Tag: direct to fan

Why fanbases need to be networks, rather than channels

Posted on | by Bas Grasmayer | 2 Comments on Why fanbases need to be networks, rather than channels

The foundations of the music business lie in an age of channels. Many current success models still focus on channels, despite living in an age of networks. Due to this mode of operation, a renewed demand for channels has created a landscape of influential gatekeepers over the past decade. But you can still opt to play the network game instead.

The channel landscape

Two clear examples of the new emergence of a channel landscape are Spotify and SoundCloud. Both of them started as platforms that were centered around the user and their networks. Spotify let its users build playlists and those were the playlists it served through its search and other features (actually, for a long time playlist discovery was handled by third-parties like Playlists.net, at the time called ShareMyPlaylists, now part of Warner Music). Over time, playlist brands emerged and Spotify started investing heavily into its own editorial brands – even prioritizing them over ‘user generated’ playlists.

SoundCloud started as a collaboration platform that quickly turned into a music-based social network – in some ways not very different from Twitter, which at one point considered buying SoundCloud and ended up investing $70 million. The main page was its stream, where you can see what people who you follow are uploading. Nowadays, the main page has featured playlists, personalized recommendations, charts, and themed playlists for studying, partying, sleeping, relaxing, etc.

Editorial playlists are channels. Both platforms went from social-first to channel-first and so did the much of the rest of the landscape.

Linearity

Channels are linear. You broadcast down them. You distribute through them one-directionally. In the CD days, if things start travelling in 2 directions in a distribution channel it meant there’s a big problem.

This linearity is what shaped modern music culture as it has emerged in the age of the recording and post-WW2 consumerism. It went hand in hand with the economies of scale that many also unknowingly sign up for when doing music, despite alternative ways being possible.

Non-linearity

We now live in the age of networks. This has been the most profound shift since the internet. Not streaming and not piracy, which are both just symptoms of what happens when something can be turned into data that can then travel without friction through networks.

It has created virality, internet memes, and an overabundance of ‘content’ since creating something and making it available for all to see is easier than ever. That’s true for your track, but also the 59,999 other tracks uploaded to Spotify every day. This problem has meant that platforms like the aforementioned have invested heavily in recommendation algorithms in order to ensure relevance to their users. That creates channels and in the case of certain big social media platforms, it means that people have to pay to actually reach audiences that already follow them.

The landscape also means you can branch off. You don’t need to do interviews in magazines in order to talk to your fans. You can set up your own groups on messaging apps, you can do newsletters, set up forums or Discord communities, etc. It can feel like a handful of companies are setting the rules, but you don’t have to play ball.

Non-linearity in fan communities

Whether you’re an artist, label or startup, how you structure your relation with your fan or user base determines the type of game you will be playing. For contrast, the below graphic looks at traditional linearity in artist-to-fan and fan-to-fan communication and compares it with a ‘network model’. The network model means that as an artist, instead of broadcasting down, you’re placing yourself inside your community of fans.

A community means multidirectional conversations. These conversations exist inside fan clubs, but that information would then have to be moved back up. If, instead of that, you’re participating in the fan community, you have access to more (qualitative) data and insights… with the added bonus that it gives you and others a sense of belonging.

Getting people to pay for something that’s abundantly available is a hard business. The better you understand the fans of your music, the more manageable that challenge becomes… and it will also help you develop completely novel ideas.

5 ideas for fan conversations

Basic rule of thumb: the more you interact with the people who like your music, the better you’ll understand them, which significantly impacts your odds of running a successful business. It also brings up one of the most underestimated challenges in music:

How do you get someone who likes your music to hear you again? They may have heard you on the radio or a playlist somewhere… now how do you make sure they keep listening to you over time?

Below are a few ideas that can help with fan retention and help build your understanding of your listeners in order to unlock new ideas to fold into things like Patreon memberships, crowdfunding perks, limited merch, or whatever you conceive.

  • The chatroom: “just set up a Discord” is thrown around a lot, but the relatively simple concept of creating an environment where fans can interact comes with real challenges. There’s a cold start problem meaning people join empty channels, only to disappear because the community feels dead (which then turns into a self-fulfilling prophecy). There can be abuse, where people spam channels or are not respectful of others. How you plan around these issues and the way you decide to architect your community determines what types of conversations and interactions you enable.
  • The weekly hangout: if you have a limited number of engaged fans, perhaps reach out to them individually and set up a weekly hangout where you all chat about life & music. Over time, bonds will form and people will feel more invested in the success of the reason why they’re connected: your music.
  • The monthly 1-on-1: set up a monthly, individual call with various fans, one on one. Check in on each other. You’ll not just get a snapshot of who people are, but you’ll get status updates, hear how they’re progressing on certain projects… and they’ll hear the same from you. This is one of the Patreon perks I offer to 1:1 supporters and although I expected it to be mostly consultancy calls, I’ve actually gotten a lot of value out of it by learning about new domains.
  • The ‘user interview’: user interviews are something I learned doing in various product roles at digital music services. Whenever you’re exploring a certain challenge, for example a new merch line, you reach out to a bunch of your fans directly and hold an interview with them (that you prepare well beforehand). In this situation, things you might want to find out are how they see themselves, how they express themselves through objects or clothing, how much they spend, how they decide to purchase items, etc. These are 1-on-1 calls and you can find plenty of great resources about this by learning more about a domain called ‘user research’.
  • The co-creation: you can also kick off a project where you co-create something with fans. For example, you could aim to create an audiovisual map and have fans populate parts of this map, based on their location. Working together on something helps you to understand people in new ways, it will let you see how people express themselves, and in what ways they like to be creative themselves.

Besides building a sense of community and connection, it’s important to always consider what you want to learn from these interactions. I could think of dozens of additional ideas for interaction, but what’s most important is that you understand the challenges before you and start thinking what type of insights will help you address those challenges. In some cases, the challenge might actually be to speak to fans so you can get more clarity on what goals to set.

The choice is yours

Not everything has to be in the hands of a few platforms. You can choose to interact directly with fans and you can do it today by DMing some people who recently liked your posts. Break out of the channel paradigm and see what you can build through network. It’s not one or the other: you can play both games. Just don’t be fooled by the dominance of channels. In the words of Black Sheep: the choice is yours.

Why YouTube is the streaming service to watch

Posted on | by Bas Grasmayer

Spotify often gets contrasted with Bandcamp in order to explain the challenges of the music streaming landscape: low per-stream royalties versus much larger commissions on sales. The intensity of that discussion has moved all eyes from the actual one-to-watch, which is not Spotify, but YouTube – a service with a billion monthly active music listeners and 30 million subscribers.

Always has been

YouTube has of course long been on everyone’s radar due to the so-called ‘value gap’: the disparity between what YouTube was willing to pay for music & its perceived real market value. As the biggest music platform, YouTube was infamous for its low per-stream rates which, on average, are significantly lower than Spotify’s for music identified through its ContentID system (source). I chose to phrase things in past tense due to attention shifting to Spotify, but that does not mean rightsholders have found these issues to have been resolved.

Another concern is the power of YouTube and its mother companies Google and Alphabet, which is a common reason for complaints from music industry lobbyists about having imbalanced negotiations. Before I go into why I think YouTube is making all the right moves: the concentration of power towards tech monopolies is of big concern for me too (it’s why I deleted or deactivated my accounts on Facebook, Instagram, and WhatsApp). Keep this in mind when developing a strategy: always diversify, never put your eggs in one basket, and make sure you create ways to go direct-to-fan (e.g. collect phone numbers, email addresses, build communities).

YouTube’s evolution as a creator service

Google’s video service has long had something of great strategic value: not music. I mean that literally: it’s had content and creators that were not doing music. This has meant less complexities around licensing (but also poorer representation for creatives) and has allowed YouTube to experiment with new models.

The same is happening now with podcasts at Spotify and user-centric streaming payments at SoundCloud. Having ‘user-generated content’ from unsigned artists allowed SoundCloud to start trialing its ‘fan-powered royalty‘ model without every rightsholder having to opt-in through contract negotiations. Meanwhile Spotify is exploring new monetization models around podcasts, like paid podcast subscriptions. As a relatively new medium, podcasts don’t yet have the legal and political complexities associated with intellectual property in music.

YouTube & the next layer

Streaming is a base layer for music monetization. It’s shallow in that it leverages nothing but the relation between listener and catalogue. Monetization is driven by factors like accessibility (e.g. all devices, price), portability (e.g. offline) and convenience (e.g. catalogue size, search, recommendations). It’s absolutely basic: it’s not about the relation between fan and artist, it’s not about the quality of the art or music, it’s just about having the largest and most convenient store where you can access everything by paying from a magic wallet with your costs predictably capped at $10 per month. It’s a subscription business, not a music business – as Tim Westergren (founder of Pandora and now livestreaming service Sessions) also pointed out in my recent interview with him during Karajan Music Tech.

This base layer has advantages: it generates a huge amount of money for rightsholders and creates a foundational data layer which can be used to connect listeners to new artists and music or could be leveraged to learn more about existing fans and get new music to them. But streaming was never supposed to be the future of the music economy. It needs additional layers on top.

One of these layers is the Interaction Layer. This layer has been thriving during the pandemic thanks to a particular medium: livestreams. Livestreams encourage interactivity: fans can be exposed to each other in chats and the chat functionality can make fans feel like they’re seen by the artist(s) they care about so much. That means there’s value being created beyond simple music access. Value means opportunity to monetize and YouTube has seized that opportunity.

Image taken from my Water & Music piece about fan-centric streaming services (paywall).

Through its Super Sticker and Super Chat features, YouTube allows creators to monetize their livestreams. Super Stickers are big, fun and quirky custom emoji that appear in the chat in exchange for a small fee. Super Chat allows viewers to highlight and pin a message for a certain duration of time, depending on how much they pay. In the first months of the pandemic lockdowns, from March to June 2020, over 2 million new users spent money on these features.

The second feature that provides an additional layer is channel memberships. This allows creators to created limited edition content, similar to what they might offer on Patreon or a SFW OnlyFans. At smaller numbers, it even allows them to create semi-bespoke content.

Layer integration

These features allow creators to monetize and connect with fans where they already are: YouTube (as opposed to onboarding them to Patreon or OnlyFans). This is the important distinction. These monetization options are not novel in and of themselves – many of them have been around for years or even decades. The important development is that these experience and monetization layers are integrating. Moving fans around various platforms causes friction, which means you won’t be able to convert everyone down the funnel from the streaming layer. It also keeps the data in one place instead of fracturing it.

Graphic from Streaming is not the future of the music economy, from the second edition of the MUSIC x newsletter, February 2016.

Over the next years we’re going to see many examples of artists successfully building models on layers that sit on top of streaming. YouTube is going to play a significant role in that. The conversation will move from leveraging streaming (still essential for discovery & connection to wider audience) to interaction & bespoke options.

Another service to watch in this space is Amazon Music, which is slowly expanding their integration of livestreams from Twitch (another Amazon company, which also allows micropayments and memberships like YouTube).

Livestreams mean original content and a different set of rights than what you negotiate for on-demand streaming. This has given YouTube and Amazon the flexibility to experiment with these new layers. Spotify’s business strategy has introduced similar functionality to podcasts, but will they be able to do the same for music given the complexities of licensing and the various rightsholders that will want a piece of the pie?

The music streaming landscape is in flux and it’s not about Apple Music vs Spotify or Spotify vs Bandcamp anymore.

–

For a wider read diving further into this trend, read my article The rise of the fan-centric music streaming service at Water & Music (paywall).

A special thanks to Vickie Nauman for some of the inspiration for this piece and to c/o pop and Germany’s association for independent music (VUT) for having us on a panel last week.

Thinking small: a meditation on scale vs success for artists

Posted on | by Bas Grasmayer

Breathe in for 4 seconds, hold for 4 seconds, exhale for 4, pause for 4… Repeat.

When we think success, we tend to think big numbers. Most familiar examples of success have big numbers in common, especially those examples discussed around the world in newsletters and blogs like this one. The logical conclusion: success = big numbers.

Yet, when discussing success with musicians, I’ve found most would just be happy to make a difference to some people & be able to make a living off of it. If the goal is to make a living, then why does success necessarily involve racking up small amounts of royalties through thousands of plays until you finally have enough to make a living when combined with live gigs?

Our success maps are lousy. They’re based on highly visible examples of success which leads to a biased map. It also models strategy after something that worked in the past, but may not work as well now. If an artist achieved scale by cleverly playing the game of early-SoundCloud & the iTunes charts (Yellow Claw comes to mind) it’s impossible to copy that exact foundation since the context for the methodology has changed.

Breathe in, breathe out, think small

If the goal is to make a living, why bother playing the game of big numbers? Pitching playlists, building various social media profiles, gaming algorithms and spending countless hours on all that in the hope that the thousands of followers will translate into sufficient streams and bookings. It’s considered ‘the way’ to do it, but what if the goal can be achieved more efficiently on your own terms?

  • What does making a living mean for you? How much would you need monthly?
  • What do you enjoy doing? What would you like to have more time for?
  • How much time do you want to spend on your craft?
  • What do you dislike doing?

Take a moment (actually, take a week, or a month: this is your life we’re talking about). Breathe. Reflect. Define your goals by what you want, not by what you think is needed. Is having hundreds of thousands of fans a fun goal or is it actually methodology masquerading as as a goal? Achieving massive scale as an artist may look like success, but it’s often just a symptom of the methodology to achieve goals and not the goal itself.

Question your goals. Carefully & deliberately choose the game you play.

Why scale matters / mattered

Scale is a game. For companies that make money exploiting catalogues, scale is required in order to turn low margins into a big business. The same is true for ad-funded business: each individual ad serving isn’t worth much, but if you manage to get lots of people to constantly pay attention to your platform and your ads, you have a business. These dynamics underpin a lot of the modern music landscape: labels, social networks, music services – they generally all play a game of scale.

In the past, the range of available business models for musicians was quite limited, so musicians often opted to play the game of scale in order to sell lots of low margin products to make a living.

Thinking small(er)

Imagine you could only ever have 1,000 fans (not necessarily ‘1,000 true fans‘). How would you turn that into a business? Your livelihood would depend on the patronage of these people: how would you win that patronage?

But a fanbase is not actually the starting point of either your strategy or the ‘user journey’ to becoming a paid fan. Thinking small requires you to question how people discover you and your music. What do you need to convey in order for people to understand that being a fan of your music is different?

Inhale, hold, exhale, wait, repeat.

Ask: What are you leading your fans towards? What can you ‘sell’ to them and at what price? Remember: the higher the price, the smaller you can keep your numbers. Small scale has considerable advantages: the communication overhead is smaller, signal to noise ratio is better, you personally feel much more connected to your fans and so will they, plus it will be easier to reach them. A common trap is that people focus on ‘how to get heard’ by new people without thinking carefully about ‘how will they hear me again?’ In the case of small scale, you could potentially drop everyone a personal note or even a call.

Be brave in imagining scenarios. What if 90% of your art was only available to your Patreon, Substack or OnlyFans subscribers?

Create scarcity early

Figure out what’s the smallest number of fans you could monetize in order to make a living. Making abundant what’s easy to replicate is typically a good idea, as it helps with word of mouth & leverages the network effect of platforms & organisations that play the game of scale. But pause there.

Hold your breathe for 4 seconds, breathe out for 4 seconds, wait, and breathe again.

Now consider the fan journey: if people discover you through word of mouth or a playlist, what do you want their first impressions to be? What type of relation do you want them to have with you & your music? Through what tools and platforms? How do you bring them there when they’re first introduced to you? What does this introduction look like?

Reward fans with scarcity and do so early on. Scarcity is everything that can’t be easily made abundant: a one-on-one call, limited edition items, an NFT, playing a video game with you online, etc. Align it with what you like & what your fans like. Consider how you reward: perhaps you reward everyone who completes certain steps in the fan journey with something scarce, which can be as simple as a personalized message or a public shout-out. Of course, in order to build a business model, you will also reward people with scarce items in exchange for currency.

You can’t start early enough. Set your goals. Think about scarcity. Think about your fan experience, even if nobody has heard your music yet. Build it out together with your community.

(And if you decide you want scale: that’s fine)

Exhale.

Music NFTs: why buy them?

Posted on | by Maarten Walraven-Freeling

The more I read and hear about NFTs the more sense it makes to me for artists to get in on the act and find a new way to broaden their revenues (here’s how artists can go about creating and selling an NFT). But what about the buyer’s perspective? Why should they get in on it too? Is it about having a collectible, a one-of-a-kind? Is it just about supporting a specific artist? Or, is it an investment? Moreover, and this is the focus of this article, what’s the potential for artist-fan relations in light of the functionalities and possibilities of the blockchain?

Screenshot of audiovisual NFT by Teebs & Yuma Kishi on Foundation

The buyer’s value

Just one month ago Bas spoke about NFTs in the context of Mike Shinoda‘s first sale. In that article he argued that buyers step into this world because they’re building a world, a metaverse. In that metaverse, we need items that will help us showcase our identities. An NFT is one way of expressing identity and there is value in that. Similarly, in her The state of music NFTs [paywall] article from 14 January, Cherie Hu argues that one way to look at the tokens is as a form of rare digital merch. This, again, relates to confirming your identity, this time as a fan. Continuing along those lines, Hu asserts in a follow up article [paywall] that we shouldn’t even be paying that much attention to the crazy bids driving the hype through auctions but on the potential of selling multiple NFTs at a fixed price point. That’s what will allow artists to tie their fans to them and open up new fan-to-artist interactions.

The buyer’s value, then, is much closer to what happens with certain membership platforms. One example is Hanging Out With Audiphiles, Jamie Lidell‘s podcast, which has a Patreon where he shares the sounds he makes for each episode. His patrons can then make music with those audiofiles. An alternative would be to mint each sound file as an NFT and in that sense give some extra ownership to those ‘superfans’. Even more exciting is when the NFT ownership provides access to more than just, in this example, the sound file. The NFT can then come with special access to the artist (kind of similar to 3Lau‘s recent auction where the highest bidder gets creative direction on a new song by the DJ).

From membership to equity

In a world where what’s called the creator, or passion, economy is growing the distance between artist and fan is shrinking at a similar pace. Livestreaming during the pandemic has provided access to artists in their private spaces and often without lights and make-up. Similarly, services like Cameo and Clubhouse allow the type of interaction between artists and fans that was often unthinkable just a few years ago. With greater access to your favorite artists through a variety of social media and the ability to support those artists directly through membership platforms the logical next step is to consider the artist as something you can have equity in. Jess Sloss from Seed Club explained this idea to Colin and Samir:

Viewed simply, this just looks like moving from paying a monthly subscription to support an artist to buying NFTs with the same result. Where this evolves, however, is when FTs come into play. Once an artists gets their own token, they can start playing around with various layers of access. Because this token represents real value – for example on the Ethereum blockchain, but there might be more potential with something like Polkadot – the investment changes. The point of a membership is that you can cancel it at any given time. Conversely, the only way to get rid of the equity you buy into an artist is by selling it. In other words, to shift it to another fan.

From equity to growing revenues together

There’s a bunch of start-ups working in what Rolling Stone dubbed ‘equity crowdfunding‘ back in 2019. The idea, roughly, is that based on future streaming royalties, fans can invest in their favorite artists to help them create new music. By investing in an NFT or, for example, a social token, the fan engages in the potential for revenue growth. Whether this is through a resale factor, which usually holds a percentage for the artist in the smart contract, or through a secondary right attached to the token (see Jacques Greene‘s publishing rights).

Besides the artist and the fan, there’s also a space here for the developer. As Bas argued in his article on NFTs, we should view the whole blockchain experience as a metaverse in itself. As artists and fans find their ways to connect within that metaverse, there’s also a lot to be gained by the developers that pave the roads that allows those connections to grow. Where these three levels find each other, is where we will see the most growth in this world. What’s more, those types of collaboration will hopefully advance mainstream adoption both for fans and artists throughout this year.

In short, NFTs are one logical next step in a world where the interaction and proximity between artist and fan respectively grows and shrinks and moves towards levels resembling collaboration.

No meritocracy in music: direct-to-fan, brand partnerships, rights management

Posted on | by Maarten Walraven-Freeling

There’s a need to excel in human beings. If you go into music, you do it to be successful; if you set up a music/tech business, you do it to be successful. The hits you generate or the unicorn status you achieve subsequently measure your success. To focus on the artists for a moment, there’s a seemingly growing number of artists who make a living from streaming revenues: Spotify talks about 43,000 artists earning 90% of the revenues thus giving them a solid income and AWAL says that they see a 40% year-over-year growth of artists earning more than $100k a year from streaming. This sounds positive – and reminds me of the Hans Rosling TED talks that take a macro view and say overall life on our planet gets better over time – but still impacts only a very small amount of artists. As Mark Mulligan has recently argued, there’s no silver streaming bullet to fix this: equitable remuneration won’t; user-centric payment systems won’t. So what will work? And what does that mean in terms of that insatiable need to excel?

What will work? Or, what needs to be done?

I recently wrote that music is the catalyst of the creator economy. In this economy driven by passions it is connections, mainly between artists and fans, that create and amplify value. To succeed, artists need to engage directly with their fans which in turn means they need to gain access to those fans. This requires more than a ‘follow’ on Spotify or adding a song to a playlist. Fans need to do more and artists need to entice them to do so. Key to this is marketing and, to paraphrase Cristina Jerome, knowing who your fans are, being where your fans are and then creating content relevant to the platform they are on. Listening to Cristina speak during a recent recording of the Unsigned Podcast I realised how the marketing she does with artists through RnBae Collective follows one of the tenets of the passion economy: the benefit of focusing on a small group over scale.

Brand partnerships

One way to develop this intimacy and monetize it is through brand partnerships. One key to success is authenticity. We believe it, for example, when Beyoncé tells us she’s on a fitness journey just like everyone else. Maybe we don’t believe it when James Blake tells us he always checks his songs in a car before putting them out. So stay true to yourself when deciding on a brand partnership and make it a personal experience as a consequence.

Beyoncé x Peleton

Another key to success, and this relates back to the point about intimacy, is that having a dedicated fan base – and this doesn’t have to be big, sometimes it’s even better if it’s niche – is what will draw the brand in. The partnership should then focus on something the artist wants to create, an experience for the fans, and an opportunity for a brand to get involved and gain the recognition from being attached to a genuinely creative process or product.

Ownership

There’s a great quote by Tim Sweeney from Epic Games: “The worst term that’s ever been invented in the history of the internet is ‘own the customer’. ‘The customer owns themselves!” Lots of talk around the passion economy focuses on ‘owning your fan’ but what that really means is to have direct access to your fan. No ownership is involved there. If anything, the fan should end up feeling like they have some ownership in the creative process they support.

Where ownership does matter is when it comes to the music. Not just because cutting out middlemen ups the revenues that will end up in the artists’ pocket. Moreover, ownership gives freedom to pursue other lines of revenue. It’s important to think out of the box here as music can be used in all kinds of ancillary projects. There are, for example, great opportunities in synch licensing, but also more broadly there are opportunities to get involved with shows and films. This is a tip from Matt Levin, who works in this space through Endeavor Content. His point was to not just try and get – to stick to the example – a song or composition synched on a show, game, film, etc. but to see if you, as the artist, can get involved. That way, a deeper partnership establishes itself which in turn creates and more value.

The need to excel, or the pitfall of meritocracy

We love to think that we can do anything we set our minds to if we just show discipline and perseverance, but that’s not how it works (there is no 10,000 hour rule). Believing that it does, and that we live in a society where you are judged on merit only, specifically doesn’t work in music either. Music is always made as a collaborative effort: even the singer/songwriter needs a team. Furthermore, there’s so many great musicians and bands, that there’s many more that would deserve, on merit, to be successful than those 43,000.

The work necessary to achieve what I’ve described above – building relationships with your fans, retaining your rights and getting creative with revenue streams – takes a lot of work and a lot of people. The pitfall of the meritocracy means that when you fail it’s often your failure and yours alone. But it’s not, it’s part of a much broader discussion about value, of music and of production. To maximize the value of music, the best solution right now is to start talking directly to your fans and being open to the myriad options out there to further monetize what you create. Doing that is tough and takes a lot of energy. It means it’s not just about the music and making music, but, and perhaps even more so, about the many stories that surround the art and the creative process.

Music is the creator economy catalyst

Posted on | by Maarten Walraven-Freeling | 1 Comment on Music is the creator economy catalyst

In his book The Passion Economy Adam Davidson argues that our current century is one where people set up businesses that centre around their passions. This contrasts with the main tenet of the previous century, where the focus was on commoditization, production and scale. This economic change underpins an important marker which Davidson generalizes as follows: “The Passion Economy is about quality and the conversation you have with your clients.” (p.38) Music is perfectly positioned to play into this shift and, indeed, does so already.

Davidson doesn’t specifically write about music and musicians. Similarly, if we look at the top 100 social media as defined by the Knight Institute at Columbia University, we see platforms not designed for music or musicians but used by them nonetheless.

Social platforms sized by popularity. Source: Knight Institute

How creators create the most

The researchers at the Knight Institute call these bubbles ‘logics’ hinting at an underlying logic, or function, that connects what’s inside of the bubble. The biggest bubble is that of the ‘creator logic’ which the researchers define as follows:

“creator logic platforms are for everyone and enable users to share a specific type of media (like video, livestreams, or art), in a one-to-many fashion. They are home to “creators,” people who consistently make content for the platform, often as a source of income. Some examples of creator logic are YouTube, TikTok, Twitch, and Wattpad.”

Other platforms to include here are the subscription platforms such as Patreon, Currents.fm or Ampled. As Cherie Hu has argued last year, music is at the core of the the crowdfunding model underlying these platforms. What they may lack in popularity against platforms like Twitch, they gain in terms of the value they capture. Let’s go a little deeper into how music catalyzes these creator platforms and permeates the broader social media ecosystem.

Adding value

Whereas crowdfunding has strong roots in music, platforms such as Twitch, TikTok, and YouTube are first and foremost video-sharing services aimed at connecting people through experiences and stories. By now, we know how important music has been and still is when it comes to growth on these platforms. Twitch, for example, while still primarily being a platform for gamers, has seen massive growth in music streamers. Looking at Twitchtracker, the growth in channels and viewers between February 2020 and February 2021 is impressive. The number of channels broadcasting music tripled, and the number of viewers grew by almost 7x. Of course, the integration between Amazon Music and Twitch further establishes the role of music on the livestreaming platform. Similarly, music is a driver of growth on TikTok and music remains a key driver of traffic on YouTube with 22% of all views attributed to music videos. The reason, I argue, that music plays such a key part on these creator platforms is its ability to convey quality and trigger conversation.

A great example for this, which will immediately show how music permeates the wider social media ecosystem, is by going back to 2019’s biggest TikTok star: Lil Nas X. Besides having a breakout song that was ripe for conflict, perfect for meme-creation, ideal for dance challenges, etc., the artist also played into the feedback loops necessary to engage an audience. Moreover, he did so using a broad variety of social media, posting short snippets of songs on Twitter for example and asking for feedback. Of course, this requires a certain type of artist and not everyone is willing to engage in, what Jade Gomez recently described in Complex as: “commentary and memes that almost make them separate entities from their music itself.”

Capturing value

When, as an artist, you ask yourself how do I add value and how do I capture that value through my audience, it’s important to stay close to who you are. If you’re not the type of person who is happy to enter an endless feedback loop of commentary and memes, you can still look at how you can take advantage of stepping into a dialogue with your fans. The platforms are there and users are eager to engage with music. More and more, fans are becoming creators themselves, the dialogue between fan and artist becoming one where music-making is a shared passion. The creator tools for this are many and the business around it is worth almost $900million. Artists can draw the most loyal of their fans to places like Patreon, where they can give insights into their production processes and provide access to their own sound files for their fans to work on. A great example of this is Jamie Lidell, who sends out audio packs of all the sounds used during his podcast recordings to the higher-tier fans on his Patreon.

Big Tech and the Creator Economy

Recent developments show how the bigger tech companies are wisening up to the chain of feedback that allows artists, and creators more generally, to find audiences, cultivate them, and then capture their value directly. Amazon is one example of a company trying to create an integrated flow for this, but they miss the platform where people can take a megaphone and shout. A great place to do just that is Twitter. With their development of Spaces and the acquisition of Revue, Twitter seems to position itself as, what Peter Yang calls, “the full-stack platform for expert creators.”

Source: Peter Yang, creatoreconomy.so

The key element to this that Yang focuses on is the ability to mix content types. Again, this will have to fit the personality of the artist, but the message is clear: flip the value relationship between yourself as artist and fan and there’s a lot of value you can capture by directly adding value to the lives of your fans. This two-way street seems paved with music and while other creators can walk across it, it’s music that often acts as a springboard to growth and success.

Storytelling, a final word

Music drives the creator economy and permeates across all levels of social platforms. From Snapchat Stories to music subreddits, millions of people use social media every day to engage with music and musicians. As the Creator Economy continues to grow it’s the best storytellers that will reach the top. With a broad variety of available tools artists are primed to find, engage and connect with an audience that is just passionate, and sometimes even more passionate, as they are about their music. Let fans share in the story and capture the value they feel you’ve added to their lives.