5 Things Music Managers Should Consider When Building Their Fan Databases

As a music manager, you’re about to navigate a crucial phase in the “superfan” era over the next 12 months. All potential players will reveal their strategies: startups will have to demonstrate their revenue models, partners will need to negotiate rights and terms over ancillary revenues, and fans will shape their own communities. Making the best decisions to capitalise on these emerging opportunities will undoubtably be taking up some of your time.

A key challenge is knowing which solutions will gain traction and where to commit your resources. From my conversations with industry professionals, I’ve observed varying levels of understanding and preparedness. However, there’s a consensus that fan data is key, and I anticipate a “fan data value” standard becoming an important consideration in any future negotiations. This standard can be summed up as:

Who owns which fan data, and how should the revenue from its exploitation be shared and recognised?

When looking at fan data as a ‘thing’ it’s crucial to consider not just the size of your fan database, but also its depth and usability — quality over quantity if you like. As always with these things the tendency to jump straight to selecting the fan tool misses an important step, which is asking “What am I getting into by assuming this responsibility?”

Here are five key points to help think through the challenges and to ensure your data is as valuable and high-quality as possible, these will be valid or persist no matter the partners you choose to work with.

Think About Fan Data As A Multi Faceted Beast.

It is more than a fans email address or personal contact details. It is the history of your fan interactions.

Spend some time thinking about how you are going to use it in future and then how you need to effectively store and track.

Treat this as crucial as safeguarding your artist’s instruments.

Ensure Legal Compliance and Establish Clear Data Rights

Understand and establish your legal rights to use your fan data, make sure it was collected under a privacy policy that gives you the rights.

Become knowledgable on the different data collection methods and consents. You don’t need to know this to a high level of detail but enough to engage in the conversation and ask questions.

Consider registering with regulatory bodies (e.g., ICO in the UK). My gut feel would be if you are considering data as an asset you should register to be on the safe side.

Remember: EU fines for misuse can reach €20m or 4% of global revenues.

Build Expertise in Data Management

Recruit team members with data management knowledge or partner with experts who can be your guide.

Avoid relegating it to a “technology” box; integrate it into your core business and operations as you would any other business asset.

Treat fan data with the same level of security as you would an album master.

Choose and Implement Fan Tools Wisely

Prioritise consistency in fan engagement tools.

Select tools that clearly show a path forward you can follow or precisely meet your needs.

Don’t be swayed by flashy front-end features; consider backend processes.

Limit the number of tools to reduce pressure on your team to learn multiple systems.

Prioritise Responsible Sharing

Demand clear documented data processes from platforms you work with.

Implement secure methods for sharing fan information; avoid emailing CSV files. This may seem quick and easy but is not secure.

One final thought for you to consider:

The dominant platform in this space may not be visible yet. Remember, there were seven years between Napster’s closure and Spotify’s launch. The ultimate winner will be the technology that enables fair business models for all parties and achieves widespread consumer adoption. While I don’t have a fully formed view on which platforms or players will dominate (as some key scenarios, like fan subscriptions on Spotify, still need to play out), I do know that there will be more than one winner. The coming business models will likely mirror the bifurcation of the music industry that has been discussed recently.

As you navigate these changes, stay informed, adaptable, and always prioritise the value of your fan relationships. Your strategic decisions in managing fan data today will shape your success in whatever happens tomorrow.

21st Oct 2024
Los Angeles