“Superfan” has become a buzzword in the music industry, with growing excitement around the potential for superfan monetization. But what exactly is a superfan, and how does monetization in this space really work?
The Rise of the Superfan
At the beginning of 2024, industry leaders like UMG CEO Lucian Grainge and Warner Music CEO Robert Kyncl have made it clear that monetizing superfans will be a primary focus this year. Spotify, too, is jumping on the trend, announcing plans to create “superfan clubs” as part of their offerings.
Goldman Sachs recently increased its estimate for the superfan monetization market to $4.5 billion, up from $4.2 billion just a year earlier. With projections like these, it’s no surprise that everyone is talking about superfans. But what defines a superfan, and what makes this group so valuable?
Defining the Superfan
The definition of a superfan varies depending on who you ask. Amazon Music for Artists describes superfans as a “small, but extremely valuable, subset of your most passionate fans.” These listeners are responsible for nearly a third of an artist’s total streams and are highly likely to keep listening in the future.
Spotify, in its own way, defines them as “super listeners“—fans who may only make up 2% of an artist’s monthly listeners but account for over 18% of monthly streams and more than half of an artist’s merch purchases.
SoundCloud’s July 2022 report, “Building a Fan Economy with Fan-Powered Royalties,” showed that 42% of income for artists better off under the Fan-Powered Royalties (FPR) model came from superfans, even though these fans only made up 1.9% of their total audience.
Luminate adds another layer, defining superfans as those who engage with artists and their content in five or more different ways. According to their data, 19% of U.S. music listeners can be categorized as superfans. These fans are 54% more likely to be the first to discover new music, 59% more likely to desire a personal connection with artists, and 43% more likely to participate in artist communities. Most notably, they spend 80% more per month on music activities than the average listener.
MIDiA Research also highlights the importance of superfans, noting a 4.6% increase in physical revenues in 2023, reversing the decline seen in 2022. This shift, they argue, reflects the industry’s strategic focus on superfans, contributing to a 15.5% growth in expanded rights revenue—largely from monetizing an artist’s brand through merchandise, sponsorships, and live performances.
At FanCircles, we’ve seen firsthand how engaging with superfans through dedicated, artist-branded platforms can drive these kinds of results.
“Superfans are the lifeblood of any artist’s career,” says Kevin Brown, Founder and CEO of FanCircles.
“They are the ones who truly connect with the artist’s vision, and they are willing to support them in ways that casual listeners won’t. That’s why it’s crucial to give them a space where they feel valued and engaged.”
The Scale of the Superfan Opportunity
Goldman Sachs estimates that the addressable market for superfan monetization could reach $4.5 billion, assuming that 20% of music listeners are superfans willing to pay double what the average listener spends on music.
By 2025, they predict that 10% of this market will be captured, with 60% of it realized by 2030. This translates to $3.3 billion in incremental revenue or a 13% uplift in paid streaming revenues by 2030.
This revenue potential is driving record labels, artist managers, and digital service providers (DSPs) to experiment with new monetization strategies. Some are developing dedicated superfan apps, while others are introducing premium tiers on existing streaming services. These initiatives aim to cater to superfans’ willingness to pay more for exclusive content and experiences.
“FanCircles is uniquely positioned in this market because we focus on creating individual, artist-branded platforms,” says Brown. “Unlike multi-artist platforms like Weverse and Fave, which serve multiple artists under one umbrella, FanCircles empowers artists to own their space entirely. This allows for a deeper connection with fans, as the entire experience is tailored specifically to one artist’s brand and vision.”
How Major Labels Are Monetizing Superfans
Both Universal Music Group (UMG) and Warner Music Group (WMG) are actively pursuing superfan monetization strategies.
UMG CEO Lucian Grainge has been advocating for DSPs to adopt “artist-centric” models, with a strong focus on superfans. In 2024, Grainge emphasized this approach, stating that UMG is in advanced discussions with platform partners and is building in-house capabilities to create experiential, commerce, and content offerings for superfans.
One of UMG’s significant moves was a 10-year agreement with HYBE, the South Korean company behind BTS and SEVENTEEN. HYBE’s Weverse platform, which exceeded 10 million monthly users in 2023, will now be supported by UMG’s exclusive distribution rights. Weverse is a prime example of a superfan platform, offering music videos, live streams, and merch, all within a dedicated space for fandom.
Meanwhile, Warner Music Group, under CEO Robert Kyncl, is also heavily investing in superfan initiatives. Kyncl highlighted the importance of deeper relationships between artists and superfans in his 2024 New Year note. One of WMG’s key projects is the development of an app specifically for superfans, which is expected to launch later this year. Additionally, WMG has invested in Fave, an AI-powered superfan engagement platform that has already attracted fandoms like Taylor Swift’s Swifties and the BTS ARMY.
Why Single Artist Apps Work Better Than Multi Artist Apps
While platforms like Weverse and Fave have found success in creating multi-artist environments, FanCircles takes a different approach with its one-artist-per-app model. This strategy is rooted in the belief that superfans are most engaged when the entire experience is tailored specifically to their favorite artist. In contrast to multi-artist platforms, where attention is divided among multiple acts, single-artist apps create a focused, immersive environment that reinforces the artist’s brand and deepens the fan connection.
FanCircles’ approach contrasts sharply with previous attempts by tech giants like Apple and Facebook to create multi-artist platforms. Apple Connect, part of Apple Music, was designed to be a social platform where fans could follow multiple artists and receive updates directly from them. However, it struggled to gain traction and was ultimately shut down in 2018. The main issue was that the platform failed to offer a compelling reason for fans to engage, as the experience was diluted across too many artists.
Similarly, Facebook’s attempts to cater to the music industry with artist-focused features have largely fallen flat. The social media giant introduced several tools aimed at helping artists connect with their fans, but these efforts never fully resonated with users. The platform’s broad, multi-artist approach did not provide the deep, immersive experience that superfans crave, leading to lower engagement and eventual discontinuation of many of these features.
“Apple Connect and Facebook’s failed attempts highlight a key lesson in superfan engagement: a one-size-fits-all approach doesn’t work,” explains Brown. “Superfans want something special, something that feels like it was made just for them and their favorite artist. That’s why single-artist apps are so effective—they offer an intimate, personalized experience that simply isn’t possible on multi-artist platforms.”
FanCircles’ single-artist model is designed to provide artists with complete control over their brand and fan interactions. Unlike Weverse and Fave, where artists share space with others, FanCircles ensures that an artist’s app is entirely their own. This exclusivity allows for more targeted content, direct communication, and a sense of belonging among fans. It’s a space where superfans can gather, interact, and feel closer to the artist than ever before.
“By focusing on one artist per app, we eliminate the noise and distraction that comes with multi-artist platforms. This approach not only enhances the fan experience but also empowers artists to fully express their creativity and connect with their audience on a deeper level.” says Brown.
The success of FanCircles’ model is evident in the strong engagement and monetization results it delivers. Artists using FanCircles are able to cultivate a dedicated fanbase that is more likely to purchase merchandise, attend concerts, and subscribe to premium content. This deep connection translates into real revenue, proving that a focused, single-artist platform is the key to unlocking the full potential of superfan monetization.
As the music industry continues to evolve, the importance of catering to superfans will only grow. Platforms that offer a personalized, exclusive experience are best positioned to capitalize on this trend. FanCircles is leading the way, providing artists with the tools they need to build lasting relationships with their most dedicated fans.
How Streaming Services Are Monetizing Superfans
Streaming services are uniquely positioned to capitalize on superfan monetization due to their massive scale and direct access to listeners. Spotify, for instance, is reportedly working on a “supremium” tier that will offer HiFi audio and other exclusive features to superfans. They also plan to introduce “superfan clubs,” where fans can access premium audio content and other perks, potentially behind a paywall.
TIDAL, known for its HiFi audio, has a history of focusing on the artist-fan connection. Although they discontinued their Direct Artist Payout (DAP) program, TIDAL has partnered with UMG to explore artist-centric payout models that recognize and reward superfans.
At FanCircles, we understand the value of superfans and the importance of offering them exclusive experiences. Our platform enables artists to create their own superfan clubs, complete with exclusive content, merch, and direct communication tools like push notifications and live streaming. By giving artists the tools to engage with their most dedicated fans, we help them unlock new revenue opportunities and strengthen their fan relationships.
The Future of Superfan Monetization
As the music industry continues to shift towards superfan-focused strategies, the opportunities for monetization will only grow. Whether through dedicated superfan apps, premium streaming tiers, or innovative new platforms, superfans represent a significant revenue stream that the industry is just beginning to tap into.
“Superfan monetization is not just a trend; it’s the future of the music industry,” says Kevin Brown. “At FanCircles, we’re committed to leading this evolution by providing artists with the tools they need to connect with their superfans and build sustainable, long-term careers.”
It’s clear that the superfan phenomenon is more than just a buzzword—it’s a transformative force in the music industry, and FanCircles is at the forefront of this exciting new frontier.
