SoundCloud is taking another step to capitalize on the power of superfans by entering the merchandise sales space with the launch of the SoundCloud Store.
This move follows previous fan-focused initiatives by the streaming platform, such as the introduction of the Fan-funded royalties Model, also known as user-centric streaming payment model, in 2022, and the introduction of the Fans tool last year that allows artists to send direct messages to their most loyal listeners.
SoundCloud and its CEO, Elijah Setonhave long recognized how superfans can increase consumption and revenue for artists. Seton highlighted this in a recent interview MBWPodcast by, He noted that superfans and the willingness to support artists financially have always been part of the music industry.
“Superfandom and willingness to pay is a role as old as music. Think of all the different examples of this – merch and live (events). Even in a download environment 80% of sales were generated by 20% of the fans,” said Seton.
The new SoundCloud Store is specifically geared towards these superfans. The SoundCloud Store allows select Next Pro artists to create exclusive merchandise and sell it directly to their followers.
The offering includes a range of merchandise, including limited edition t-shirts, hoodies and accessories. In addition, the store offers the Essentials Collection, a line of SoundCloud-branded merchandise. This collection includes t-shirts, hoodies and hats, all designed with the SoundCloud logo and wordmarks.
Initially, the SoundCloud Store will be open to users in the United States, Canada, and the European Union. Participation is currently limited to a select group of Next Pro artists who retain full rights to their merchandise.
The store started 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 led his Merch Hub. This centralized platform curates personalized merchandise recommendations based on users’ listening habits, making it easier to find and purchase artist merchandise. Previously, Spotify users could only discover merchandise through individual artist profiles or specific album pages.
Abroad, companies like HYBE rely on superfans to grow their business. The Superfan app from HYBE Versewhich sells artist merch and offers exclusive content subscriptions, recently reported a 17.4% year-on-year Sales jump due to high spending by fans.
In March Joon Choi, The president of Weverse said, “I think being a fan of someone/something, loving an intellectual property or an artist are universal feelings. Therefore, the growth potential in the superfan business and superfan economy is limitless.”
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