Fans are becoming increasingly interested in digital events. They want exclusive access to artist content for “premier fan” experiences. And they want greater authenticity from artists through deeper connections, shared interests and memorable interactions.
Music companies and artists looking to keep pace with their customers’ shifting preferences must find markedly different ways to engage fans and deliver the experiences they’re demanding.
The music companies that are part of or have partnerships with media and entertainment conglomerates are particularly well-positioned to integrate their artists and music across different channels and assets in ways that create new fans and expand relationships with existing fans.
Immersive experiences convert fanship to friendship
Fans increasingly are demanding the ability to watch live performances on their terms, on their schedule and from a location they choose.
Leveraging the metaverse, music and entertainment companies are starting to merge the real and virtual worlds to create new immersive experiences. These experiences feed fans’ desires to make the leap from fandom to friendship. Making friends, creating, and collaborating are ways that fans are demonstrating their desire for exclusivity, proximity, and authenticity to and from their favorite artists.
Streaming services allow fans to discover artists, but they hunger for more. In fact, 66% of social media users have discovered new artists on social media per the EY Fan Engagement in the Music Industry report. In response, artists are creating more exclusive content than ever to engage with their fan base, monetize acquired media channels and drive more traffic on their platforms.
Digital commerce and social media can generate new revenue streams
The next phase in the evolution of the internet, Web 3.0, sits on a foundation of decentralization, openness and more user interaction. Three new Web 3.0 technologies allow consumers to move from fans to stakeholders.
- Non-fungible tokens (NFTs). Creators have been releasing NFTs to merchandise unique and tradable digital assets.
- Music-enabling cryptocurrencies. Artists and music companies are exploring the capabilities of cryptocurrencies and blockchain in merchandising.
- Decentralized applications or programs (DAPPs). DAPPs operate on a blockchain or peer-to-peer (P2P) network of computers, outside the purview and control of a single authority.