INTERACTIVE PRE-SALES

& CROWD-SOURCED FUNDING

A SUPER FAN MUSIC DESTINATION
There is up to $2.6B in incremental
revenue left on the table by the US
music industry every year.
 CONSUMPTION
IS AT AN ALL TIME HIGH

+10% +176%
TIME SPENT GROWTH
LISTENING ON IN AMOUNTS
SMARTPHONES PLEDGED
75% OF ALL SPENDING ON MUSIC
COMES FROM FANS

WITH THE REMAINING 25%

FROM CONSUMERS

40% OF MUSIC BUYERS ARE FANS

WHO SPEND $20-26 BILLION A YEAR
FANS, CONSUMERS & PLEDGERS
FANS & CONSUMERS PLEDGEMUSIC

AFICIONADOS ACCOUNT FOR 34% OF ALL MUSIC SPENDING

WHAT FANS ARE SPENDING TODAY
$1004

$402
$344
$182
BIG BOX FANS DIGITAL FANS AFICIONADOS PLEDGERS
$68
ALL OTHER CONSUMERS SPEND $68 ON MUSIC PER YEAR
WHO WE ARE
 WE BEGAN AS
A PLACE WHERE
FANS & ARTISTS
CONNECTED
 A PLACE WHERE
FANS WOULD HELP
ARTISTS FINANCE
ALBUMS
EPs
BOX SETS
& TOURS
 86%
OF OUR CAMPAIGNS
HAVE BEEN
SUCCESSFUL
HOW WE DO IT
 FROM D.I.Y.
TO MAJOR LABEL –
THE ALBUM RELEASE
CYCLE HAS THREE KEY
MILESTONES
 Have you
Preorder Buy my bought
my album! album! my album
yet?!

D2C
ITUNES
AMAZON
RETAIL
 Have you
Preorder Buy my bought
my album! album! my album
yet?!

D2C
ITUNES
AMAZON
RETAIL
 Have you
Preorder Buy my bought
my album! album! my album
yet?!

D2C
ITUNES
AMAZON
RETAIL
ALL OF THESE MESSAGES
LEAD TO RETAIL –

WITH ONLY A SMALL FOCUS

ON DIRECT TO CONSUMER
 SALES THROUGH
ITUNES, AMAZON & RETAIL
=
RETURN CUSTOMERS
FOR ITUNES, AMAZON & RETAIL
 SALES THROUGH
PLEDGEMUSIC
=
RETURN CUSTOMERS
FOR THE ARTIST
& THE LABEL
 UNLIKE D2C,
ITUNES, AMAZON OR RETAIL,

PLEDGEMUSIC IS
A DIRECT-TO-FAN DESTINATION
WHERE ARTISTS & LABELS
KEEP THEIR DATA
 A PLEDGEMUSIC
CAMPAIGN GIVES YOU
MORE MARKETING TIME
– NOT LESS
 VERY LITTLE TRADITIONAL ..AND
MARKETING TAKES PLACE REQUIRES
A FINISHED
DURING THE CREATIVE PRODUCT
PROCESS... 1-3 MONTHS OUT

DEMOS/PRE-PRODUCTION/RECORDING/MIXING/MASTERING/ARTWORK/MANUFACTURING/PRE-SALES/STREETDATE/TOUR
 VERY LITTLE TRADITIONAL ..AND
MARKETING TAKES PLACE REQUIRES
A FINISHED
DURING THE CREATIVE PRODUCT
PROCESS...
1-3 MONTHS OUT

DEMOS/PRE-PRODUCTION/RECORDING/MIXING/MASTERING/ARTWORK/MANUFACTURING/PRE-SALES/STREETDATE/TOUR

OUR MARKETING BEGINS

WHEN THE CAMPAIGN BEGINS
AND DOES NOT NEED A FINISHED PRODUCT
3-6 MONTHS OUT
 EACH PART OF THE
RECORDING PROCESS
BECOMES A PART OF
THE MARKETING PROCESS
TRADITIONAL
RELEASE
DIRECT-TO-FAN VS.
TRADITIONAL
 TRADITIONAL WAY
LABEL WHO SELL IT
RECORD TAKES RETAIL TO THE
LABEL FINISHED AMAZON RECORD LABELS
PRODUCT ITUNES CUSTOMERS

PLEDGEMUSIC WAY
RECORD MARKET PROFITABLE
RELEASE PROJECT RETAIL THEN
LABEL AS IT’S BEING GOES TO AMAZON MARKETED
& ARTIST MADE RETAIL ITUNES TO ALL

FANS
FREE SOCIAL POSTS
VS.
PLEDGEMUSIC
EXCLUSIVES
AND UPDATES
SOCIAL & DISCOVERY
 FANS WANT TO CONNECT
WITH THEIR FAVORITE ARTISTS

% WHO AGREE THEY WOULD LIKE A DEEPER CONNECTION

THIS WAS A
‘FREE’ POST
ON TWITTER
1,188
RETWEETS
NO PRE-SALES
POSSIBLE
THIS WAS A
‘FREE’ POST
ON FACEBOOK
1,665 LIKES
NO PRE-SALES
POSSIBLE
 TRADITIONAL SOCIAL MEDIA
UPDATES ARE NOT MONETIZED
 PLEDGEMUSIC SOCIAL
MEDIA UPDATES ARE MONETIZED
FROM DAY ONE OF THE CAMPAIGN
 PLEDGERS ACROSS THE
SITE SPEND AN AVERAGE OF

$55
PER TRANSACTION
ARTIST
EXCLUSIVE
MORE ARTIST
EXCLUSIVES

EXCLUSIVES
BRING IN
PRE-SALES
PLEDGER-ONLY
MONETIZED
UPDATES:
ANOTHER
PLEDGER-ONLY
UPDATE
YET ANOTHER UPDATE FOR
PLEDGERS-ONLY THESE
UPDATES,
ALONG WITH
21 MORE,
LED TO 5,092
PLEDGES
DURING THE
CAMPAIGN

THE LAUNCH
TWEET & FB
POST
ACCOUNTED
FOR THE
INITIAL
2,433
EXCLUSIVES & UPDATES
=
CONTENT THAT
IS SHARED SOCIALLY,
ENHANCING DISCOVERY
ENHANCED DISCOVERY

Artist creates
an update
ENHANCED DISCOVERY

Artist updates
auto-post to social
networks
 ENHANCED DISCOVERY
Fans elect to
automatically
share updates
to their social
networks
 FANS SAY THEY WILL CONTRIBUTE
TO A CAMPAIGN FOR EXCLUSIVE CONTENT
LIKELY VERY LIKELY

31%
35%
32%
37% 21%

19%
AFICIONADO FANS DIGITAL FANS
15%
BIG BOX FANS
12%
OTHERS
 FANS ARE WILLING
TO PAY FOR CONTENT & ACCESS
PRE-ORDER A DIGITAL COPY OF THE ALBUM (AVAILABLE AS
DOWNLOAD), AND GET ACCESS TO EXCLUSIVE CONTENT WHILE
FAVORITE BAND IS RECORDING NEW ALBUM FOR $15
+ PRE-ORDER A CD SIGNED BY THE ARTIST FOR $20
+ LIMITED EDITION SIGNED POSTER FOR $30
+ SIGNED COPY OF THE VINYL RECORD FOR $35
+ LIMITED EDITION T-SHIRT FOR $45
+ COPY OF HAND-WRITTEN LYRIC SHEETS FOR $50
+ (2) TICKETS TO A LOCAL CONCERT FOR $150
 FANS ARE WILLING
TO PAY FOR CONTENT & ACCESS
PRE-ORDER A DIGITAL COPY OF THE ALBUM (AVAILABLE AS
DOWNLOAD), AND GET ACCESS TO EXCLUSIVE CONTENT WHILE
FAVORITE BAND IS RECORDING NEW ALBUM FOR $15

53%
38%
34%
22%
AFICIONADOS DIGITAL FANS BIG BOX FANS OTHERS
 WHY PARTNER
WITH PLEDGEMUSIC?
 PLEDGEMUSIC
RAISES MORE THAN
JUST MONEY
+ FAN CONNECTION
+ EXCLUSIVITY
+ GAMIFICATION
+ REALTIME UPDATES
+ KEEP COMMUNITY ALIVE
POST-PURCHASE
PLEDGEMUSIC SAVES
YOU MONEY
ITUNES = 30% FEE
AMAZON = 30%-50% FEE
= 15% FEE
PLEDGEMUSIC WANTS
YOU TO KEEP YOUR
USER INFO
ITUNES = 0% DATA
AMAZON = 0% DATA
= 100% DATA
 YOUR ARTISTS
ARE STILL
CHART ELIGIBLE
GLOBALLY*

*PER CERTAIN RULES IN EACH COUNTRY.

 PLEDGEMUSIC
MINIMIZES RISK
BY GETTING YOUR ALBUMS
‘CLOSE TO’ OR ‘IN PROFIT’
BEFORE THEY ARE FINISHED
 82%
OF PLEDGERS
BUY A PHYSICAL
PRODUCT
PRE-RETAIL!
 PLEDGEMUSIC
IS A DESTINATION
LIKE ITUNES OR SPOTIFY,
CONSUMERS COME TO ENGAGE
WITH A VARIETY OF ARTISTS,
AND NOT JUST A SINGLE ALBUM OR SONG.

THE MORE ARTISTS YOU HAVE ON

PLEDGEMUSIC, THE MORE THAT BENEFIT.
 PLEDGEMUSIC
IS NOT JUST
A PLATFORM
WE ARE A TEAM WHO WORKS WITH YOU
TO MAKE YOUR RELEASES WORK
FOR ALL INVOLVED
 IMPORTANT TAKEAWAYS
1. FANS WANT A MORE PERSONAL RELATIONSHIP
WITH ARTISTS

2. THERE IS UP TO 2.6 BILLION IN INCREMENTAL

REVENUE LEFT ON THE TABLE EVERY YEAR
BECAUSE FANS CAN’T BUY WHAT THEY WANT

3. INCREMENTAL REVENUE CAN BE TAPPED BY

ARTISTS, LABELS AND BRANDS
 IT’S JUST
GETTING STARTED:
ADDITIONAL STATS
INTEREST IN DIRECT-TO-FAN/CROWD FUNDING
AFICIONADO FANS, DIGITAL FANS, AND AMBIVALENT CONSUMERS EXPRESSED THE MOST INTEREST IN PARTICIPATING
IN PLEDGING. AFICIONADO FANS SIGNIFICANTLY HIGHER LIKELIHOOD TO HAVE USED DIRECT-TO-FAN/CROWD FUNDING
IN THE PAST OR TO HAVE USED IT FREQUENTLY.
INTEREST IN DIRECT-TO-FAN/CROWD FUNDING: BY AGE
INTEREST IN DIRECT-TO-FAN/CROWD FUNDING AMONG THOSE 44 AND YOUNGER WAS CONSISTENT ACROSS AGE
GROUPS, THOUGH THOSE 25-34 WERE MORE LIKELY TO REPORT HAVING PARTICIPATED IN A PLEDGE CAMPAIGN.
DISINTEREST IN PLEDGING WAS HIGH AND PRIOR AWARENESS WAS LOW AMONG THOSE 45+.
LIKELINESS TO PLEDGE GIVEN CIRCUMSTANCES
AFICIONADO FANS WERE SIGNIFICANTLY MORE LIKELY TO CONTRIBUTE TO A DIRECT-TO-FAN/CROWD FUNDING
CAMPAIGN IN MOST CIRCUMSTANCES, WITH THE EXCEPTION OF IF A FRIEND OR FAMILY MEMBER WAS A FAN AND
INVITED THEM, OR IF THE BAND WAS ESTABLISHED.

SCENARIOS IN WHICH ONE IS LIKELY TO PLEDGE

 PLEDGE AMOUNTS
AMBIVALENT MUSIC CONSUMERS ARE WILLING TO SPEND MONEY ON DIRECT-TO-FAN/CROWD FUNDING CAMPAIGNS,
WITH AN AVERAGE MAXIMUM PLEDGE OF $67, AND AN ANNUAL MAXIMUM OF $116. WHILE AFICIONADO FANS SAID
THEY WERE LIKELY TO SPEND LESS PER CAMPAIGN, THEY SAID THEY’D LIKELY PLEDGE MORE MONEY PER YEAR,
INDICATING A POTENTIAL TO CONTRIBUTE TO MORE CAMPAIGNS.
 PLEDGE AMOUNTS: BY AGE
WHILE AVERAGE PLEDGES FOR THOSE 25+ WERE SIMILAR, THOSE 35-44 REPORTED AN ANNUAL MAXIMUM 66%
HIGHER THAN THE SECOND HIGHEST ANNUAL MAXIMUM, INDICATING INTEREST IN PERHAPS PLEDGING MORE OFTEN
TO CAMPAIGNS.
 THANK YOU
FOR MORE INFO, PLEASE CONTACT:
BENJI@PLEDGEMUSIC.COM
@BENJIKROGERS

Additional info from Nielsen, PledgeMusic & SXSW study:

“THE BUYER & THE BEATS: THE MUSIC FAN AND HOW TO REACH THEM”
Presented at SXSW 2013