Fans who show extreme passion and spend more money are extremely valuable to artists and the music industry. These so-called “superfans” are willing to spend more than the average fan on things like merchandise, albums, and concert tickets. They account for a significant portion of many artists’ revenue.
Music streaming services are now exploring ways to target and monetize these superfans more effectively. Universal Music Group has proposed an “artist-centric” model that would increase revenue from streaming subscriptions catering specifically to superfans.
A report by Luminate found that 15% of the U.S. population can be considered superfans. These superfans spend 80% more on music each month compared to the average music listener. They are more likely to purchase physical albums like vinyl and CDs. Younger listeners like Millennials and Gen Z also spend more on music.
Among genres, K-Pop fans spend the most – 75% more than average. Afropop/Afrobeats fans spend 121% more. EDM fans spend over 63% more.
Goldman Sachs estimates that if 20% of paid subscribers were classified as superfans and willing to pay double, it could mean an additional $4.2 billion in annual revenue for the music industry. This shows the large untapped potential of targeting and monetizing superfans effectively.
