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Direct-to-fan is a business model used by independent musicians, independent music labels, music marketing professionals, promoters, and others in the music industry. Direct-to-fan is also becoming a model used by the broad definition of artists, including comedians, visual artists, and other entertainers looking to build and leverage a fan community throughout their career.
The direct-to-fan model bypasses the major record label model that historically controlled radio, venue, and distribution channels, and lets the artist (or the team that supports that musician) create interest in their music directly with their fans, identify those fans, market directly to and develop relationships with those fans, sell directly to and monetize those relationships, and use those relationships to expand their fan base.
Foundation components of this model include music discovery sites, and direct-to-fan music sales, marketing, and business solutions.
Direct-to-fan models encourage engaging directly between the artist and their fans, keeping the fans engaged, knowing who they are (who, what, when, where, why), building the artist's brand, and developing the artist-to-fan relationship over time.
An early example of this method in the music industry was by the British rock band Marillion, who used the internet to connect with their fans to finance a North American tour in 1997 and a subsequent album in 2001, instead of signing to a record label. [1] In 2008, Alexis Petridis described the band in The Guardian as "the undisputed pioneers" of this practice. [2] It was also addressed by Michael Lewis in his book Next: The Future Just Happened . [3]
Some tools supporting direct-to-fan include: storefronts to sell direct-to-fan on band websites and on social networking sites such as Facebook or MySpace, Widget tools to embed sales, gig or event calendar, profile info anywhere including blogs, Marketing tools such as email marketing and messaging, Event tools, Central Content Management tools, Central Catalog Management tools for both digital and physical products, and digital delivery platforms that make it easy for you to sell direct from your website or social media by integrating with payment gateways, providing a checkout and automatically delivering music to fans via a download link.
More complete, one-place-to-manage-everything direct-to-fan solutions are beginning to emerge. They help the artist's team with fan management, brand management, sales, marketing, distribution, manufacturing, event management, merchandizing, warehousing, fulfillment, and more, all from one dashboard.
An example of a direct-to-fan solution would have online storefronts for their official band websites, Facebook, MySpace, blogs, etc.; Marketing solutions for email marketing, fan capture, fan messaging, and fan management; Label services including digital distribution to iTunes, Amazon, and other retail sites, CD and DVD manufacturing, custom merch, print services, graphic design and web services, warehousing and fulfilment, backend ecommerce and payment processing, and more.
Core applications that assist musicians in implementing a direct-to-fan approach include:
Companies that are delivering portions of the above direct-to-fan solution include:
Bandcamp, Bandsintown, Shopify, Cafe Press, CD Baby, Constant Contact, Music Glue, Nimbit, NoiseTrade, Pledgemusic, ReverbNation, TuneCore, Zazzle, GigRev.
Marillion are a British rock band, formed in Aylesbury, Buckinghamshire, in 1979. They emerged from the post-punk music scene in Britain and existed as a bridge between the styles of punk rock and classic progressive rock, becoming the most commercially successful neo-progressive rock band of the 1980s.
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
eMusic is an online music and audiobook store that operates by subscription. In exchange for a monthly subscription eMusic users can download a fixed number of MP3 tracks per month. eMusic was established in 1998, is headquartered in New York City with an office in London, and is owned by TriPlay.
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.
A street team is a term used in marketing to describe a group of people who 'hit the streets' promoting an event or a product. 'Street Teams' are promotional tools that have been adopted industry-wide as a standard line item in marketing budgets by entertainment companies, record labels, the tech industry, corporate brand marketers, new media companies and direct marketers worldwide. The music industry is now seeing a boom in the use of large street teams to reach out to fans and improve sales among the fewer, harder-to-reach fans internationally.
Independent music is music that is produced independently from commercial record labels or their subsidiaries, a process that may include an autonomous, do-it-yourself approach to recording and publishing. The term indie is sometimes used to describe a genre, and as a genre term, "indie" may or may not include music that is independently produced, and many independent music artists do not fall into a single, defined musical style or genre and create self-published music that can be categorized into diverse genres. The term ‘indie’ or ‘independent music’ can be traced back to as early as the 1920s after it was first used to reference independent film companies but was later used as a term to classify an independent band or record producer.
A talent manager is an individual who guides the professional career of artists in the entertainment industry. The responsibility of the talent manager is to oversee the day-to-day business affairs of an artist; advise and counsel talent concerning professional matters, long-term plans and personal decisions which may affect their career.
An unsigned artist, unsigned band or independent artist is a musician or musical group not under a contract with a record label. The terms are used in the music industry as a marketing technique. Bands that release their own material on self-published CDs can also be considered unsigned bands. Often unsigned bands primarily exist to perform at concerts.
Web-to-print, also known as Web2Print, remote publishing or print e-commerce is commercial printing using web sites. Companies and software solutions that deal in web-to-print use standard e-commerce and online services like hosting, website design, and cross-media marketing.
Nimbit, Inc. was a Massachusetts-based company offering sales & marketing services for independent musicians, independent record labels and other organisations, using a web-based, direct-to-fan system. This includes a virtual storefront, which allows users to sell music and merchandise on Facebook and other websites, and tools for users to perform fundraising campaigns.
New Music Economy is a term describing the emergent social, technical, political and economic context of the creative industries. This shift in context has been fueled by concurrent evolution within an ecosystem of interdependent technologies, institutions, and individuals; the result of which impacts the nature of creative property, identity, production, distribution and imagination.
Fan-funded music is crowdfunding for music. Often, fan-funded music occurs in conjunction with direct-to-fan marketing. Fans of music have the option to donate and collectively raise money with the goal of jump-starting the career of a given musical artist. The fan-funding of music occurs primarily through web-based services using a business model for crowdfunding. Fans are typically given rewards based on their monetary contributions.
gogoyoko.com was an online music store and social networking music website where artists could sell directly to their fans. The site offered free streaming of all tracks, which were subsidized with advertisements in the music store. The focus of the site was on independent music both from independent artists and labels and distributors working in the independent music sector. The aim of the site was to have artists paid fairly for the sale and distribution their music on the Internet, without having to go through a record label or digital aggregators.
Kerchoonz was a social networking website founded in April 2005 and launched live in June 2008. Kerchoonz has been described as "A modern Record Deal" for bands and artists. Music fans have access to music for free and the bands get paid for each stream listened to via an advertising share that they receive from the site. Bands can also sell their music directly from their profile player and set the price for their own download sales. Users can create free accounts in the following categories: Fan, Artist, Record Label, DJ, Industry Pro or Writer were connected to labels, managers, publishers, venues, vendors, promotors and more. It was the first company in the world that paid musicians for downloads and streams of their music via advertising revenue and via a subscription model. Kerchoonz was a global marketplace that connected bands and artists to record labels, managers, venues, vendors and offered an online shop for bands, allowing bands to sell their digital downloads and their physical CDs, T-shirts and gear through their own social networking profile on the site as well as in K-Ching, an on-line direct sale and auction marketplace. Kerchoonz was monetized via a subscription model, advertising model and commissions on transactions within the marketplace. Regular non-artist members can also sell used and new items on K-Ching and set up a store on their Kerchoonz profile. First online digital company that paid artist for streams
The Unsigned Guide is an online contacts directory and careers guide for the UK music industry. Founded in 2003, and first published as a printed directory, The Unsigned Guide became an online only resource in November 2011. It is produced specifically for emerging bands, artists, music managers, and the UK music industry and contains directory listings covering all aspects of the business from record labels, music publishers, PR companies, recording studios, managers to radio stations, venues, gig promoters, festivals and music distribution.
PledgeMusic was an online direct-to-fan music platform, launched in August 2009. It was started to facilitate musicians looking to pre-sell, market, and distribute projects; such as recordings and concerts. It bore similarities to other artist payment platforms as ArtistShare, Kickstarter, Indiegogo, Patreon, RocketHub and Sellaband.
Topspin Media is a technology company that provides direct-to-consumer retail and marketing software for musicians, filmmakers, artists, authors, and other content creators. It was founded in 2007 by Peter Gotcher and Shamal Ranasinghe. The Topspin application includes integrated tools for e-commerce, fan relationship management, marketing, and fulfillment of both digital and physical goods.
Bandsintown is a music website, which allows users to receive notifications about tours and bands playing in the user's area. It also has tools for artists to manage tour dates.
Symphonic Distribution is a digital music distribution company launched in late 2006 by Jorge Brea, in Tampa, Florida. Symphonic Distribution delivers music from independent record labels and musicians to online retailers such as Spotify, iTunes, Apple Music, Napster, Deezer, Pandora, Amazon, and Beatport.
Music Glue is a specialist e-commerce platform for the music business which allows artists to sell physical and digital music, merchandise, and event tickets in multiple currencies and languages direct-to-fan. The company is headquartered in London, with offices in New York and Sydney.