Digital content services provider Cellulant yesterday announced a partnership with Stanbic Bank that will see artistes in their portfolio access bank loans from their Skiza ringtone royalties.
This will enable artistes to access direct capital from Stanbic Bank for their music project initiatives, property investments and personal finances.
Over 5,000 artistes are currently signed on Cellulant’s ringtone platform since it launched its Lipuka service in 2004, under Safaricom’s Skiza umbrella.
The royalties earned will guarantee the loans through a monthly check-off repayment plan being managed by Cellulant.
Currently, more than 11 digital content service providers work with Safaricom to both manage and collect revenues on their behalf. Skiza is East Africa’s largest digital content platform, with average revenues, month-on-month, estimated at Sh500 million.
Co-founder Ken Njoroge said: “The music content space has grown a lot. Unfortunately, musicians still struggle to turn their talents into a viable business.
"This agreement with Stanbic Bank is our way of showing our musicians that we are still invested in their success and that we understand the fundamentals of growing the music business in Kenya. Now is the time to invest in our musicians as the global music industry looks towards Africa for inspiration.”
Stanbic Bank head of personal banking Silpah Owich added: “We acknowledge that the royalties are a source of income and are now providing products based on this that will go a long way in enabling artistes to accelerate their music careers."