StarNews Mobile, an African-centric mobile video network, has successfully secured a $3 million pre-Series A funding. Established as a platform for African content creators, StarNews provides a unique opportunity for monetization through its subscription model. The platform currently caters to six African nations, including its birthplace Cameroon, as well as Nigeria, Ghana, Congo, Benin, and Ivory Coast.
The brainchild of CEO Guy Kamgaing, who launched the venture in 2017, StarNews’s foundations lie in Kamgaing’s rich 10-year background in content monetization. With significant emphasis on Value-Added Services (VAS), his insights into content monetization paved the way for StarNews’s inception.
The five-year journey of StarNews has seen a firm commitment to facilitating revenue avenues for African content creators. In partnership with telecom giants MTN and Orange, StarNews addresses the challenges content creators face due to constraints on existing streaming platforms. Their model connects content creators to mobile users who might otherwise miss out due to the high costs of mobile data or the lack of localized services. The vision is simple: provide both content creators and consumers a beneficial platform.
According to Kamgaing, traditional platforms in Africa had overlooked the monetization potential. He observed that numerous creators were unable to monetize their content on platforms like YouTube. Recognizing this gap, he leveraged his relationship with telecom companies to support creators in monetizing their work.
Indeed, mobile operators are key players in Africa’s media landscape, holding unparalleled distribution capabilities. Drawing a parallel to global tech leaders, Kamgaing likens Orange to Apple and MTN to Google in the African context.
The platform’s success story features a robust subscriber base of over 4 million through its collaborations with MTN and Orange. Having exited South Africa due to strategic differences with MTN, StarNews still enjoys the active participation of over 120 content creators. With funding amounting to nearly $8 million from diverse investors, including Snap’s Yellow Accelerator program and Investisseurs & Partenaires (I&P), StarNews has been on a growth trajectory.
A closer look at StarNews’s structure reveals channels dedicated to individual creators. The company not only provides monetary aid to these creators but also assists them in content creation and digital strategy. The company’s emphasis on telecom collaborations has streamlined user onboarding, offering content ranging from hyperlocal topics like motorbike taxis in Cameroon to genre-specific shows like the African Cup of Nations.
In 2021, StarNews’s partnership with telecom operators, especially for the African Cup of Nations, led to the acquisition of 600,000 new users. Leveraging such partnerships, the platform sponsored concerts and once even drew 500,000 subscribers by offering an opportunity to attend a concert by Fally Ipupa.
The synergy of telecoms and content creators creates a powerful dynamic, as highlighted by Kamgaing. He believes that while production is crucial, distribution and monetization remain paramount. With StarNews, the goal is to control all three facets at a grassroots level.
Kamgaing also shed light on the platform’s performance metrics, emphasizing Nigeria’s high retention rates. StarNews’s internal metric, the billing rate, highlights a threefold higher performance in Nigeria compared to Francophone markets. Last year, the platform disbursed $1 million to content creators, with a monthly average payout of approximately $70,000.
The recent capital influx is a testament to the potential of Africa’s creator economy. With StarNews at the helm, there’s a promise of better support for creators and enhanced payouts. Kamgaing envisions StarNews in 11 markets by the next year.
Investment interest has also been observed from soccer celebrities affiliated with Excellence Sport Nation, underscoring their connection to StarNews’s mission.
Janngo Capital’s founder and executive chair, Fatoumata Bâ, expressed strong backing for StarNews, emphasizing the platform’s potential to tap into Africa’s burgeoning creative industry. Predictions indicate that by 2050, this industry might contribute up to $20 billion in GDP.
For Aurelien Tchouameni’s spokesperson and investment advisor, Fernand Tchouameni, StarNews holds a personal resonance. He envisions it as a bridge for the African diaspora, echoing the sentiments of many who believe in the platform’s promise to tell the authentic African story.
