Music Streaming Services Sell Musicians Access To Their Fans; SoundCloud Goes A Better Way
from the connecting-with-fans dept
Back in January, Walled Culture wrote about an interesting initiative by the German online audio distribution platform and music sharing service SoundCloud, with its Fan-Powered Royalties (FPR) approach. At the time, we noted that it was a kind of halfway house to the true fans idea this blog has promoted many times.
We also pointed out that one of the major benefits of the FPR approach is that it provides detailed information about an artist’s true fans, which in turn allows more income to be generated from that audience segment, through targeted marketing of concerts, products and services. It seems that SoundCloud has understood this, as evidenced by its new “Fans” service, now open to some 50,000 artists, which builds on its earlier FPR move. Here’s how SoundCloud describes the idea:
The Fans product helps artists discover their most valuable fans on SoundCloud, tapping into a combination of proprietary data from Fan Powered Royalties, engagement data, and user reach. You’ll even be able to sort your most engaged fans based on indicators like comments, listening behavior, sharing habits and more.
Just knowing who your fans are isn’t always enough. That’s why we’re also allowing you to message those fans easily and directly. Say thanks, share previews of upcoming releases, sell tickets and merch, or just open up the opportunity to chat. Regardless of where you are in your career, you can bring your fans in on the journey – and let them help you succeed.
This is an encouraging development, because it turns the current streaming business model on its head. As SoundCloud rightly points out:
Streaming isn’t working for the vast majority of artists. Why? Because streaming services won’t tell you who your fans are. Instead, they run business models built on selling you access to your fans. And the streaming services aren’t alone – ticketing and merch platforms won’t tell you who your fans are, either.
Most platforms keep artists in the dark about their fans: it’s a really important point that musicians and other creators need to understand if they are to receive fair remuneration for their work, and to take back control of their creative destiny. It’s good to see SoundCloud leading the way here.
Follow me @glynmoody on Mastodon. Originally posted to the Walled Culture blog.
Filed Under: connect with fans, fans, streaming
Companies: soundcloud
Comments on “Music Streaming Services Sell Musicians Access To Their Fans; SoundCloud Goes A Better Way”
Privacy?
I don’t see any mention of user consent here, and under many privacy laws a line in the terms of service isn’t going to be enough: the consent would have to be explicitly given and truly optional.
If they’re giving usernames, “listening behavior”, and “sharing habits” to musicians, from users that haven’t specifically allowed it (as I’m sure many would), they might have a problem. There is a “Privacy and Safety in the Fans Tool” page, but it says nothing about privacy (or safety), only who can send messages to whom.
So, how do they make money?
Great insight, but what I don’t understand is how this new streaming service expects or is making a new business model work? Or is it a new business model? What are they doing differently in terms of a business model compared to other streaming outfits?
Re: Good grief!
Not everything in this world is about making money! Why are US Americans so obsessed with money?
Re: Re:
What do Americans have to do with this? SoundCloud is a German company with Swedish founders, and the first big investment came from a London company. That’s “investment”, not “donation”, which suggests those Brits did think it was about making money. A bunch of Americans are investors now, and I imagine they’ll also be pushing the company to earn money, but they weren’t the first ones to think it important.
(Germany does, by the way, have several types of non-profit organization that could’ve been used if the founders hadn’t sought profit instead.)
SoundCloud is brilliant!
“German online audio distribution platform and music sharing service SoundCloud”
Aye, there’s the rub. I love SoundCloud, it is one of the very few places I spend money. They’re better because they’re not greedy US Americans!
Re:
No wonder you approve.
Germany is considering inking deals with your master, Xi jinping…
Soundcloud Messaging
Soundcloud has done something great here; other streamers need to take note. A problem with it, however, is that it is one-to-one messaging and, therefore, very time-consuming if you want to sell tickets or increase streams.
It’s not a streamer, but Bandsintown, for example, offers 1-to-many messaging to followers at no cost and has for years.
So SoundCloud is undergoing an OnlyFanization.