The MTN-UduX Streaming Partnership

Gilbert Ekwugbe writes that the MTN-UduX streaming partnership boosts Davido and signals new direction for tech OG

For readers below a certain age, the term “BOGOF” probably evokes only blank stares. Ask anyone born before the mid-1990s what that term means however, and their eyes will light up as they recall a once-in-a-lifetime promotional campaign in the early 2000s when GSM technology was still exciting and new in Nigeria. MTN had taken what looked like a giant risk at the time to offer a free SIM card with every new SIM card purchase, hence the promotional term ‘Buy One Get One Free’ (BOGOF). The risk paid off spectacularly and the rest is history. If the BOGOF campaign now seems like a long time ago, that is probably because in the 20 odd intervening years since then, everything has changed.

That was a time when modern Nigerian music was in its embryonic phase and the concept of widespread internet access on cheap smartphones in Nigeria was entirely hypothetical. Back then, the boy who would someday become the pop megastar Davido, was a spotty preteen who probably did not realise how big a future he had ahead of him. Two decades and multiple hit records later on March 5, 2022 at London’s O2 Arena, Davido had one of the biggest nights of that future at the launch concert for his latest album “We Rise by Lifting Others.” Apart from the star-studded artist roster that included Yung Bleu, Patoranking, Mayorkun, Reekado Banks, Adekunle Gold, Zlatan, Teni, Tion Wayne, Pop Caan, Skibii and Ckay, the sheer size of the concert was emphasised by the massive number of people across Africa who streamed it live. This unprecedented reach was the result of MTN’s partnership with the livestreaming app uduX, which had the exclusive licence to stream the event. Launched in 2020, this partnership showcases a new frontier of MTN’s evolution from telecoms company to a “digital-first” company.

MTN and Entertainment: An Interlinked Growth Story

At every point over the 20-year love story between MTN and the Nigerian entertainment industry, the status quo has always looked permanent and unchanging to many. At the dawn of the GSM revolution, when the backbones of MTN’s offering were call and SMS services, few believed that the company’s interaction with entertainment could ever go beyond sponsoring a few shows. When the push toward mobile Internet took off in the late 2000s, fewer still believed that anyone in Nigeria would ever be able to make internet access and pricing accessible enough to disrupt the “buy my (hopefully non-pirated) CD for N100 and maybe come to my show” business model of Nigerian music at the time. 

Between 2010 and 2020, internet access, internet enabled devices and data packages became ubiquitous across Nigeria, due in no small part to MTN’s coverage and pricing decisions as the undisputed market leader. Once the primary challenge of basic telephony and at least 3G internet access had been solved, the opportunities for the music and entertainment industry within this new internet-first landscape quickly began to emerge. Out went the ubiquitous CD wallet and disc player, to be replaced by first mp3 files, and then by music and video streaming mobile apps. From practically zero as at 2002, the NCC put Nigeria’s total number of mobile internet users in 2021 at over 101 million – a humongous market opportunity for internet-first entertainment formats if there ever was one.

With this explosion in Nigerian and African usage of streaming services came a much-needed second wind for the business of music and entertainment in Nigeria. In addition to headline sponsorship of music platforms such as Project Fame and several standalone concerts and shows, MTN’s biggest success in promoting entertainment has been to provide the affordable web infrastructure that is creating new ecosystems to support and promote artists and creators every day. Musicians, comedians, web content creators, dancers, actors – everyone in the African entertainment ecosystem – have benefited from aggregating audiences and revenues. And this is where the uduX partnership referenced at the outset makes an interesting entry into the story.

uduX Partnership and MTN’s New Frontier

Recently, MTN unveiled its new logo and corporate identity as part of its stated mission to rebrand itself as a “digital-first” company. The move was widely expected because as is well known in corporate circles, a business that is not constantly innovating and moving forward is in fact moving backward by default. In an African market where it has already achieved near-universal voice, text and Internet coverage, what else is left to conquer in those spaces? Retaining a singular focus on fighting battles that have already been won has never been MTN’s style after all. For a company that has publicly stated that it aims to lead Africa’s progress into a digital future, the rebrand is exactly what to expect. 

Commenting on the partnership, Adia Sowho, the Chief Marketing Officer MTN, said, “MTN understands that to truly unlock the full benefits and potential of the digital world, people require a combination of progressive thinking and the right tools.  MTN aims to drive a positive shift in Africa and harness the continent’s boundless opportunity, and ultimately in delivering its vision, MTN looks to drive progress further through action and doing. Our commitment is to continuously evolve and explore innovative initiatives that provide value to all our stakeholders.”

The partnership with uduX, which brought Davido’s O2 concert to a livestreaming global audience is a cornerstone example of the company’s new direction. Recognising that its initial mission of solving telephone connectivity and internet access challenges across Africa has been concluded, MTN’s new focus is to leverage on the infrastructure it has built to launch and support new platforms and industries in the digital space as part of Ambition 2025. Under the partnership, MTN subscribers get access to discounted data packages for accessing content and streaming unlimited music on the uduX app. This means that African pop stars like Davido and Wizkid can now reach millions of their fans with real time live performances that they might not otherwise have been able to afford. This improves fan engagement and creates new opportunities for future artist income streams.

Speaking at the launch of the partnership in December 2020, the former MTN Nigeria Chief Digital Officer, Srinivas Rao said, “Our young customers are passionate about music. That is why we have consistently supported the development of the local music industry. We’ve partnered with uduX because we believe in their capacity to deliver high-quality, curated music from around the world, and contribute immensely to the continued growth of the music industry in Nigeria. “[…]This partnership reaffirms our commitment to supporting the growth of indigenous companies and content through active collaboration.”

When he made those comments little over a year ago, it might have seemed yet again, that MTN was setting its sights on a target that no one else could see or found achievable. Once again as it was in the 2000s, 2010s and at Wizkid’s live streamed “Made in Lagos” show in November 2021, the goal was achieved quietly and with minimum fuss. Or perhaps, not so quietly, as Davido’s fans across Africa watched him shut down London’s O2 Arena.