(Hypebot) — Spotify is signaling the addition of in-app “superfan clubs” that would enable artists to monetize their most loyal fans.
The news came in a Spotify blog post celebrating the changes made possible by the March 7th rollout of the EU’s Digital Markets Act (DMA), which strikes down restrictions put on apps like Spotify by Apple. After March 7 the streamer can message users in its app about promotions and new offerings “without the burden of a mandatory 30% tax imposed by Apple.”
“We will be able to communicate clearly with you in the Spotify app about new products for sale, promotional campaigns, superfan clubs, and upcoming events, including when items like audiobooks are going on sale,” wrote Spotify.
Just in case that wasn’t a clear enough indication that superfan clubs are coming, later in the same post Spotify said: “Thanks to the DMA, we’re looking forward to a future of superfan clubs, alternative app stores, and giving creators the ability to safely download Spotify for Artists or Spotify for Podcasters directly from our site – and that’s just the start.”
Top executives at UMG and WMG have recently been very public that superfans are a major focus going forward.
“You now have hundreds of millions of subscribers, and maybe 20% of those subscribers are the market for a ‘super premium’ tier at a higher price point,” UMG EVP, digital strategy Michael Nash said at the Music Ally Connect conference. “We’ve tested different product configurations, and we’re excited about what we might be able to develop with our platform partners.”
It appears that some of those UMG tests were with Spotify.
EU only?
We’ll be watching what happens on March 7th, but for Spotify superfan clubs to reach their full potential, they must also be available in the US, and so far, Apple’s 30% fee for in-app purchases is still in effect here.
There is talk that the US Department of Justice or Congress will step in to change that.
At the moment, however, Spotify seems likely to launch superfan clubs exclusively in the EU or, at best, outside of the US.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
It’s Superfan Week on Hypebot
Hypebot Superfan Week highlights
• What is a Superfan, and Why do UMG, WMG (and everyone else) care so much?
• Searching for Superfans: Forget the numbers; concentrate on community
• Monetizing Music Superfans: Billion Dollar Opportunity or Superfantasy?
• Bandsintown Artist Checklist: How To Build a Community of Superfans
• How to sell more music merch using these eight proven tactics
• How Artist-Fan relationships can make or break an Artist
Join the Superfan discussion
To share your ideas and feedback and to continue the Superfan discussion, head over to Hypebot on Facebook and LinkedIn, follow us, and leave a comment or message us.
