Spotify Launches Merch Hub to Boost Artist Revenue

Spotify has rolled out a new Merch Hub to help artists make more money beyond just streaming royalties. The hub recommends relevant artist merchandise to listeners based on their tastes.

In the Spotify app, fans can now browse a personalized store of merch from their favorite acts. Spotify aims to drive more sales by exposing users to products from artists they stream frequently.

The launch comes as Spotify reports merch is a major additional revenue stream for artists on their platform. Directly connecting artists and fans for merch purchases retains more value.

Spotify also saw record merch sales numbers last year in the week following Spotify Wrapped’s annual recap. Artists can offer Wrapped-exclusive merch deals in 2021 to further capitalize.

The new Merch Hub lives in the Spotify app and is accessible by searching “merch” or clicking its tile on the home screen. Users then see recommended merchandise like clothing, accessories, vinyl records, and more.

Products are suggested based on the listener’s music taste data and favorite artists. This targets merch to fans who will actually buy, increasing likelihood of purchase.

Essentially, Spotify has built a personalized artist merchandise store within their app. It lets you browse and buy band merch as conveniently as you stream songs.

This provides a huge opportunity for artists to generate revenue outside of streaming royalties. Music fans are prompted to browse your merch in an environment tailored specifically to their interests.

Artists can get their products on the Merch Hub by partnering with Shopify and connecting it to their Spotify For Artists account. Items already listed on Shopify will automatically appear to relevant users.

Given Spotify’s test run last Wrapped saw their biggest merch sales ever, the dedicated hub could drive even more purchases. Along with holiday deals, artists have a chance to close 2021 strong.

The convenience of in-app merch shopping removes friction for fans to support artists. Impulse buying is encouraged when browsing music and hearing new releases.

With physical music sales and downloads fading, merch stands out as a growth area for material revenue. Expect more digital platforms to follow Spotify’s lead in integrating merch with music.

Streaming will keep spearheading the business, but merch can help musicians thrive beyond pennies per play. Spotify’s new hub aims to unlock that spending directly from listening sessions.

If you’re an artist, make sure your merch is connected to Spotify ASAP. Fans are ready to shop, and Spotify is primed to put your products in front of them.