- Ghana's music industry exploited by Caller Ring Back Tones (CRBT)
- Telecom companies take 70% of revenue, leaving artists with 15%
- Industry stakeholders demand fair revenue sharing, better compensation
In the dynamic landscape of music, where artistry meets commerce, Caller Ring Back Tones (CRBT) have emerged as a promising avenue for artists to monetize their work. However, beneath the surface of this seemingly beneficial development lies a troubling reality that has turned what should be a boon for musicians into a cycle of exploitation.
CRBT allows mobile phone users to customize their calling experience by replacing standard ringing tones with their favorite tracks. This service has gained significant popularity worldwide, presenting a new revenue stream for musicians. Despite the potential for profit, the actual outcome has been far less harmonious.
Globally, CRBT services generate staggering revenue, particularly in markets like India and China, where mobile phone usage is high. Recent projections indicate continued growth in the global CRBT market, with telecommunications companies reaping the benefits. However, while these corporations report soaring profits, many artists are left struggling to survive on minimal returns.
The Ghanaian Context: Exploitation in the CRBT Market
In Ghana, the CRBT market presents significant potential, bolstered by a youthful population and widespread mobile device usage. Yet, the revenue-sharing model established by telecom companies has proven detrimental to artists. Typically, when a caller selects a CRBT, the telecom company retains 70% of the revenue, while the remaining 30% goes to aggregators, who act as intermediaries. These aggregators then take an average of 50%, leaving artists with a mere 15% of the original revenue. This meager compensation is further diminished by taxation.
The harsh reality is that many artists invest considerable time and effort into their music, only to receive a fraction of what they deserve. This inequitable model jeopardizes the health of the music industry in Ghana.
Missing Payments and Unmet Rights
As the CRBT market thrives, an urgent question arises: why aren’t telecommunications companies compensating artists for the performance rights of their creations? Reports indicate that some networks generate around 3 million Ghana Cedis monthly—amounting to 36 million Ghana Cedis annually—yet musicians, producers, and arrangers see little of this income. The contrast is stark when compared to the previous blank levies, which garnered just 2.6 million Ghana Cedis at their peak a decade ago. This disparity highlights the need for artists to unite and advocate for better compensation. Musicians must negotiate assertively for their rightful earnings and demand that telecom companies acknowledge their contributions.
Towards a Fairer Future
Telecommunications companies must reevaluate their revenue-sharing practices. They possess the power to implement a more equitable model that compensates artists fairly for their work. By revisiting their distribution strategies, they can cultivate a thriving music scene rather than one solely designed to fill their coffers.
Organizations like GHAMRO (Ghana Music Rights Organization), MUSIGA (Musicians Union of Ghana), and GAPI (Ghana Association of Phonographic Industry) must step up to advocate for artists’ rights. It is crucial for musicians to band together and demand transparency in the revenue-sharing process. The collective power of artists, producers, and industry stakeholders can influence telecom companies to reconsider their revenue models. While change may not occur overnight, speaking up is the first crucial step.
A reformed CRBT model would benefit not only artists but also the broader health of the Ghanaian music industry. Fair compensation encourages the creation of high-quality music, leading to a richer cultural landscape. Additionally, a flourishing music scene can positively impact the economy, attracting tourism and creating job opportunities.
The time has come for stakeholders in the Ghanaian music industry to demand their rights. The melodies that resonate through our airwaves should not transform into burdens for talented artists. It is time for a symphony of change.
While CRBT offers a glimmer of hope for musicians, it has largely become a system that undermines their potential earnings. As telecommunications companies enjoy significant profits, artists are left to navigate the consequences of an unjust revenue-sharing model. It is imperative for all parties—telecom companies, aggregators, and artists—to collaborate in creating a more equitable future.
The music industry in Ghana deserves better, and so do the passionate individuals who invest their hearts and souls into every note. Let’s turn those ringing curses back into golden melodies.
About the Author
Richmond Adu-Poku brings over 25 years of experience in the music industry, blending his expertise in writing, music, and entrepreneurship. He serves as the General Secretary of the Ghana Association of the Phonographic Industry (GAPI) and is the CEO of Ghana Music Live. Additionally, Richmond is a sought-after consultant for key industry players, including MUSIGA. Alongside his creative roles, he works full-time as a business consultant.
