Insyte Weekly: Offline Edtech Solutions, Mobile Gaming Trends and More

This was an interesting week in the business world. Here’s a breakdown of some of the week’s top stories.

Media & Entertainment

As reported by Jem Aswad Universal Music Group and Spotify have signed new multi-year agreements covering recorded music and publishing, aiming to support artist and songwriter success. While specific terms remain undisclosed, sources confirm that the deal improves some aspects of Spotify’s controversial audiobook-music bundling model, which had previously led to reduced mechanical royalties for songwriters and legal pushback from the National Music Publishers Association. Although the agreement does not fully reverse these reductions, it introduces better economic terms, likely influenced by Universal Music Publishing CEO Jody Gerson, a vocal critic of the original bundling model. Spotify stated that while the bundle remains, the new deal includes adjustments for broader rights and differentiated treatment of music and non-music content.

According to Rachel Kaser, Sensor Tower’s latest report on mobile gaming trends for early 2025 highlights a positive year-over-year growth in in-app purchase (IAP) revenue for the first time since 2021, despite a 6% decline in downloads. This suggests players are spending more time in existing game ecosystems rather than exploring new titles. The report also reveals a shift in market dynamics, with fewer new games breaking into the top ranks and core titles dominating player engagement. Strategy games saw a 16% increase in IAP revenue, accounting for 21% of total global consumer spending, while simulation and puzzle games led in downloads. The rise of hybrid casual games, which blend hypercasual gameplay with deeper progression systems and diverse monetization strategies, has made them more resilient to market fluctuations. Mobile gaming revenue reached $80.9 billion in 2024, with strategy titles leading in spending, shooters like Free Fire driving download growth, and casino games such as Monopoly Go! excelling in IAP revenue.

Edtech

As reported by Mubashar, Egyptian edtech company Eyouth has partnered with Singapore-based consultancy EDT& Partners to launch a $6 million initiative aimed at developing digital skills for one million youth across Africa and the Middle East. The program, set to begin in February 2025, will provide training in AI, programming, data analysis, digital marketing, and modern pedagogy for individuals aged 15 to 35. It will integrate Eyouth’s skills development platform with EDT& Partners’ advanced educational technologies to address the region’s digital skills gap, which is part of a global $2.5 trillion shortfall. Additionally, the initiative will offer financial support to qualified educators. Industry leaders emphasize that bridging this gap is crucial for enhancing the MENA region’s competitiveness and innovation, especially as the world is projected to need 44 million more teachers by 2030, including 4.3 million in North Africa and West Asia.

The rapid rise of affordable AI tools is being embraced globally, even as governments struggle to regulate them. In Africa, where internet access remains limited, interest in AI is growing, with educators in the DRC noting both its potential and its risks, particularly in spreading misinformation according to the UN. A major concern is that AI development is concentrated in Silicon Valley, leading to biases that disadvantage marginalized groups. To address this, the UN advocates for expanding the developer talent pool, particularly in Africa, where EdTech startups are using AI to enhance education in local languages. However, there is often a disconnect between these startups and public education systems. Governments like Côte d’Ivoire are working to integrate AI into education while ensuring data protection and minimizing biases. Strengthening local AI development and digital literacy is crucial for Africa to fully harness AI’s benefits.

As reported by Bizcommunity, Educational inequality remains a pressing issue in South Africa, particularly in rural areas where reliable internet access is scarce. While AI-driven learning tools and online platforms gain popularity, many schools lack the connectivity to benefit from these innovations. Offline edtech solutions, such as the Edukite Learning app, are emerging as powerful alternatives, ensuring students continue learning despite infrastructural challenges. Over the past two years, more than 500 schools in two underperforming provinces have integrated Edukite’s offline multimedia learning tools with the national CAPS curriculum. The impact has been significant: the 2024 matric pass rate in these provinces rose by 8.09%, compared to 3.87% in other regions. In key subjects like mathematics, the pass rate increased by 8.14% (compared to 5.27% elsewhere), while physical sciences saw a 4.84% improvement, in contrast to a 1.46% decline in other provinces.

Fintech

According to Tyler Pathe, Climate fintech Zero has launched its sustainability-focused money app alongside a Crowdcube campaign seeking £8.3 million in pre-money undiluted valuation. Founded by Richard Theo, who previously launched Wealthify and ActiveQuote, Zero introduces its GreenScore feature, which scores the carbon footprint of transactions to help users engage with their sustainability. Powered by Doconomy and partnered with ClearBank and Marqeta, the app offers personal accounts and debit cards with a focus on sustainable spending. The fintech's Crowdcube campaign has garnered interest from over 600 early investors and is expected to go privately live soon, with more features in development.

Tourism

According to Kathryn Armstrong, New Zealand has relaxed its visa requirements to attract digital nomads—people who work remotely while travelling—hoping to boost its tourism sector amidst the economic recession. Visitors can now work remotely for foreign employers for up to 90 days on a visitor visa, with the possibility of paying resident's tax after this period. The change applies to all visitor visas, including those for tourists and those visiting family. However, only remote work based overseas is allowed, and those needing to work in New Zealand must obtain appropriate visas. This move aims to attract skilled workers, who won't compete for local jobs, and stimulate the economy by encouraging longer stays and increased spending. New Zealand joins other countries offering digital nomad visas, such as Japan, South Korea, and Portugal, following the shift toward remote work accelerated by the pandemic.

Retail

As reported by Luke Fraser, in December 2024, South Africa experienced a surge in consumer spending, with retailers collectively earning nearly R88 billion, driven by key holidays. BankservAfrica data showed that consumers prioritized essentials like food, transport, and necessities, with grocery stores and fuel purchases leading the spending categories. The average card spend was R588, while one shopper made an extravagant R175,000 purchase at a jewellery store. Cash orders, processed through BankservAfrica's Integrated Cash Management Service (ICMS), also showed a significant rise, totalling R87.7 billion, a 4% increase from the previous year, with peaks on the 2nd, 13th, and 27th December as people prepared for the holidays and New Year’s celebrations.

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