The next time you binge on a guilty pleasure on Spotify, maybe you shouldn't feel so bad after all: Your streams could be helping artists in a new way. Fans First is a beta program at Spotify that targets super fans with concert ticket pre-sales, limited edition merchandise, and other exclusive perks. Not surprisingly, homing in on the music fans most likely to click a "buy" button is an effective strategy.
"We're generating tens of millions of dollars in gross revenue for these artists," says Shane Tobin, who runs Spotify's creator insights and activations. A remarkable 40% of recipients are opening these Fans First emails on average, according to Tobin.
So far, the pre-sales alone are generating an average of $40,000 per campaign. And many of the merch items–like a green vinyl EP by The Strokes–sell out quickly. Other artists who have tried the program include Vince Staples, Red Hot Chili Peppers, and Run The Jewels. And the list is growing.