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How telecom companies use Caller Ring Back Tones to defraud musicians

In the fast-paced music industry, where artistic expression and business acumen collide, Caller Ring Back Tones (CRBT) have opened up new revenue streams for musicians.

But underneath the surface of the catchy tunes that permeate the air, there is a terrible reality. What at once appeared to be a blessing for musicians has evolved into an oppressive loop of exploitation, transforming their beautiful songs into deafening omens.

With CRBT, users of mobile phones can have their preferred tune play when someone calls instead of the normal ring tone. Because it provides a distinctive means for customers to customize their calling experience, this service has become incredibly popular all around the world. It provides musicians with access to new sources of income, potentially making every call profitable. But the real world is much less harmonic.

The income generated by CRBT services worldwide is astounding. CRBT has made billions of dollars in highly mobile-penetrated economies like China and India.

Recent reports indicate that the worldwide CRBT market is expected to expand, with the big telecoms companies expected to benefit. But even as these businesses announce record profits, a lot of artists are left to pick up the crumbs from the table.

Hijacked Harmonies: The Story of Ghana’s CRBT

The CRBT market has a lot of promise in Ghana. An environment that is ideal for this service is created by the widespread use of mobile devices and the growing youth population. However, the revenue model that telecom corporations have chosen to employ has made this promise unreal. The firms have created a biased revenue-sharing model that steals the majority of artists’ profits in their quest of profit.

To put it another way, when a caller chooses a CRBT, the telecom firm usually keeps 70% of the money made. Aggregators receive the remaining 30%; these individuals serve as middlemen, without whom artists would not be able to access the service. The new 100% is that thirty percent. The artists receive a pitiful 50% (15% of the initial earnings) of the overall revenue after these aggregators charge an average of 50% for their services. To make matters worse, there is tax associated with this amount.

Imagine putting your entire being into a song and getting very little in return. This is the harsh truth that many Ghanaian artists must face. Nobody should be paid so little for their intellectual property, especially if millions of people could find value in what they have created. There are serious ramifications for Ghana’s music industry from this unbalanced paradigm.

Misplaced amid the Chaos: The Unaccounted-For Funds

With the growth of the CRBT industry, it begs the obvious question: Why don’t telecom corporations pay artists for the performance rights of their works? The average monthly salary reported by certain networks is approximately 3 million Ghana Cedis, which adds up to an astonishing 36 million Ghana Cedis annually. However, musicians, producers, and arrangers are mostly ignored and receive little credit for their labors. The revenues of today are nothing compared to the once-dominant blank levies, which at their peak a decade ago earned a pitiful 2.6 million Ghana Cedis. The need for artists to band together and push for better agreements is made more pressing by this difference. It’s time for musicians to get into aggressive negotiations, demanding fair recompense for their work and pressuring telecom behemoths to acknowledge their contributions. The songs that power the CRBT system should be returned to their authors in order to shift the focus from exploitation to equity.

Ringing Correct: The Way Ahead

Telecommunications firms need to examine their revenue-sharing policies closely. They have the authority to put into place a more just approach that pays artists appropriately for the work they do. They can contribute to the development of a vibrant music environment rather than one that only exists to line their own pockets by reconsidering their distribution tactics and making sure that musicians receive a larger portion of the proceeds.

The Ghana Music Rights Organization (GHAMRO), the Musicians Union of Ghana (MUSIGA), and the Ghana Association of Phonographic Industry (GAPI) must take the lead in promoting equitable treatment for artists.

It is imperative that musicians band together and demand fairness and openness in the revenue-sharing arrangement. Imagine the combined influence of producers, artists, and other industry participants in negotiating a better offer. They may force the telecom firms to reconsider their income model by speaking out. Though it won’t happen right away, speaking up is the first step.

In addition to helping artists, a revised CRBT model will improve the state of Ghana’s music sector as a whole. By guaranteeing just recompense, we inspire more musicians to create excellent music, which eventually results in a more diverse cultural environment. A strong music scene can also have a big economic impact by bringing in tourists and generating employment. It is now the appropriate moment for the parties involved in the Ghanaian music industry to assert their rightful claims. The songs that fill our ears shouldn’t become omens of doom for our gifted musicians. A change symphony is what’s needed.

Although it gives musicians some hope, the CRBT system has essentially become a scam that reduces their prospective income. The implications of a revenue-sharing scheme that is prejudiced are left to artists to deal with while telecom giants reap large profits. It is essential that the telecom companies, aggregators, and artists work together to create a more just future.

Both the Ghanaian music industry and the gifted musicians who put their all into every note deserve better. Let’s transform those loud obscenities back into melodies of gold.

Concerning the writer

Richmond Adu-Poku skillfully combines his talents in writing, music, and entrepreneurship with over 25 years of experience in the music industry. In addition to being the CEO of Ghana Music Live, he is the General Secretary of the Ghana Association of the Phonographic Industry (GAPI). Important industry participants, such as MUSIGA, seek Richmond’s advice on a regular basis. Besides his artistic duties, he is employed full-time as a business consultant.

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