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African Music Platforms Soar As Spotify And Apple Snooze

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Creators and consumers of music seek African online music platforms even as global entities and record labels hesitate to fully commit on the continent.


Africa is a continent of over a billion people, with a young, increasingly tech-savvy population that has growing spending power and a desire to find new ways of accessing a wider range of content. And, at a sociocultural level, music plays a huge role in Africa.

A ripe environment for major global players in the music industry, you would think, but things have been rather quiet around digital music on the continent.

Spotify only launched in South Africa last year, and its only other African markets are Algeria, Egypt, Morocco and Tunisia. Apple Music is still only available in the same handful of African countries as at the time of its launch.

Where these companies have, so far, looked on, others have filled the gap. Chinese company Boomplay, founded in 2015, through a joint venture between phone manufacturer Transsion and consumer apps firm NetEase, now has 42 million users across multiple markets on the continent, and recently secured $20 million in funding to break into more countries.

Locally and regionally focused platforms are also seeing traction. Key among them is the Nairobi-based Mdundo, which has more than 3.5 million monthly active users in countries like Kenya, Tanzania, Uganda, Rwanda, Zambia, Zimbabwe, Mozambique, Cameroon, Ghana and Nigeria.

The company works with 50,000 musicians across Africa and has signed a licensing deal with Warner Music Group.

The company’s CEO Martin Nielsen says the sector is seeing strong progress, with artists flooding to online platforms to distribute their music and labels paying more attention to the continent.

“We’re experiencing an increasing interest in Africa and the music industry, both from commercial partners, record labels, music distributors and global music services. This is a very positive development, Africa is next in line,” he says.

The growth of platforms like Mdundo, and the launch of new ones, has benefits for both creators and consumers of music on the continent. For artists, they provide new ways of getting their music out there.

Dumisani Kapanga is founder of the Malawi-based streaming platform Mvelani, which has almost 100,000 songs in its catalogue and claims to have at least 40,000 users each day. He says services like his have broken down barriers to entry for artists.

“It’s now easier than ever for musicians to put out music to their fans without relying on record labels to do so. Within minutes an artist can have their music on some of the biggest platforms out there. We are providing the means for artists to be heard easily, without the need for expensive middle men,” Kapanga says.

For consumers, it is ever easier to access music new and old, in a variety of different ways. Damola Taiwo, co-founder of Nigeria-based music downloads platform MyMusic.com.ng, says download platforms such as his own remain the most popular due to factors such as accessibility and affordability, but sees a future in Spotify-style streaming services in Africa.

“The download services seem to still be the preferred method, where individual tracks are downloaded on devices and permanently owned. This is probably due to the cost and quality of internet access on the continent,” he says.

“However, there are other more structured platforms that also exist where listeners consume music. Some of them are streaming services similar to Spotify and Apple Music while others are download services, or a mixture of both.”

What business model to pursue, and how to monetize, are key challenges faced by local music platforms, and the fact that there are, as yet, no clear answers might account for the wariness of the likes of Spotify and Apple Music to bet big on Africa. Taiwo says another key issue is the lack of major record labels on the continent.

“Most artists will fall under the ‘indie’ bracket, and even the ones that have record labels are more like a one-man business with a maximum of three artists. This makes licencing difficult as there are too many entities to talk to,” he says.

The diversity of what is loosely referred to as the “African consumer”, but is, in fact, a huge mass of people with differing tastes and preferences, also poses a problem for music platforms. Nielsen says there is a rapidly growing middle class that demands the same service that global music services offer, yet they are still very data-cost conscious.

“Plus many of the smart devices have limited storage, so we tailor-make our solution to their needs. In addition to that, we have a mass-market segment on our service with low-end smartphone devices that we see a huge potential in with simpler music offerings,” he says.

Health

Surge Of Smartphone Apps Promise Coronavirus Tracking, But Raise Privacy Concerns

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Topline: A pan-European team of researchers announced Wednesday their plan to release a smartphone app that would notify users if they’ve been exposed to someone infected with coronavirus, the latest example of tech-driven coronavirus solutions that have also raised concerns about user privacy.

  • A European project called Pan-European Privacy Preserving Proximity Tracing is working toward releasing a coronavirus tracing app in the next week that would use anonymous Bluetooth technology to track when a smartphone comes in close range with another, so if a user were to test positive for coronavirus those at risk of infection could be notified.
  • Contact tracing, or determining people who may have been exposed to someone with a virus, is an established aspect of pandemic control and was used effectively to tackle coronavirus in countries like China, Singapore and South Korea in the form of smartphone tracking.
  • University of Oxford researchers and the U.K. government are working on a similar project— but unlike other smartphone tracking systems, the British version in development would be based on voluntary participation and bet on citizens inputting their information out of a sense of civic duty.
  • The U.S. government is in talks with companies like Facebook FB and Google GOOGL and other tech companies about tracking if users are social distancing using large amounts of anonymous, aggregated location data— this information is less precise, and more likely to anticipate outbreaks rather than pinpoint individuals who have been exposed to the virus.
  • 1.5 million Israelis have voluntarily downloaded a mobile app that alerts users if they’ve come into contact with someone with coronavirus— but Prime Minister Benjamin Netanyahu has still ordered that potential coronavirus carriers have their phones monitored, a controversial move the government says is necessary, as the 17% of the population using the app is not enough to fight off the pandemic.  
  • Moscow , on a city-wide lockdown since Monday, announced Wednesday that a new phone app that will officials to track the movements of people diagnosed with coronavirus in the capital city would be launched on Thursday, saying the government will lend a smartphone to anyone unable to download the app.

Crucial quote: “We’re exploring ways that aggregated anonymized location information could help in the fight against [coronavirus]. One example could be helping health authorities determine the impact of social distancing, similar to the way we show popular restaurant times and traffic patterns in Google Maps ,” Google spokesman Johnny Luu told the The Washington Post. He made sure to note it “would not involve sharing data about any individual’s location, movement, or contacts.”

Key background: Private and public entities alike are looking for ways to fight off coronavirus as the pandemic continues. On Wednesday, there were more than 900,000 confirmed cases worldwide and nearly 50,000 deaths.Officials told The New York Times NYT that The National Health Service, Britain’s centralized national health system, is trusted by citizens— and paired with the strong data privacy laws in place, said they think people would agree to join the effort to share their private information to help trace infections. However, American tech firms are reported to still be skeptical about sharing substantial data with the U.S. government ever since Edward Snowden revealed the NSA was collecting information from the firms clandestinely. 

Surprising fact: The information tech companies have access to data that sheds light on Americans’ behavior in light of the coronavirus pandemic. According to a Facebook analysis, restaurant visits fell about 80% in Italy and 70% in Spain— while Americans only stopped eating out at a rate of 31%.

Carlie Porterfield, Forbes Staff, Business

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Technology

Apple Is Donating 9 Million Masks To Combat The Coronavirus

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Topline: Apple will donate 9 million N95 protective masks to combat the coronavirus, Vice President Mike Pence said on Tuesday, making Apple one of several California tech companies pitching in as hospitals across the country report a shortage of protective gear.

  • Pence thanked Apple for agreeing to donate 9 million N95 respirator masks to healthcare facilities across the country during a press briefing on Tuesday.
  • Pence’s remarks come after Apple CEO Tim Cook tweeted over the weekend the company was “working to help source supplies for healthcare providers fighting COVID-19” and “donating millions of masks for health professionals in the US and Europe,” but did not offer more specifics.
  • N95 respirators are masks that form a protective seal around a wearer’s mouth, filtering  out at least 95% of particles in the air, according to the Centers for Disease Control, which makes them necessary to protect healthcare workers from being exposed to the disease from patients.
  • Facebook has also said it is donating its stockpile of 720,000 masks purchased during the California wildfires last year, which degraded the air quality in the San Francisco Bay Area.
  • Apple did not immediately respond to a request for comment from Forbes asking if all of the donated masks were stockpiled because of the wildfires or if the company got them from somewhere else.

Chief critic: Teddy Schleifer, a reporter at Recode, wrote that health systems shouldn’t rely on the generosity of big tech companies to make up for the failures of the federal government. 

“But there is a risk in relying on corporate philanthropy—rather than the government—in solving this problem. For starters, it depends on the voluntary generosity of these companies to deal with an unprecedented emergency, an altruism that could vanish at any time,” he wrote.

Crucial quote: “And I spoke today, and the president spoke last week, with Tim Cook of Apple. And at this moment in time Apple went to their store houses and is donating 9 million N95 masks to healthcare facilities all across the country and to the national stockpile,” Pence said.

Key background: Apple is one of several California tech companies to give away N95 masks. In addition to Facebook, Salesforce, Tesla and IBM have also announced mask donations.

News peg: Doctors and nurses are sounding the alarm that they don’t have enough masks to protect healthcare workers. Not only does inadequate protective gear put important frontline health workers at risk, public health experts say, any situation endangering medical personnel may only further depletes the U.S. health system which already doesn’t have enough capacity to handle a surge in cases. State officials in New York and Illinois have criticized President Donald Trump for not stepping in to force companies to manufacture masks or allocate masks from private companies to ensure that states don’t outbid each other for the same supplies.

Rachel Sandler, Forbes Staff, Breaking News

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Video Games Are Being Played At Record Levels As The Coronavirus Keeps People Indoors

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Topline: With school closures, mandatory work-from-home policies and lockdowns taking place in the U.S. as a result of the Covid-19 coronavirus pandemic, gaming has seen higher engagement, especially over this past weekend.

  • Steam, the most popular digital PC gaming marketplace, reached new heights Sunday, drawing a record 20,313,451 concurrent users to the 16-year-old service, according to third-party database SteamDB.
  • Counter-Strike: Global Offensive, released by Steam-owner Valve in 2012, seems to be the top beneficiary of the increased engagement, breaking it’s all-time peak on Sunday with 1,023,2290 concurrent players, topping its previous peak last month by a million, which itself beat the record set in April 2016.
  • Like other esports, CS:GO has had to cancel events due to the virus, particularly the Intel Extreme Masters in Katowice earlier this month, though its peak viewership reached over a million, making it one of the most watched tournaments in the esports’ history.
  • Activision Blizzard’s new free-to-play battle royale spinoff Call of Duty: Warzone, launched March 10 on PC, Xbox One and PlayStation 4, is also likely benefiting, drawing in a staggering 15 million in three days, besting the record 10 million in three days by last year’s battle royale sensation Apex Legends.
  • These new heights follows similar effects of the virus on China and Italy: Telecom Italia’s CEO told Bloomberg it saw a 70% increase in traffic over its landline network, with Fortnite playing a significant part, while Chinese live-streaming service Douyu experienced increased viewership of the country’s most popular games, according to market analyst Niko Partners.
  • While gaming was considered “recession proof” during the 2008 market crash, stocks aren’t immune to the current historic drops: software developers like Activision Blizzard are facing a 9% decrease in price year-to-date, while hardware companies that rely on Chinese manufacturing like Nintendo are seeing bigger drops of 24%.

What To Watch For: If these records keep rising as the closings and lockdowns continue. Arriving this week is Nintendo’s long-awaited Animal Crossing: New Horizons for the Switch console, a relaxing “life-simulator” that’s set to have a big day with many fans not-so-jokingly asking Nintendo to launch early.

Surprising Fact: Plague Inc., a game that tasks players in creating a virus that wipes out humanity, surged in popularity late January, becoming the top-paid game on the Chinese app store at one point, but the game has now been removed in China at the direction of the government.

Further Reading: So You’re Suddenly Working From Home And Want To Try Gaming? Here’s How To Get Started.

Matt Perez, Forbes Staff, Innovation


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