I was on a recent panel in Memphis, TN, for The Recording Academy called “Grammy GPS: A Roadmap for Today’s Music Business.” The topic of my panel was Direct-to-Fan (DTF) commerce. In preparation, I pored over data (anecdotal and empirical) from the last 3+ years of working with Artists, Labels and Managers, including recent data from our online DTF product Reverb Store that launched in January of this year.
The first thing that dawned on me was how much DTF commerce is already taking place, offline, in the form of the ubiquitous merch table at virtually every concert on the planet. The Artist Revenue Survey we conducted in 2008 revealed that more than 50% of our Artists total revenue came from playing live shows and selling merch and music at those shows.
It seems logical that we should consider the principals behind the merch table (offline DTF) if we’re going to be properly equipped to maximize DTF online. Core to that is understanding why fans buy products.
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