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FutureStarrAnghami Revenues Jumped 36% in 2022 on Solid Paid Subscriber Growth
Anghami, an Abu Dhabi-based music streaming service, reported strong growth in revenues for 2022 due to strong paid subscriber growth. Its total number of paying subscribers increased 21% to 1.52 million and music streams rose 20% year-over-year.
Recognize The Music, a UK initiative, has joined forces with several trade bodies and collecting societies to introduce Audio ID, which will enable venues to identify songs played publicly and process royalty payouts accordingly.
Anghami Music Streaming Service's Middle East and North African Revenues Increase 36% in 2022 Due to Strong Paid Subscriber Growth
Abu Dhabi-based Anghami experienced strong revenue growth and monthly paid subscriber growth in the first half of 2022. The company reported adding 1.52 million paying subscribers while increasing music streams by 20% year-on-year.
The company notes that the growth in paying subscribers was largely driven by the platform's Arabic-language content. Furthermore, music streams increased by 20 percent year-on-year as the company's catalog expanded.
According to a Media Nations report, streaming music services have become the main source of audio listening for young people in the UK. From 8% in 2017 to 20% by 2022, young people's time spent listening to audio will increasingly be spent through music streaming services.
YouTube will soon separate its three primary video formats into distinct tabs, making it simpler for people to discover and consume music across the platform. Neal Mohan, YouTube's Chief Product Officer, explained to the music industry that this change is intended to better serve music creators and their fans.
Spotify recently reported a growth in their total paid subscriber base to 205 million in Q4 2022, an increase of 14% year-on-year. Furthermore, their free ad supported user base increased to 256 million during this same quarter.
Meanwhile, music licensing agency PPL paid out over $300 million to 165,000 performers and recording rights holders in 2022. Furthermore, several trade bodies are pushing the "Credits Due" initiative, which strives to guarantee accurate song metadata.
Streaming has become a crucial aspect of music consumption, but it has also altered the balance of power in the industry. According to MIDiA research, an increasing number of artists are opting to let their work be used by third parties rather than themselves, leading to more content creation and less artistic freedom. This shift could potentially cause artists to lose sight of their true artistic value and put their work at risk.
In the first half of 2022, Anghami's total revenues rose by 36% despite an unfavorable impact from foreign currency exchange rates. Additionally, the music streaming platform saw growth in its paying subscribers with 1.52 million users and a 20 percent rise in music streams.
Although music-streaming users in the United States have remained mostly flat, subscriptions have seen a dramatic growth. Spotify's Q2 2022 financial results revealed that it now boasts 188 million premium subscribers and 256 million free (ad-supported) users, with monthly active users now reaching 433 million.
Apple's services division, including Apple TV+ and Music, generated $19.6 billion in revenue for the second quarter of 2022. Though slightly down from last quarter's figure, this still represents a sizable sum of revenue.
Tencent Music Entertainment Group, whose business is mostly social entertainment-based, saw its revenues increase by 31.7% even though their social entertainment segment experienced a drop of 15% in revenue. On the contrary, their music subscriptions rose by 26%.
The company reported a 20% reduction in operating expenses, due to the reduction of cloud computing fees. Furthermore, they have reduced their headcount by 22%.
YouTube's advertising revenue decreased 1.9% compared to the prior quarter, yet it saw a 2% boost in paid subscribers for its three main formats - long-form videos, short films and live streams. The company plans on revamping how it organizes its content by splitting video tabs into distinct sections.
Additionally, the company is encouraging its artists to provide better metadata by using the International Standard Name Identifier, or ISNI. This new standard should enable rights owners to get more precise data.
As the digital world continues to transform, it is vital for companies to stay abreast of these developments and stay ahead of the competition. Subscriptions have revolutionized music distribution - those unable to adapt will find themselves left behind. Therefore, companies should keep an eye on subscription growth when formulating their business strategies into 2022 and beyond.
Music streaming company Anghami, headquartered in Abu Dhabi, has seen strong revenues and paid subscriber growth for the year 2022. Their revenue reached a record USD 48.1 million, an increase of 35.6 percent from the prior year. Furthermore, there was significant growth in music streams and active users as well.
In 2022, the company reported a total of 1.52 million paid subscribers - an increase of 21% year-on-year; active users reached 19 million, an increase of 46 percent over the prior year. Furthermore, Spotlight Events experienced significant growth in its live music subsidiary revenues as well.
Apple is leading a campaign to promote transparency and accuracy in digital metadata, joining forces with trade bodies Digital Media Association (DiMA) and Songwriters of North America (SONA) on an initiative called "Credits Due." This program seeks to give songwriters accurate information regarding their performance and recording rights for songs, helping them avoid overdue fees or other complications that can arise.
Streaming services are experiencing rising demand for their content, particularly among younger generations. In the UK, for instance, streaming has become the primary source of audio listening time among 15-34 year olds, according to a report by regulator Ofcom.
China's Tencent Music Entertainment reported strong subscription revenues and paying music users in its first quarter of 2022. In its unaudited financial results for these first three months of 2022, Tencent Music Entertainment recorded total subscription revenue of USD $315 million, an increase of 17.6% year-over-year (YoY).
Overall revenue fell 15.1% compared with the fourth quarter of 2021, and publishing and merchandising revenue were lower in Q1 2022 than they had been previously due primarily to lower revenues from social entertainment - which has become a loss leader for Tencent Music Entertainment.
Though the overall music business remained positive through most of 2022, investors should be aware that streaming growth may slow down. This is especially pertinent to parent companies of record labels and publishers.
Anghami's strong paid subscriber growth to 1.52 million subscribers in 2022 contributed to the company's impressive financial performance for 2022. Total revenue increased 35.6% during this period despite an unfavorable foreign currency exchange rate impact. Streaming was an important source of revenue for Anghami, with Arabic music accounting for 60% of all streams.
Anghami continued its investment in content production, advertising and payment infrastructure during this period. Its newly launched verticals include Anghami Studios - a full-fledged content production arm; Vibe Music Arabia - a joint venture with Sony Music; and Spotlight Live - a music event management business.
Anghami's active user base grew 46 percent year-on-year to 19.5 million, driven by their collaboration with Egyptian artist Amr Diab. Additionally, Anghami launched their Sound of Saudi competition on TikTok which garnered more than 390 million views and 25,000 submissions.
In addition to streaming, Anghami continues to be an influential force in album sales throughout the Middle East and North Africa. Its expanding roster of local and regional artists accounted for more than one-third of Anghami's overall album sales in 2022, with new releases fueling significant increases across all formats.
In 2022, the Group's overall royalty receipts increased 12.4% to US $250.8 million, an impressive leap over the prior year. Furthermore, distributions to members increased 10.1% year-over-year to almost $214 million.
With these developments in mind, Anghami reiterated its guidance for profitability in 2023 by improving efficiency. It expects to release audited full year 2022 financial results by April 15th, working closely with Grant Thornton as its auditor.
Anghami has the financial strength to take advantage of the current favorable interest rate environment in the Middle East and North Africa. The Company's cost of risk remains within guidance at 108 bps, with a steady mix of corporate and retail loans supported by strong sovereign repayments.
Anghami remains committed to its long-term growth strategy, investing in consumer business, content creation, advertising and payment infrastructure. Furthermore, the company plans on expanding its business verticals by launching Anghami Studios - a full music content production arm; Vibe Music Arabia - an Arab joint venture with Sony Music; and Spotlight Events - a music event management business.