In a significant development on Monday (Dec. 9), Sony Music took the decision to pull its extensive catalog from the streaming service Boomplay. This move comes as a result of late royalty payments, as confirmed by Billboard. The situation has raised concerns within the music industry and has implications for both Sony Music and Boomplay.

Unraveling the Royalty Tangle between Sony Music and Boomplay

Background and Initial Reports

Sony's withdrawal was first reported by Pulse NG. A representative for Sony Music declined to comment on the matter, leaving many in the industry curious about the details. Meanwhile, several other prominent labels and distributors have also come forward to confirm that they have not received recent royalty payments from Boomplay. A monthly payment report published by the distributor Symphonic on Dec. 2 highlights that payments from Boomplay are excluded from April 2023 to September 2024 due to delays in receiving statements and/or payments from these partners. This indicates a broader issue within the Boomplay payment system.

Boomplay's journey in the music streaming industry has been marked by significant growth and strategic partnerships. In 2019, it announced raising $20 million in Series A funding with the aim of becoming the number one player in the African music ecosystem. CEO Joe He expressed the unique challenges of the African music industry, where there are many independent musicians and small labels, making catalog building a time-consuming process.

Historical Partnerships and Milestones

Boomplay reached its first licensing agreement with Universal Music Group in 2018, followed by deals with Sony Music and Warner Music Group the following year. In 2021, it forged an agreement with the independent label organization Merlin. These partnerships have played a crucial role in shaping Boomplay's position in the market. Additionally, in October 2021, Boomplay announced that its streams would count towards Billboard's charts, further solidifying its place in the industry.

Boomplay's CEO, Joe He, had ambitious plans for the platform. In 2020, he told Billboard that he believed the service could grow its user base in Africa to 350 million, highlighting the huge potential of the African market. As of September 2023, the platform claims to have 98 million monthly active users on the continent, demonstrating its growth and popularity.

Comparisons with Other Streaming Services

Boomplay is not the first streaming service to face challenges with timely royalty payments. In 2021, TIDAL was sued, and the complaint revealed that the platform had $127 million in liabilities, mostly in the form of unpaid streaming fees to record labels. However, TIDAL CEO Jesse Dorogusker assured Billboard last year that the payment situation had been remedied. This comparison raises questions about the industry's approach to royalty payments and the need for better financial management among streaming services.

The situation between Sony Music and Boomplay serves as a reminder of the importance of timely royalty payments in the music industry. It also highlights the challenges faced by streaming services in managing their finances and ensuring fair compensation to artists and labels. As the music streaming landscape continues to evolve, it is crucial for all players to address these issues and find sustainable solutions.