Mdundo is one of the homegrown streaming services in Africa trying to compete with the big global DSPs. Its latest financial results reveal that it ended 2023 with 30.8 million monthly active users, up from 23.4 million at the end of 2022, and 13.3 million the year before that. However, the company’s revenues fell by 12% to DKK 5.7m ($824k) in the second half of 2023 – the period its financials cover. That’s despite its subscription revenues growing by 48% to DKK 3.1m ($448.1k) because advertising revenues fell by 41%. Why? “The company entered into a reseller agreement with an established South African partner, and a delayed and unsatisfactory execution of the agreement has resulted in significantly lower results than expected,” explained Mdundo. The company has predicted that its revenues will be growing again in 2024, saying that its view “of the earning potential and our unique advertising product in the African markets is unchanged”. In a separate announcement, Mdundo also said that it expects to pay out between $1.2m and $1.5m to distributors and artists in its 2023-2024 period, divided between the music of around 156,000 artists.
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Source: Music Ally archive: Mdundo
