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Bon Eye, a P Unit member and Director at Decimal Records, has outlined reasons as to why a majority of Kenyan music record labels struggle to exist. The majority of Kenyan record labels have been closing shops just as fast as they emerged, with a good number not surviving past five years. “Many Kenyan labels start with insufficient funding, mostly self-funded, making them vulnerable to market fluctuations. Sustained investment for artist development, marketing, and distribution is often lacking.” Bon Eye says. The legend who celebrated his 47th birthday this week also added that the lack of policies and laws to deal with content piracy is another reason Kenyan record labels struggle to become successful businesses. “Rampant piracy significantly reduces potential revenue. Weak enforcement of copyright laws in the country makes it difficult to protect intellectual property.” He added. Another problem is that a majority of record label owners lack the knowledge and experience to run labels. “Some labels lack formal business structures, contracts, and financial management, leading to instability. Many owners of Record Labels in Kenya open them without adequate knowledge until they realize it's expensive and requires a lot of knowledge and financial resources to run them.” He says. But there is also the shift to digital streaming, which Bon Eye argues isn’t favoring the Kenyan market. “The shift to digital streaming and the rise of independent artists has disrupted traditional label models. While live shows are a significant income source, they are often inconsistent. Also, Most labels fail to provide comprehensive artist development, including branding, marketing, and long-term career planning. Many labels prioritize quick returns over long-term artist development, which can hinder sustainable growth.” Attracting investors is yet another challenge that Kenyan Record labels have to contend with. “There is also the issue of Return on Investment (ROI). Compared to larger markets, Kenya's music market is relatively small, limiting potential revenue. Producing high-quality music videos and recordings can be expensive, and returns are not always guaranteed; thus, attracting an investor becomes tricky because any investor would love to be guaranteed a return.” Lack of data, as is the case with other established markets like South Africa and Nigeria, is yet another pitfall. “Most labels struggle to reach a wide audience, both locally and internationally. The absence of reliable data on music consumption makes it difficult to make informed marketing and investment decisions.
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