Music app Mdundo set to pay royalties to artists

Music distribution app Mdundo is set to pay royalties to musicians who use their service, just five months after launching.

The company says it will pay thousands of Kenyan Shillings in royalties to artists such as P-Unit, DNA, Abbas, Eric Wainaina, Alice Kamande, Juliani and Mbuvi, for songs downloaded in the past five months.

“We are very excited to announce today that we are now set to make our first payment. We aim to fund most of our downloads with different forms of branding and marketing from corporates to our rich and diverse database of users,” states Gustav Ericsson, CEO of Mdundo.

The company uses scratch cards as a means of music distribution. The artists are given a certain amount of scratch cards which they can distribute or sell during their shows, keeping 100 per cent of the sales funds.

Mdundo also enables users to download free music and still pay the artists royalties for download, making money from corporate sponsorship and advertising on the platform.

Band member of P-Unit and Mdundo brand ambassador Fraasha, said: “I think that this is one of the most innovative ways of selling music, and making our music easily to our fans. Above all it’s a good revenue stream for the artists.”

Ericsson also said the company is always looking for ways to generate revenue for the artists through the platform.

Mdundo partnered with Samsung Electronics East Africa by giving customers who purchase the Galaxy Music phone, to enjoy a five-day premium account-free on the platform.

Posted in: Startups

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