Live became the place superfans began to shift their spend, with merch sales growing in live’s wake. As music sales fell, live revenues grew, almost in mirror opposite curves. 50 quid bloke had become an endangered species. People just were not buying albums anymore. When Spotify came to market, the recorded music industry was in crisis, with revenues in freefall. Music sales started to plummet and the album began its long, steady demise, as consumers dissected albums, first on Napster, then iTunes, and then YouTube and Spotify. Then along came Napster, turning the world upside down. And there was no ceiling on how much they could spend. Superfans would buy multiple albums every month ( leading to the rise of the ‘50 quid bloke’). The CD era catalyzed music buying at scale and the heyday of the album era. Yet, music sales were still the main fandom game in town.
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The live business emerged as a revenue generator in its own right (rather than the loss-leader for selling albums that it had largely been). Throughout the ’70s, ’80s and ’90s, the music business further professionalized and productized. A small portion were also members of (usually fan-run) fan clubs. The means of demonstrating that fandom was buying the records and, if you were really lucky, seeing the band. In the early days of the modern music business, music fans were the superfans.
And the reasons for that lie in the very same streaming economy that the industry is trying to build beyond.
The problem is that they may not be as valuable in the future as they once were. There is no doubt that superfans are crucial – they always have been.
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Little surprise, given how record labels are trying to establish superfans as the next growth driver for an investor community that is growing increasingly concerned about slowing streaming growth and looming threats, such as AI. There has been a lot of talk recently of music superfans and how they may be the shining light of the industry’s future. ( Hypebot) - The music industry mantra is that superfans are the key to success, and while there’s still truth in that statement, the value of a superfan is not what it used to be, writes MIDiA’s Mark Mulligan.īy Mark Mulligan of MIDiA and the Music Industry Blog
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