How telcos are exploiting musicians with Caller Ring Back Tones

In the bustling world of music, where creativity meets commerce, the advent of Caller Ring Back Tones (CRBT) has promised a new avenue for artists to monetize their work. But as the melodious tones fill the airwaves, a harsh reality lurks beneath the surface. What initially seemed like a boon for musicians has morphed into a maddening cycle of exploitation, turning their golden melodies into ringing curses.

CRBT allows mobile phone users to replace the standard ringing tone with a track of their choice when someone calls them. This service has gained immense popularity across the globe, offering a unique way for consumers to personalize their calling experience. For musicians, it opens a door to new revenue streams, theoretically turning every call into a potential profit. However, the reality is far less harmonious.

The global revenue from CRBT services is staggering. In markets like India and China, where mobile penetration is high, the earnings from CRBT have reached billions. According to recent reports, the global CRBT market is projected to grow, with the telecommunications giants cashing in. But while these companies report soaring profits, many artists are left grappling with the crumbs that fall from the table.

Hijacked Harmonies - The Ghana CRBT Story

In Ghana, the CRBT market holds significant potential. The proliferation of mobile devices and an increasingly youthful population create a ripe environment for this service. Yet, the revenue model adopted by telecommunications companies has turned this potential into a mirage. The companies, in their pursuit of profit, have established a biased revenue-sharing model that siphons off the majority of earnings from artistes.

Let’s break it down: when a caller selects a CRBT, the telecommunications company typically retains 70% of the revenue generated. The remaining 30% is handed over to aggregators, who act as intermediaries without whom an artiste’s cannot get unto the service. That 30% becomes the new 100%. These aggregators then take an average of 50% for their services, leaving artists with a meager 50% (15% of the original revenue) of the total revenue. And to add insult to injury, this amount is also subjected to taxation.

Imagine pouring your heart and soul into a song, only to receive a pittance for your efforts. This is the grim reality for many artistes in Ghana. No one should earn so little from their intellectual property, especially when their creations have the potential to resonate with millions. This lopsided model has dire consequences for the music industry in Ghana.

Lost in the Shuffle: The Missing Payments

As the CRBT market thrives, a glaring question arises: why aren't telecommunications companies compensating artists for the performance rights of their creations? While some networks report average earnings of around some 3 million Ghana Cedis a month—totaling an astounding 36 million Ghana Cedis annually—musicians, producers, and arrangers are left in the shadows, benefiting little from their own hard work. In stark contrast, the once-prominent blank levies, which garnered a meager 2.6 million Ghana Cedis at their peak a decade ago, pale in comparison to today's profits. This disparity raises the urgency for artists to unite and advocate for better deals. It’s time for musicians to negotiate assertively, demanding the rightful compensation for their craft and pushing telecom giants to step up and honor their contributions. The melodies that fuel the CRBT system deserve to flow back to the creators, turning the tide from exploitation to equity.

Ringing Right: The Path Forward

Telecommunications companies must take a hard look at their revenue-sharing practices. They have the power to implement a more equitable model that fairly compensates artists for their work. By re-evaluating their distribution strategies and ensuring a better revenue share for musicians, they can help cultivate a thriving music scene rather than one that merely exists to fill their coffers.

It is crucial for organizations like GHAMRO (Ghana Music Rights Organization), MUSIGA (Musicians Union of Ghana), and GAPI (Ghana Association of Phonographic Industry) to step up and advocate for fair treatment of artists. Musicians themselves need to unite and demand transparency and equity in the revenue-sharing process. Imagine the collective power of artists, producers, and industry stakeholders coming together to negotiate a better deal. By raising their voices, they can influence the telecommunications companies to rethink their revenue model. Change will not happen overnight, but the first step is speaking up.

A reformed CRBT model would not only benefit the artists but also enhance the overall health of the music industry in Ghana. By ensuring fair compensation, we encourage more artists to produce high-quality music, ultimately leading to a richer cultural landscape. Additionally, a thriving music scene can contribute significantly to the economy, attracting tourism and creating job opportunities. The time has come for the stakeholders in the Ghanaian music industry to demand what is rightfully theirs. The melodies that echo through our airwaves should not turn into curses that haunt our talented artists. It is time for a symphony of change.

The CRBT system, while offering a glimmer of hope for musicians, has largely transformed into a sham that undermines their potential earnings. As telecommunications companies rake in profits, artists are left to grapple with the consequences of a biased revenue-sharing model. It’s imperative for all parties involved—telecom companies, aggregators, and artists—to come together and forge a more equitable future. The music industry in Ghana deserves better, and so do the talented individuals who pour their hearts into every note. Let’s turn those ringing curses back into golden melodies.