Music Product Strategy Re-boot Time to Monetise Fandom, Not Access
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The 20,000 Foot View: As streaming reaches maturity in many of the largest music markets and middle-tier artists struggle to make ends meet with the live music hiatus, the time has come for a music product strategy re-boot – for a bold, new wave of music products that look to build beyond streaming, delivering increased income for both rights holders and creators. In this report, MIDiA presents a new product strategy framework and new formats within it.
Key insights
- Artist discontent the streaming slowdown create the conditions for a rethink of product strategy that puts artists fans centre stage. The 2010s about access, the 2020s will defined by experience
- Labels have an attention dependency, with algorithm-friendly and playlist hits becoming ‘music
- The ‘spikes’ success from playlist adds, TikToks other attention grabs are decoupled artists’ long-term success in building loyal audience and sustainable career, to the streaming business model
- Music companies access, but games companies have different focus – monetising consumption. 2020, in-game spending represented more half of all video games and will reach by 2027
- Fandom monetisation the solution and takes two forms: monetising micro-communities to improve remuneration, and premium artist products super fans
- MIDiA proposes artist product concepts to illustrate opportunity: artist sound pack; artist pass; fan scrapbook
- There is opportunity for labels to function an agency-like basis, developing premium and monetising fan communities to deliver fan dollars to supplement cents
Companies and brands mentioned in this report: Arcadia, HBO Max, MusicNet, OnlyFans, Peacock, Stadia, Spotify, Tencent Music Entertainment, Twitch, ViacomCBS, Warner Media, Xbox Live