South Africa’s largest and oldest independent label, Gallo Music Investments (GMI), in which superstar South African DJ Black Coffee acquired a significant interest last May, has snapped up a 45% stake in one of Africa’s biggest independent content aggregators, Content Connect Africa (CCA).
Black Coffee acquired the stake in the label last year via his investment holding company FlightMode Digital from Lebashe Investment Group for an undisclosed sum.
Gallo was purchased by Lebashe from Tiso Blackstar (formerly Johnnic Communications), in a deal valued at R75 million (approximately $4.3m).
GMI was incorporated into news and entertainment business Arena Holdings, which is 100% owned by Lebashe Investment Group.
According to a media release, the CCA and GMI partnership kicks off with the two entities partnering with artists on brand work, providing backend services for independent labels, in addition to developing and launching continental artists.
“We’ve had the same 10 or 15 artists dominate the last decade, this partnership provides us the capacity to develop faster by leveraging technology and the CCA relationships.”
Black Coffee
Black Coffee said: “We’ve had the same 10 or 15 artists dominate the last decade, this partnership provides us the capacity to develop faster by leveraging technology and the CCA relationships.
“We would like to see artists far more involved in the process and not be tied to the one size fits all deal structures.”
Simukayi Mukuna GMI
Simukayi Mukuna GMI Managing Director said: “We would like to see artists far more involved in the process and not be tied to the one size fits all deal structures.
“We want to develop solutions that are born from Africa, for Africa, to export to the world. Our approach is underpinned by an emphasis on the use of scalable digital tools that support the creative process.”
“We’re at the beginning of an industry revolution where African artists participate in structures to encourage new ways to monetise content.”
Antos Stella, CCA
CCA CEO Antos Stella said: “We’re at the beginning of an industry revolution where African artists participate in structures to encourage new ways to monetise content.
“CCA has a footprint across the continent as an aggregator to the continent’s major Telco’s as well as a pipeline of established and emerging artists that will benefit from Gallo and its shareholder Black Coffee’s experience and guidance towards an equitable transformation.”
In March, Sony Music Publishing South Africa signed Gallo Music Publishers to a worldwide agreement, excluding Africa.
In May 2020, , Sony Music Publishing (then Sony/ATV Music Publishing) South Africa and Content Connect Africa (CCA) entered into a strategic partnership.Music Business Worldwide
