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The Arab music industry – plagued by rampant piracy, free YouTube clips and outdated channels – is the new target of global streaming giants intent on bringing antiquated business into the digital age.
Following their successes in Europe and the Americas, online platforms are looking to invest in the emerging markets of the Middle East and North Africa (MENA) and to capture their large population of hyper-connected young people.
In a region plagued by political turmoil and economic crises, streaming giant Spotify hopes to wipe out a Middle Eastern business that has failed to keep pace in a world of paid digital content.
“We came with a full Arabic service, localized playlists and a local team,” Claudius Boller, Spotify’s chief executive for the Middle East and Africa, told AFP news agency. “We are only at the beginning.”
Palestinians in the West Bank city of Bethlehem cheer on Arab Idol contestant Yaacoub Shahin, who won the 2017 edition of the pan-Arabian song contest [File: Ahmad Gharabli/AFP]
Global streaming revenue grew 22.9% to $ 11.4 billion in 2019, accounting for more than half of the recorded music business for the first time, according to the International Federation of the Phonographic Industry.
But after its heyday in the 1990s and 2000s, the Arab pop music industry has declined over the past decade due to the upheaval following the anti-government riots of the Arab Spring.
Spotify, launched in the Middle East in 2018, says it wants to change that by giving regional talent the opportunity for global exposure on its platform.
“We came to the region to introduce a service that is not just an addition to MENA, but really adds value by elevating regional music streaming,” said Boller.
“Today, Arab music and artists are being shown to the world and discovered through Spotify,” he added, citing a billboard in Times Square in New York showing Egyptian actor and rapper Mohamed Ramadan.
Egyptain pop star Amr Diab performs in the coastal resort of Ain al-Sukhna, east of Cairo [File: Amro Maraghi/AFP]
International hip-hop is the most popular genre on Spotify in the region, but the most sought-after artists are all homegrown, including Kuwaiti rapper Queen G, Egypt Marwan Moussa and Morocco Stormy.
Boller said the Swedish music giant’s growth in the Middle East was “phenomenal” but declined to provide figures.
French streaming service Deezer took a bold approach in 2018 by signing an exclusive deal with Rotana, the largest record label in the Arab world, owned by Saudi businessman and prince Alwaleed bin Talal.
But Rotana, founded in the 1980s and with little digital presence other than YouTube and an outdated website, quickly lost momentum with the departure of many of its best artists.
At the time of signing, Rotana’s chief executive Salem al-Hendi said there would undoubtedly be a “return on revenue”, but two years later the company failed to acquire new notable stars or ad increase production.
Neither Deezer nor Rotana responded to AFP’s request for comment.
Palestinian Arab ‘Idol’, singer Mohammed Assaf performs during the 13th Mawazine Rhythms of the World music festival in Rabat [File: Youssef Boudlal/Reuters]
Pierre France, a researcher at Orient Institut Beirut who studies the field, said “mutual ignorance” makes cracking the Middle East a tall order.
“It’s a no-brainer because the Arab market is not very well known,” he told AFP.
Some streaming services thought they were taking the gold, only to realize they were dealing with an industry that is “aging”, “disorganized” and “lacking in vision,” he said.
On the local side, there is “a fantasy” of entering the international market, but with little knowledge of what he wants to hear, he added.
Lebanese music streaming platform Anghami, popular in the Middle East due to its deep understanding of regional tastes and culture, said that musicians and labels need to embrace new technologies and pay platforms.
“Most artists still prefer to post their tracks on YouTube for free, rather than put them behind a paywall,” said Arun Sajjan, Anghami’s head of licensing.
“There is a distinct difference in how free users listen to Arabic music more than paid users across the region.”
Anghami still depends on the subscribers of mobile operators to reach its paid users, as its customers are not comfortable with credit cards as a payment choice.
“The challenges we face are many: the region is constantly in turmoil and users are not yet ready to consider paying for premium services to listen to music,” he said.
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