Reports Music

Next Generation Music Products Monetising Super Fans With Interactive Artist Subscriptions

Report by Mark Mulligan
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The 20,000 Foot View

There is a growing disconnect between fan engagement and fan monetisation.  Facebook and YouTube took artist-fan engagement to the masses, but music spending is still falling.  Aficionados, the super fans that drive most revenue, are both being taken for granted and reducing their spend, trading down from multiple albums a month to        subscriptions.  A new generation of music products are needed, built around interactivity, multimedia and artist subscriptions. Products that will be radically different from their predecessors, and that will, crucially, be artist-specific, not store or service specific.  Rights’ owners will have to overcome some major licensing and commercial issues, but the stakes are high enough to warrant the effort.  At risk is the entire future of premium music products and of safe guarding the spending of the super fans, without which record music revenues will dwindle into insignificance.

Key Findings
  • Music Aficionados are the besting heart of the music industry, accounting for just        of consumers but        of revenue
  • Many of these Aficionado super fans are decreasing their spend with nearly a fifth having stopped buying more than an album a month
  • There is a disconnect between growing fan engagement and shrinking spend
  • Fans want more from their favourite artists:        of Aficionados think music is more than just the song, that it is also the artist’s story.         would pay for an interactive artist app with video, photos and other types of content
  • A new generation of        products built around artist subscriptions is needed to harness the growing demands of Aficionados and must be Dynamic, Interactive, Social and Curated (DISC)
  • Subscriptions and crowd funding are the two key monetisation tools for        music products
  • Streaming services are key, and artist subscriptions within them can both drive Aficionado spend and monetise the revenue non-man’s land between ad supported and full subscriptions
  • Subscribers are the Aficionado elite but are under monetised.         would buy tickets and merchandise from artists in streaming services while        would pledge to get an interactive album app ahead of general release
  • YouTube is priming fans for artist subscriptions:        of consumers subscribe to artist YouTube channels and the top five of those have        million cumulative subscribers  

Companies mentioned in this report: PledgeMusic, Kickstarter, Bandpage, Paetron, Disciple Media, YouTube, Facebook, Instagram, Wikipedia

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