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North Korea Launches Another Missile; Angela Merkel Surveys Growing Refugee Crisis; International Record Companies Investing Heavily Across Southern Africa. Aired 2-2:30a ET.

Aired April 24, 2016 - 02:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[02:00:00] NATALIE ALLEN, CNN ANCHOR: North Korea launches yet another missile. This time from a submarine and the South Korean military is on high alert. Major protest in Germany ahead of President Obama's arrival there, later Sunday, as family and friends hold a private memorial for Prince and hundreds continue to honor his memory outside his Minneapolis debate.

It's all ahead here on CNN Newsroom, thanks for joining us. We're live in Atlanta. I'm Natalie Allen.

North Korea is drawing the (inaudible) of the international community once again. They fired a ballistic missile from a submarine off the Korean Peninsula on Saturday. The capital Pyongyang is saying that Kim Jong-un oversaw the operation himself. It marks the latest from a long series of test over the past few months and it is bringing tensions on the peninsula to a boiling point.

Paula Hancocks has the view for us from Seoul.

(BEGIN VIDEO CLIP)

PAULA HANCOCKS, CNN CORRESPONDENT: This is something we know that North Korea has been working on for a long time. South Korea's Joint Chiefs of Staff saying that Pyongyang as fired what it believes to be a ballistic missile from a submarine.

Now, they say that it flew for about 30 kilometers or just under 20 miles, and in order for this type of launch from a submarine to be considered a success, it needs to fly for around 200 kilometers or just over 180 miles.

Now, clearly it felt postural to that but South Korean officials are not directly calling this a failure and with good reason, every test that North Korea does takes it one step closer to its goal. It always learns something no matter what the outcome and, of course, if in fact North Korea did manage to fire a ballistic missile from a submarine no matter how far it went, that would be significant.

One U.S. official telling us just how worrying this development is for Washington saying, "North Korea's sub launch capability has gone from a joke to something very serious." The U.S. is watching this very closely. And of course the timing is very interesting after noises with North Korea. 2016 has been very busy, it's been very tense, there's been out report is, H-bomb testing, January, a satellite launch, a claim of miniaturizing a nuclear warhead. And, of course, it just comes ahead of a very rare Congress, the word this party Congress in early May which hasn't been held since 1980 and more likely the use by leader Kim Jong-un to strengthen his power and his grip on power and, of course, South Korean officials believe that there could even be a fifth nuclear test ahead of that meeting.

Paula Hancocks, CNN Seoul.

(END VIDEO CLIP)

ALLEN: Well, earlier our Nick Parker spoke with a former U.S. Ambassador to South Korea. He explained why North Korea could be truly dangerous much sooner that initially thought possible.

(BEGIN VIDEO CLIP)

CHRISTOPHER HILL, FORMER U.S. AMBASSADOR TO SOUTH KOREA: I don't think they intend to have a ballistic missile fired from a sub only going 30 kilometers. That would be like having long range artillery fired from a sub. But it's hard to say when a test even an out and out failure or looks like an out and failure. It's hard to get a sense of what the scientist and what the technicians were really looking for.

So no, I don't consider this a failure. I consider this part of the sort of head over heels effort by the North Koreans to try to have a deliverable nuclear weapon and I think there's a great deal to worry about. And frankly speaking for people who said that, "Oh, we have time, we can use strategic patience. I don't think we have that time and I don't think we should be engaged in anything probably strategic patience.

NICK PARKER, CNN ANCHOR: And on that subject, as ambassador to South Korean leader of the six party talks of the U.S. delegation, you know the regional balance of power better than most. Do you think China is doing enough to try and calm and act as a calming influence to its ally North Korea?

HILL: Well, first of all, it's, you know, China has made no secret of the fact that they are very unhappy with the North Koreans. And one is I think significant about this whole wrap of test is that it's very clear that Kim Jong-un has no interest and really just doesn't care what the Chinese thinks, so that is quite a difference from when ' from my watch when Kim Jong-il for all of city's faults seemed to care a little about what China thought.

So, I think China and the United States are really in this both together, so rather than talk about what more China could do or what more the U.S. should do, I think the real question is what could they do together.

[02:04:59] And frankly speaking, I think China and the U.S. together to do a lot to this way, North Korea is doing this starting with the sanctions but also stepping up measures perhaps even direct counter measures to slow down these programs.

ALLEN: Will France is urging the E.U. to place there own things in the North Korea following this latest ballistic missile test. A foreign ministry spokes and said in a statement, "We call for a firm and united reaction from the international community so that North Korea stops its provocations".

The U.S. president is heading Germany in a few hours for trade talk with Chancellor Angela Merkel, ahead of Mr. Obama's arrival, thousands of people rally against a controversial U.S. trade plan with Europe.

It would create the world's largest free trade area, supporter say, will create more than one million jobs. The critics have a lot of concerns including whether it would give big U.S. corporations too much power.

SIMONE PETER, GERMAN PARTY CO-CHAIRMAN (through translation): Today, they are sending (inaudible) against Syria and CCIT, because we want to make sure democracy is not ousted from arbitration courts which bypass Democratic decision. We want to make sure that consumer, social and environmental standards are not obliterated and that communal public services are maintained. We don't want to be face with arbitration course and make decision just based on our own interest and the interest of big company rather than on a legal and Democratic basis.

(END VIDEO CLIP_

ALLEN: Mr. Obama's has been part of the Saturday talking with young Brits in London in a town hall event to connect one on one with people there in between high level talks with Prime Minister David Cameron.

The president was asked about gay rights, race issues in the U.S terrorism and Islamophobia.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: If we engage in Islamophobia, we are not only betraying what is essential to us but just as a practical matter, engaging in self-defeating behavior for it serious about terrorist. And so the language that we use, that tactics and approaches that we take, the respect that we show all people. Those are security matters, they are not - it's not just feel good, liberal, political correctness. It's a matter of what is that that we're fighting for and how are we're going win this fight against people who are so blocked off from the reality or others who don't get on agree with it. They'd be willing to blow themselves up and kill hundreds of people. It's the extreme of what - I was just talking to this gentleman about the inability to compromise and recognize difference and feel.

(END VIDEO CLIP)

ALLEN: President Obama talking with ease there in London and taking questions.

Angela Merkel is surveying the growing refugee crisis from the front line, the German Chancellor along with other E.U. leaders, the city just sprawling refugee camp of a Turkish Syrian borders Saturday, the trip comes in the criticism of the E.U.'s deal with Turkey, aim that steaming the migrants trying to head to Europe.

Our Nick Paton Walsh has the latest from Turkey.

(BEGIN VIDEO CLIP)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Along this is the about symbolism from German Chancellor Angela Merkel wanting to be seen, to be seen to be concern about the human rights and living conditions of Syrian refugees here on the Syrian, Turkish border area because of course she is the key worker - the deal between the European Union and Turkey that will see thousand many more refugee sent back from across the European Union here at Turkey in exchange for six billion euros of aid and assistance to Turkey and being with that brought and enduring refugee crisis here.

Now, she's over part of their tool here, a place called the immediate temporary shelter, that is frankly one of the better shelters provided for Syrian refugee's here. And it's not sure of how long term the problems being here. Nearly 500 of people living in that one shelter where in fact full now, so as one intended of it's number soon, I've never soon, I've never seen life outside of a refugee camp like that.

But the real concern is for the many others of 10.7 million Syrian refugees here in Turkey, don't have living conditions like that. Turkey space are problems way and excess of the 9 million also a Syrian refugees, the European Union has had to deal with since the summer but Angela Merkel here with Prime Minister Ahmet Davuto of Turkey to show that sense of cooperation to perhaps in some way endorsed the kind of conditions that Turkey can provide here. And it also it remind their self as well to that's the European Union has a part of this deal, agree to accept maybe about 70,000 potentially to Syrian refugee's the settlement across the European Union as well.

[02:10:02] But a lot of these about symbolism but Angela Merkel who face deep criticism at home perhaps pushing human rights in terms of freedom of speech here in Turkey to one side to post a good relations with the administration.

The president urged (inaudible) being showed to seeing here the concern about those Syrian refugees will be sent back with part of the deal that she was the key broker on.

But still the problem is here enduring the bans across the border terrifying and the potential threats of future refugees and amongst down the line.

Nick Paton Walsh, CNN.

(END VIDEO CLIP) ALLEN: A solar-powered airplane is one step closer to circling the globe. The Solar Impulse 2 has reached the U.S. State of California and schedule to land soon finishing the Pacific leg of its journey.

You're seeing video of the aircraft at the Golden Gate Bridge. It took off from Hawaii on Thursday after being stalled there for almost 10 months because of battery damage.

It begins it quest in Abu Dhabi over one year ago. There's one pilot in that plane and he's been flying it for about three days from Hawaii.

The remains of music legend Prince have now been cremated, family friend and band members held a private memorial service. His family has says has final rest in peace will not be revealed. Since Prince died on Thursday at his Minnesota home, fans had continued as you can see to gather outside.

Then on Saturday, family and friends of the musician gave admirers about one dozen of purple boxes with especial items inside.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What does in your box?

UNIDENTIFIED FEMALE: So I have just a look like a (inaudible), I'm just going to, you know, to keep to them but it's just a booklet and then for some reason, to me, this fits my personality so well.

UNIDENTIFIED MALE: Beautiful.

UNIDENTIFIED FEMALE: Yes, it is.

UNIDENTIFIED MALE: You open that for us, so that we can see it, there we go. And then what did you get in your box?

UNIDENTIFIED MALE: This is so amazing because you can certainly and think that good. I pursue body building and I pursue get a way with thing and for it's like a personal gift it seems like and it for him that - had give me a tank top, you know, it's just amazing.

(END VIDEO CLIP)

ALLEN: How sweet is that that the family gave out boxes to the fans, purple boxes. Thanks for watching I'm Natalie Allen.

CNN Marketplace Africa is next, you're watching CNN.

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[02:15:18] ZAIN ASHER, CNN CORRESPONDENT: Welcome to Market Place Africa. We have the biggest economic trends impacting the continent.

Now, this week, we're focus on the music industry. International record companies are investing heavily across to Southern Africa, partly because of the growth in the digital space. So walk with me over here so we can take a look at some of the numbers together.

The industry continues to the strongest overall in South Africa where price (inaudible) predict that can do spending over "music" will be $68 million by the end of this year. Now, that is below closely by Nigeria at $43 million for Kenya is a distant third at $18 million.

Now, the rise of digital sales in countries like Nigeria is being is being listed by growing broadband at smart phone penetration. Take a look here. You can actually see the spending on digital format, it include download, ring tones things like that present steadily since 2008 in Nigeria, at the same time, physical sales which you could see this are have steadily inclined.

By 2017, digital sales are expected to count for 67 percent of all music spending this was a huge opportunities for Nigeria. The issues such as piracy and artist compensation still must be addressed to continue growth.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: First Lady Michelle Obama.

ASHER: Every year since 1987, thousands of music industry members from all over the world gather in the U.S. state of Texas for the South by Southwest Music Conference.

This year, even President Barack Obama made an appearance. Then new artist get exposure.

The latest technology took place at the insiders discuss issues affecting the music industry.

UNIDENTIFIED MALE: Things have been gone a little fast.

(OFF-MIC)

KINKADE: For the first time, South by Southwest included a panel dedicated to Nigeria's music industry. It's the time of the times where country with an entertainment and media market were taking just the past $8 billion by 2019, that's according to price (inaudible).

Among the panelists is the general manager of Sony's recently formed music division in West Africa, it's the first major recording label to operate in Nigeria.

MICHAEL UGWU, SONY: If it's big thing to Sony, it's a big deal because you're saying we're taking this market seriously. Not just by oratory, not just by set out. We've case that confident is less get functional physical officers or the physical manager, warning the officials to West Africa.

KINKADE: Michael Ugwu has already signed several artists including one of Nigeria's most popular (Davido).

UGWU: Davido sales (inaudible) 60,000 to 70,000 people. You know, as soon as you get in Africa, you know, sounds and (inaudible) and that so we (inaudible). Well, actually not going to help him scale off his impart in musical scenes and actually create more in past building.

KINKADE: Not just (inaudible) comes one of Nigeria's most popular music sites, the owners who actually run this side from the United States says artist like Davido set Nigeria apart from the rest of the continent.

UNIDENTIFIED MALE: if you go to any of these countries, a lot of the music they play are Nigerian songs, so it's quite evident that out market, Nigerian market is the biggest in Africa. Illest (ph) artists are the Michael Jacksons of other countries in Africa.

KINKADE: Those artist included with Wizkid, (inaudible) and P-Square. They almost gain success and riches by delivering the upper bate (ph) sound Nigeria is know is for, that that is not the story for many artists in the country.

DT CUPPY, DJ AND PRODUCER: Well, as an artist, it is very challenging. You know, Nigeria does not have the infrastructure to be out, to give artist their royalty, to give artist the right publishing arrangement.

So artists are having to depend on things like endorsement and, you know, just shows two really sort of keep this creative going.

KINKADE: Pulling (inaudible), DJ Cuppy travels around the world and makes this (inaudible) with other international sounds. To send her report, coming to Nigeria's music industry.

DJ CUPPY: With the growing digital environment, artists are now becoming more informed in what they do. They are learning that actually, I should be getting world, I should have a publishing deal.

Actually, if I'm performing and should be paid for my performance, so people are also noticing that their skills and their talents is worth to pay.

[02:20:00] UGWU: Well, I think (inaudible) 100 percent moved up, so you don't ...

(Off-Mic)

KINKADE: Mobile phone companies create a huge revenue system for artist, Africa's largest telecommunications company also claims with the largest distributor of digital music, mainly because of caller ring back tones which are very popular in countries like Nigeria.

Revenues, the Nigerian artist from mobile music sales are reportedly about $150 million annually. That's according to Bloomberg (ph).

But Michael Ugwu says it will take more than money from telcos for the industry to continue growing.

UGWU: A lot of artists tend to write their own music. We haven't build up as an ecosystem some writers. So, you know, now it's about how do we actually make this thing work because, for me, you need song writers in the ecosystem as big as Beyonce is, she needs song writers. KINKADE: The Sony executive also has his prediction.

UGWU: I think five years from now, people can be paid a lot more from this industry, 100 percent and that's the trend. People (inaudible) music and they got to paid to that music it's going to be from being an (inaudible) world class quality looks like, international music.

KINKADE: Lynda Kinkade, CNN.

(END VIDEO CLIP)

ASHER: As Africa break through our Marketplace Africa. When we come back, we'll speak to the man who brought MTV to Africa, say why he's that contest is still king.

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ASHER: Welcome back everybody. Viacom is one of world's largest broadcast and cable company, so the precedence is about 180 countries, it's network include MTV, Nickelodeon and Comedy Central.

Last year, the company generated more than 13 billion dollars in revenue. In 2005, Viacom launch MTV based in Africa as it's first channel dedicated to the African market.

Alex Okosi lead that launch and is now the senior vice president and managing director of Viacom Africa. When he sat down with CNN Nick Parker, he spoke about the group work needed for successful environment.

(BEGIN VIDEO CLIP)

ALEX OKOSI, MANAGING DIRECTOR OF VIACOM AFRICA: You know, the march, it was, you know, not what it - is today quite frankly. The margin was still developed and we have to actually do a lot of work that's go up to market.

Africa at that time wasn't a place where you can come and launch a music channel, musical lifestyle channel, where there was a lot a lot of content available, not wanted to patronized Africa, we actually did a lot of work and developed in Africa music to do a content. That then went on our channel.

So we work with the talent of open workshops from going international directors, to work with our African directors (inaudible) when needed to understand how to create that content. In that process, we create a free music videos that would (inaudible) that catalyst and now comes in generation.

And we started in a music channel and hug channel that was really, really formidable and enable young African to show case their talent that, would knew that.

NICK PARKER, CNN CORRESPONDENT: And now, you have MTV, VH1, Comedy Central, BET, Nickelodeon, all of this brands under your table, how o you keep track of such a diverse series of channels? OKOSI: I mean, for us, you know, it's a great opportunity because when now, it was OK that the audience has found from ages four till 40 and beyond with diverse program and diverse content, diverse channels and diverse initiative that will of course, leverage to be able to connect with the audiences.

And we keep it track with that because as part of who we are, w are a network of friends within the U.S. or international and then, Africa. We have great people on our teams that obviously enable us to run these channels effective and having the really top channels in the platforms that existed.

PARKER: Let's talk about the market for a second. In the last 10 years, how has the reach and the profit margins of a very common Africa changed.

[02:25:03] OKOSI: I mean, the last 10 years, we're quite forced that we lost into a market and, you know, particularly, we have business plan that was put together what was based (inaudible) as being comfortable after a couple years which you have. Since then, you know, we've been able to achieved that. Since then, you know, we've been able to achieved, you know, high double digit growth in sums of revenue year on year which has been tremendous.

And, you know, so it's a very profitable business. And as we launch new brands, our goal, of course, is to be able to sustain that and grow that, you know, with organic real life accelerating the growth of our business.

PARKER: Which countries excite you, the name and potential growth?

OKOSI: Well, I mean, you know, it's South Africa where we are excite, you know, excites me in terms of growth set in the market still has a lot of opportunity for growth, still develop in market in a lot of ways. Nigeria, of course, is a huge market.

We've been in that market from day one without a T.V. channel. Also, one of the things that we did early on is to have terrestrial model to our business which enables us to tap into, advertise as fans that are obviously much more robust for the mass market. So we have grand the (inaudible) about channels, (like interest at television) in Nigeria which is a really, really, you know, did revenue driving force.

PARKER: How was the growth of mobile broadband impacted your business?

OKASI: I think it's been great for our business from two stand points. One, we had also partnered with a lot of mobile, you know, players to be able to execute initiatives. So, they serve as a very important partner from us, sort of advertising responsive standpoint.

What's great about us, is that we're very geared to be able to also monetize that space when it becomes really, really meaningful exercise.

PARKER: So, content (ph)definitely still king in Africa? OKOSI: Content (ph) I think will always the kind and I think the viewers, consumers will always be looking for a great content to engage with. I think the - for us, our focus is always on being able to create, aggregate and make, you know, great content available to our consumers across all type or forms, whether it's the television, whether it'd be on social digital media.

For us, content will always be the most important driver for entertainment.

(END VIDEO CLIP)

ASHER: Viacom now has 10 channels in Africa with localized content. And, of course, we expect that to grow. Don't forget to go to our Facebook page and our website, see all of our stories and share your thoughts.

I'm Zain Asher, thank you so much for watching. I'll see you next week in the Marketplace.

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