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With Superfan Streaming on the Horizon, How Much Extra Revenue Awaits?
Superfan music streaming is coming. How much money is in it? We calculate how much extra revenue these subscriptions could bring in for the industry.
Bernstein’s “Superfan Economics 101” report argues that a super-premium tier will help music streaming platforms achieve “sustained success in an increasingly competitive environment.” Analyst Annick Maas sees superfan-focused products as a function of the shift from mass consumption to direct-to-consumer tactics. Reaching out to smaller subsets of a larger audience, he writes, allows a streaming platform to “create a sense of belonging for its subscribers” and increase loyalty and engagement. Amazon Prime now inserts ads in movies, and Netflix and Hulu offer a low-cost, ad-supported option to make their products palatable for more price-conscious consumers.
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