Mdundo, an Africa-focused music streaming service, is banking on more partnerships with telecommunication companies across Africa to grow its earnings and user base.
According to TechCrunch, the firm signed deals with MTN and Airtel in Nigeria, and Vodacom in Tanzania last year.
The firm disclosed that since it signed the deal, its user-base almost doubled, and it has added paying subscribers as a source of revenue.
Founder, Martin Nielsen, said, “This is a new revenue stream for us. When we listed the company in September 2020 we predicted that revenue from this revenue stream will account for 40% of revenue within a few years and this is still our forecast.”
According to the firm, its users can access music through USSD services on a bundled program (daily, weekly or monthly), and streaming service is accessible through its website or app.
It added that it has 13.8 million subscribers in 2021, and plans to grow its user base past 18 million by second quarter 2022.
It said paying subscribers accounted for 14 per cent of its 2021 earnings, as advertising revenue, from its free streaming service, grew by 63 per cent after setting up sales teams in Nigeria and Tanzania.
Nielsen added, “We’re rapidly growing our commercial operation outside our home-market, Kenya. This allows us to be closer to advertising clients across the continent and, thereby, create awareness and educate around our unique advertising formats and reach.”
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