By Nco Dube | 20 October 2025

The music sector in South Africa is not a cultural sideline; it is an economic engine. Over the last decade the mechanics of how musicians earn, how jobs are created and how sound is distributed have shifted in ways that demand policy attention, strategic investment and cultural imagination. This is an attempt to map that change: where revenue now comes from, how employment is shaped, how digital platforms have rewired distribution, and which policy and market moves will matter next.

Revenue streams have been digitised

Streaming is now the dominant source of music income worldwide, and South African artists are feeling the shift. Globally, streaming accounts for roughly 70% of recorded-music revenue, a structural realignment that has turned playlists into profit centres for platforms and into complex royalty ecosystems for creators. In South Africa this change is visible: domestic artists collected about R400 million in streaming royalties in 2024, a milestone that signals both growth and new dependency on digital flows.

Digital income is expanding fast, the sector recorded a 55% rise in digital revenues since 2023, yet that growth coexists with long-running grievances about distribution of value. Platform payouts, per-stream rates and opaque splits frustrate artists and managers, and piracy continues to erode potential earnings. Beyond streaming, significant income streams persist: performance rights, mechanical rights, sync licences for film and TV, merchandise sales and brand sponsorships all complement streaming receipts, and live shows remain a key source of cash through ticketing and VIP packages.

Artists now pursue hybrid revenue models: streaming and radio exposure for reach, sync and licensing for lump-sum returns, merchandise and brand deals for margin, and live performance for immediate cashflow. That diversification is essential if creators are to translate plays into sustainable livelihoods.

Employment and the industry’s systemic contribution

Music is a job-rich sector. The industry supports a wide ecosystem of professionals including performers, producers, sound engineers, event organisers, promoters, A&R teams and technical crews and that footprint matters in macroeconomic terms. Official data point to more than 300 000 people working either directly or indirectly in the music economy in South Africa, underlining the sector’s significance to employment and skills development.

The sector’s linkage to tourism and events is material: music festivals, touring circuits and cultural events feed hotels, transport and hospitality; the music-tourism nexus contributes to GDP through visitor spend and regional regeneration. Meanwhile, the digital transition has created new occupations namely, data analysts, digital marketers, playlist curators and platform managers extending employment into technology and creative industries.

But raw job numbers mask fragility. Many roles remain informal, gig-based or short-term; the pandemic exposed how quickly income streams can vanish for freelancers. To stabilise employment the sector needs sustained investment in training, social protections tailored to creative labour and incentives that convert one-off successes into longer-term career pathways.

Platforms, piracy and the new distribution logic

Digital platforms have democratised access and amplified reach, but they have also concentrated bargaining power. Major global services dominate distribution, while local platforms and initiatives can struggle to secure the same visibility or backend transparency. Spotify’s transparency moves and similar reporting efforts are important steps, but they do not by themselves rebalance power or ensure fair remuneration for all stakeholders.

Piracy and unauthorised copying remain persistent leakages that depress creators’ incomes; effective enforcement and public education are required alongside platform accountability to reduce loss of value. Emerging technologies such as blockchain offer opportunities to streamline rights management and speed payments, while analytics give creators real-time insight into listener behaviour, information that can be converted into smarter touring routes, targeted merchandising and more efficient marketing spend.

A pragmatic national approach should incentivise local platforms, support interoperable rights registries and lower barriers for artists to monetise directly. Platforms that keep a greater share of value within local economies will help retain revenue that would otherwise flow offshore.

Future trends and policy levers

The next horizon blends technology and policy. AI is already reshaping composition and production workflows; virtual reality will transform the concert experience; and pan-African trade under AfCFTA can open new markets for South African music. Policy tools that will matter include: content quotas to ensure local visibility, tax credits or incentives for production and touring, and fair-trade licensing frameworks that protect creators’ bargaining power in transnational deals.

A requirement for stronger local content on public platforms and broadcasters can create demand-driven ecosystems for homegrown artists, while public-private partnerships can scale skills development in recording, production and music business management. Targeted tax relief for creative start-ups and incentives for festival investment can attract capital to the live sector and its supply chains.

Crucially, governance of rights must improve. Clear, interoperable rights registries, quicker payment cycles and more transparent reporting from platforms will reduce leakage and build trust between artists, publishers and intermediaries. Investment in legal frameworks that properly quantify and enforce performance and mechanical rights will ensure that the benefits of growth are distributed beyond a small elite.

Conclusion

South Africa’s music sector stands at an inflection point: rapid digitisation has amplified opportunity but also exposed creators to new forms of precarity. If the country is serious about cultural industries as engines of social and economic development, it must combine smarter regulation, targeted incentives and investment in skills with a commitment to keep more of the value chain local. Music has always been a ledger of identity and a medium of joy; if we treat it as the economic asset it is, we will also ensure that the artists and the workers who make the sound receive a fair share of its value.

(Dube is a noted Political Economist, Businessperson, and Social Commentator whose insights are regularly featured on Ukhozi FM and in various newspapers. For further reading and perspectives, visit: http://www.ncodube.blog)