SoundCloud is making another move to capitalize on the power of superfans, foraying into merchandise sales with the launch of the SoundCloud Store.
The move follows the streaming platform’s previous fan-focused initiatives such as the launch of the Fan-Powered Royalties model, also known as the user-centric streaming payment model, in 2022, and the introduction of the Fans tool last year, which allows artists to directly message their most dedicated listeners.
SoundCloud and its CEO, Eliah Seton, have long recognized how superfans can drive consumption and revenue for artists. Seton highlighted this in a recent interview on MBW‘s podcast, noting that superfandom and the willingness to support artists financially have always been part of the music industry.
“Superfandom and willingness to pay is as old a role as there is in music. Think about all the different examples of this – merch and live [events]. Even in a download environment, 80% of the revenues were driven by 20% of the fans,” Seton said.
SoundCloud’s new store is designed to cater specifically to these superfans. The SoundCloud Store will allow a select group of Next Pro artists to create and sell exclusive merchandise directly to their followers.
It offers a range of merchandise that includes t-shirts, hoodies, and limited-edition accessories. Additionally, the store features the Essentials Collection, a line of SoundCloud-branded merchandise. This collection includes t-shirts, hoodies, and hats, all designed with SoundCloud’s logo and wordmarks.
Initially, the SoundCloud Store is accessible to users in the United States, Canada, and the European Union. Participation is currently limited to a select group of Next Pro artists who maintain full ownership of their merchandise rights.
The store launched with exclusive items from artists such as Wiz Khalifa, Denzel Curry, wolfacejoeyy, Bktherula, and Armani White.
SoundCloud’s entry into the merch market comes 10 months after Spotify introduced its Merch Hub. This centralized platform curates personalized merch recommendations based on users’ listening habits, simplifying the process of finding and purchasing artist merchandise. Previously, Spotify users were limited to discovering merch through individual artist profiles or specific album pages.
Overseas, companies like HYBE have been banking on superfans to grow their business. HYBE’s superfan app Weverse, which sells artist merch and offers exclusive content subscriptions, recently reported a 17.4% YoY jump in revenue, driven by strong fan spending.
In March, Joon Choi, President of Weverse, said: “I think being a fan of someone/something, loving an IP, and loving an artist is a universal emotion, so the potential for growth in the superfan business and economy is limitless.”
Music Business Worldwide
