Poetic Beats: A Business Model for a South African Based Record Label and Entertainment Consultancy

Poetic Beats: A Business Model for a South African Based Record Label and Entertainment Consultancy

Erryn Gracey

Abstract

South Africa is known to be one of the most influential countries on the continent of Africa and is seen as a cultural hub across the continent. It reigns as the most prominent music market on the continent and is home to some of the biggest names in African music. However, over the last ten years, the scene in South Africa has declined, and opportunities are reducing. In 2011, local music made up 50% of the country’s music scene, yet in 2022 it sits at less than a quarter. This year Music Africa reported that the monthly total music revenue is €8 812 500 a month, but professional musicians earn an average of €562.5 a month. With the average cost of living in Johannesburg and Cape Town sitting at €2000 a month, musicians are not earning enough to build a sustainable career. The declining market is complex but is primarily due to poor management from collective agencies, a lack of resources, and a lack of education that allows an industry to thrive. Due to the lack of resources, artists constantly need guidance and often become a ""Jack of All Trades"". Their vast skills include working in and mastering both musicianship and performance, PR & Marketing, and production. In essence, they also become their management team and label service. While some musicians prefer to have complete autonomy over their business, many are looking for the guidance that Poetic Beats will provide. Poetic Beats is a Record Label and Entertainment Consultancy, providing artists with the resources they have been lacking and, if they so wish, a management team to handle bookings, marketing, promotions, A&R services, and specific legal affairs. Due to South Africa's unique socio-economic climate and available resources, we have a fundamental understanding that the models of music businesses need to look different from global business models. Perhaps South African musicians need a ‘one-stop-shop’ to build their careers. Below is the business model for Poetic Beats as a record label and an entertainment consultancy. By following this model, we believe we can build a business that benefits South African musicians and cements South Africa as an emerging market whose musicians can be consumed globally.

Publication Date

7-1-2022

Campus

Valencia (Spain) Campus

Poetic Beats: A Business Model for a South African Based Record Label and Entertainment Consultancy

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