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, often known as the user-centric streaming fee mannequin, in 2022, and the introduction of the Followers instrument final yr, which permits artists to straight 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 current interview on MBW‘s podcast, noting that superfandom and the willingness to assist artists financially have all the time been a part of the music trade.
“Superfandom and willingness to pay is as outdated a task as there may be in music. Take into consideration all of the completely different examples of this – merch and stay [events]. Even in a obtain setting, 80% of the revenues have been pushed by 20% of the followers,” Seton mentioned.
SoundCloud’s new retailer is designed to cater particularly to those superfans. The SoundCloud Retailer will permit a choose group of Subsequent Professional artists to create and promote unique merchandise on to their followers.
It affords 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 contains t-shirts, hoodies, and hats, all designed with SoundCloud’s emblem and wordmarks.
Initially, the SoundCloud Retailer is accessible to customers in the USA, Canada, and the European Union. Participation is at the moment restricted to a choose group of Subsequent Professional artists who preserve full possession of their merchandise rights.
The shop launched with unique objects from artists comparable to 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 customized merch suggestions based mostly on customers’ listening habits, simplifying the method of discovering and buying artist merchandise. Beforehand, Spotify customers have been restricted to discovering merch by means of particular person artist profiles or particular album pages.
Abroad, firms like HYBE have been banking on superfans to develop their enterprise. HYBE’s superfan app Weverse, which sells artist merch and affords unique content material subscriptions, not too long ago reported a 17.4% YoY leap in income, pushed by sturdy fan spending.
In March, Joon Choi, President of Weverse, mentioned: “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 economic system is limitless.”
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