breaking, testing and pushing a movement. That means the company would have to spend more, test more, and tweak more until they find a working formula. These are the first projects for both Wizkid and Davido, and they have to go back to their boards to draw up a new strategy.

The aim here is to get a Billboard hit, and sources at the company say there are plans to keep chasing that.

Ycee: Distribution Deal In Africa

 

With the advent of Sony and what they represented, of course, people would gravitate towards them for more than record deals. That’s why the Ycee deal took place. Sony signed a deal with Ycee in October 2016, for the distribution of ‘The First Wave EP.’

The singer would later complain publicly and accuse the Sony Music Entertainment General Manager of West Africa, Michael Ugwu, of fraud. In January 2017, Ycee’s record label, Tinny Entertainment announced a termination of the deal.

Sources say the deal is still on but strained. Instead, both parties are working out constructive ways to move it forward. Tinny Entertainment still has a contract with Sony, and efforts are on to move forward with the deal, in a constructive way, bound by the stipulations in the contract.

“One of Sony’s major strengths is distribution, and we are looking to do more of this,” said Michael Ugwu, when Pulse reached him for comments.

Distribution is one of the key parts of Sony’s business, with amplification in the key areas of Africa, which include East, South and West Africa. Ycee’s ‘The First Wave’ EP distribution is not the end of it.

Some sources also stress that contrary to popular opinion that Ycee signed a deal that would enable his project to receive European and US amplification, his deal was strictly for Africa, with a detailed plan to amplify on the continent. There were never conversations about taking the music outside the continent.

The only possibility of that happening is; if a record achieves massive penetration and dominance, and there’s potential for amplification and growth in other markets, Sony Music would push for that to happen. But a deal for Africa starts and stops in Africa.

The Case For Signing With A Major Label

 

These are still early days for major labels in Africa, and a growing school of thought among musicians and music practitioners is that Sony cannot offer more than independent artists can do for themselves independently.

Artists stress that they potentially lose all of their freedom and flexibility when they sign to an organized label structure. They are now bound by numerous rules, contracts and deals from the parent body. This gives them zero control over their music. From the recording process, down to the way the music is distributed and listened.

But according to Michael Ugwu, major labels are important to the future of music, if not for anything but amplification. He cites the case of Davido whose refined deal with the company has also ushered in a new era of prosperity and wins is a great example of how a major label deal can work for local artists.

“Amplification is extremely vital for musicians, especially in this day and age. There’s a reason why the biggest artists in the world all sign with major labels, it’s because they provide them with value and more amplification than being independent,” Michael Ugwu says.

Next Steps

 

Davido and Wizkid are still very much in Sony’s plans according to sources. After their first projects, the teams have gone back to the drawing board, to re-strategize and return with new campaigns for both artists.

The aim for Sony is both to achieve dominance on the content by tapping into relevant existing structures, and building new ones to ensure smooth operations.

For record deals, the aim is to make money from streaming,

There are still plans to sign new artists, and launch new careers. Africa appears to be an exciting market due to the potential for streaming and more. Sony intends to build a strong business on the continent, and make money for themselves and all of their talents and partners.