SoundCloud is making one other transfer to capitalize on the facility of superfans, foraying into merchandise gross sales with the launch of the SoundCloud Retailer.
The transfer follows the streaming platform’s earlier fan-focused initiatives such because the launch of the Fan-Powered Royalties mannequin, also referred to as the user-centric streaming fee mannequin, in 2022, and the introduction of the Followers device final yr, which permits artists to instantly message their most devoted listeners.
SoundCloud and its CEO, Eliah Seton, have lengthy acknowledged how superfans can drive consumption and income for artists. Seton highlighted this in a latest interview on MBW‘s podcast, noting that superfandom and the willingness to assist artists financially have at all times been a part of the music business.
“Superfandom and willingness to pay is as outdated a task as there’s in music. Take into consideration all of the totally different examples of this – merch and dwell [events]. Even in a obtain atmosphere, 80% of the revenues had been pushed by 20% of the followers,” Seton stated.
SoundCloud’s new retailer is designed to cater particularly to those superfans. The SoundCloud Retailer will enable a choose group of Subsequent Professional artists to create and promote unique merchandise on to their followers.
It presents a variety of merchandise that features t-shirts, hoodies, and limited-edition equipment. Moreover, the shop options the Necessities Assortment, a line of SoundCloud-branded merchandise. This assortment consists of t-shirts, hoodies, and hats, all designed with SoundCloud’s brand and wordmarks.
Initially, the SoundCloud Retailer is accessible to customers in the US, Canada, and the European Union. Participation is at the moment restricted to a choose group of Subsequent Professional artists who keep full possession of their merchandise rights.
The shop launched with unique objects from artists reminiscent of Wiz Khalifa, Denzel Curry, wolfacejoeyy, Bktherula, and Armani White.
SoundCloud’s entry into the merch market comes 10 months after Spotify launched its Merch Hub. This centralized platform curates personalised merch suggestions primarily based on customers’ listening habits, simplifying the method of discovering and buying artist merchandise. Beforehand, Spotify customers had been restricted to discovering merch by way of particular person artist profiles or particular album pages.
Abroad, corporations like HYBE have been banking on superfans to develop their enterprise. HYBE’s superfan app Weverse, which sells artist merch and presents unique content material subscriptions, just lately reported a 17.4% YoY leap in income, pushed by sturdy fan spending.
In March, Joon Choi, President of Weverse, stated: “I feel being a fan of somebody/one thing, loving an IP, and loving an artist is a common emotion, so the potential for progress within the superfan enterprise and financial system is limitless.”
Music Enterprise Worldwide
