Sarz Analyzes The Actual Revenue Generated From Streaming

Veteran Nigerian producer Sarz, born Osabuohien Osaretin, recently discussed an often-overlooked aspect of the music industry: the financial dynamics behind streaming.

In a conversation on the Afropolitan podcast, Sarz addressed streaming payouts, marketing expenses, and the realities of working in the current music landscape.

He illustrated his point with a straightforward comparison:

“A million streams from the United States generates roughly $3000-$5000. In contrast, that same number of streams from Nigeria might yield about $300-$500. However, promoting a song in Nigeria can be just as costly as it is abroad,”

he noted.

This indicates that while the local promotional effort is comparable, the financial returns are significantly lower.

Sarz attributed this gap to economic factors. Listeners in more developed countries generally pay higher subscription fees due to stronger economies.

In Nigeria, while there is a deep appreciation for music, the issue of disposable income poses a challenge. Many listeners cannot afford premium streaming subscriptions, which diminishes the monetary value of streams from that market.

He also revealed a notable point:

“It’s interesting to mention, but I haven’t received any residual income from my music in Nigeria. As a producer, we rely on the initial payments from artists for our work.”

Historically, especially before the rise of Afrobeats on the global stage, producers often relied on upfront payments, with additional earnings being left to the artists’ discretion.

“For a long time, before Afrobeats gained international recognition, producers often found themselves dependent on artists for further compensation. If artists deemed them important enough to pay extra after initial fees, that was what determined their income.”

Instead of expressing frustration, Sarz opted to adapt.

“I don’t think my future is reliant on anyone else. I can’t fault myself for my circumstances in Nigeria. I must find solutions, so it’s essential to explore ways to succeed.”

This approach led him to diversify his efforts beyond mere production.

“This motivated me to create my own music, engage in DJing, explore various opportunities, and even collaborate on albums and sign artists. One cannot restrict themselves to being just a behind-the-scenes contributor here; a broader skill set is essential for success.”

Looking to the future, Sarz feels that economic improvement is crucial.

“We [Nigerian entertainers and executives] await advancements in the country’s overall state to foster broader developments.

“I believe we’ve achieved a lot given our available resources while facing numerous challenges.

“People are streaming music, but those who cannot afford it are affected by their financial limitations. Those who can listen to music despite the economic constraints highlight a significant issue.”

His overarching message is straightforward: the talent, audience, and enthusiasm are present, but an economic framework that benefits both creators and consumers is lacking.

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