Everyone wants to monetise fandom – but we must fix fan data first

In recent years, the music industry has turned its focus to engaging superfans, and it is no surprise – fandom has already proven lucrative. Expanded rights – which includes merchandise and other fandom monetisation opportunities – is a fast-growing sector, growing by 16.4% in 2024 to reach $4.1 billion in revenue (source: MIDiA Research Recorded Music Model 03/25). It follows that there is a growing desire among labels to control their fan data, rather than rely on third-party platforms, as they focus on developing core fanbases. However, there is little education surrounding how to control it, the role that fan data can play in the industry, and most importantly, its current limitations.

Why fan data is more crucial than ever

Fan data tracks what an artist’s fans are listening to, who is most engaged, as well as where and how fans are engaging with the artist, unlocking insight into which markets artists and labels should focus on. Understanding an artist’s fanbase and how to monetise it provides innumerable value as streaming revenue growth slows down. As current social media metrics become less valuable for knowing who an artist’s superfans are, artists and their teams seek more specific insights like active versus passive engagement, identity resonance, and even understanding fans beyond music taste.

The industry is picking up on this – a growing number of platforms like Levellr and Openstage have emerged to help artists gain more control over their data and understand their fanbases more granularly. In addition, established platforms like Soundcloud are introducing tools for artists to learn about and interact directly with their superfans. This includes building more  psychographic delineations of fans rather than just demographic – which is important to build a sustainable fan monetisation strategy through scenes. Artists and labels need to function more like branding agencies when thinking about their audiences, building complete profiles of who fans are, what they value, and what they are interested in beyond music. However, fan data is currently so siloed that it is nearly impossible to consolidate data from across platforms, holding back these efforts.

Fan data strategy is still misunderstood

Data fragmentation across platforms is a constant hurdle for artists who want a cohesive idea of who their fans are. Even with the growing long tail of fan CRM platforms advertising that artists can control their data, there is no one platform that provides everything, including ticketing, social, merchandise sales, mailing list management, and streaming metrics. Furthermore, many of these data-focused platforms only give artists control over their data until the artist leaves the platform – at which point the platform retains the data for its own use.

The growing number of platforms where artists interact with their audiences leads to another risk – platform fatigue among fans. Many fans are splitting their attention between a selection of artists rather than one superstar, making it unlikely for them to join a platform for a specific artist. Moreover, consumers are beginning to move towards more gated communities (e.g., Discord) rather than legacy platforms, making fandom all the more difficult to track. While established fan platforms like South Korea’s Weverse have proven successful, this cannot easily be replicated in the West. Part of why Weverse is so widely adopted by K-pop superfans is the relative lack of access to K-pop artists via other social media. Meanwhile, Western artists have long been taught to be present across all social platforms, and as more artists desire to own their relationship with their fans, it is highly unlikely for them to cut off any means of communication.

Yet the biggest issue plaguing the industry regarding fan data is simply a lack of education. Data-driven fan monetisation is a relatively new phenomenon, meaning that there are few precedents surrounding data transparency and fan data strategy. While other aspects of the industry have established language and standards, there is little consensus on how artists and labels should gather and implement data. Further, data is fragmented even on the industry side, as labels and managers typically receive different datasets and can be reluctant to share freely.  In Water & Music’s 2024 fan data survey, 18% of those surveyed were unsure how their companies were collecting artist and brand fan data. Artists and labels need more resources to make informed decisions surrounding fan data, but finding these resources is easier said than done.

Fan data is a valuable asset for building a sustainable fanbase and engaging with superfans, but it currently represents a lose-lose situation. Artists and labels can make their own platforms to control their fan data (as Warner Music Group was rumoured to be experimenting with), but risk low uptake due to platform fatigue. Or they can rely on third-party platforms and relinquish data control. Ironically, this lose-lose situation exists because data is so valuable – incentivising the platforms and players which hold it to keep it close to their vests. To grow the pie for everyone, fan data should move with the artist through their career rather than be tied to a specific company or platform. As a growing number of artists seek to reclaim control over their fans’ data, and labels need it to fuel their fandom monetisation strategies, the industry must evolve towards a more transparent and informed approach to fan data.