By Simon Scott, Founder & CXO, Push Entertainment
A collaborative approach to fan data will lead to better outcomes
With direct-to-fan communication and commerce now becoming a real and significant revenue stream, those of us who work in fan engagement are seeing a shift in how value is created and distributed.
At the heart of this change lies a critical asset: fan data. The new oil for the music industry.
Cirkay was born out of Push’s years of experience in the fan engagement world. Push is not a data company per se, but we do help our clients store and move their consumer data. We are an ISO certified firm and move millions of records every year. At the core of this fan data is the common email address, and over the last twenty years, we have seen it grow and thrive, fall out of favour, and now return as the centre of attention.
However, a tug-of-war is emerging over the ownership and use of this valuable resource.
The Risk of Division
If we allow fan data to become a battle, we risk undermining the very objective we are all striving for which is a better experience for fans and artists.
Remember, a better experience = more revenue = a bigger pie.
Fan engagement suffers when there’s fragmentation in strategy and execution. If fan data is the new oil, then a lack of collaboration will stop the flow and will leave the artists and fans as the ultimate losers. That seems like a crazy outcome. Do we not all work in this industry because we love music first and foremost? Are we not all fans?
Differing Perspectives
Record Labels: Have invested significant time, money, and expertise into building and maintaining fan databases. It’s expensive to do it properly. Their marketing teams work tirelessly to create engaging content, run campaigns, and analyse data to grow these fan bases. This investment is substantial and often under appreciated.
Managers: Are the guardians of the artist’s career and brand. They rightly believe that the connection with fans is inherently tied to the artist, and therefore, the data should be under their control. They are also often on the front lines of fan interaction, gaining invaluable insights.
Platforms: Seek to insert themselves into the ecosystem and create their own value directly with the fans whom they regard as their consumers.
Why Not Collaborate?
Instead of viewing this as a zero-sum game, let’s consider a collaborative approach that recognises the investments and needs of both parties, examples of things to think about include:
The future of our industry lies in how well we can collaborate to nurture and leverage our fan relationships. Let’s not let division undermine this valuable asset.
- Transparent Value Attribution: Develop models that clearly show how investments in marketing and data infrastructure by either labels or managers contribute to fan base growth and engagement.
- Shared Access Protocols: Create systems where both labels and managers have appropriate access to fan data from platforms and each other, with clear guidelines on usage.
- Revenue Sharing Models: Design fair models that reflect both the label’s investment in building the fan base and the manager’s role in maintaining artist-fan relationships.
- Data Portability Standards: Establish industry standards for data portability that protect both label investments and artist interests as careers evolve.
The Opportunity Before Us
By working collaboratively, we have an opportunity to create a more vibrant, efficient, and profitable music ecosystem. Labels can see better returns on their marketing investments. Managers can leverage sophisticated tools and insights to grow their artists’ careers. And most importantly, fans will benefit from more coherent, engaging experiences with the artists they love.
The future of our industry lies in how well we can collaborate to nurture and leverage our fan relationships. Let’s not let division undermine this valuable asset.
Moving Forward Together
As I write this, I get more convinced that the first place to start is with ‘Data Portability Standards’ — nice and neutral, of value to everyone.
If you know me and work for one of the industry bodies, expect to hear me banging on about this the next time I see you. If data can be handed from one party to another as an artist’s career progresses, a standard would help preserve as much of the value created as possible for all parties.
If these challenges motivate any of you to start thinking about the same challenges and you want to get involved in helping solve them, that is brilliant. Let me know simon@cirkay.com and let’s get talking.
Check out Simon’s Medium for more viewpoints: https://medium.com/@simon_scott