Music is the universal language that fans speak fluently. In fact, a recent Nielsen study found that 40 percent of U.S. consumers—those classified as fans—are responsible for 75 percent of music spending. These fans, who spend between $20 billion and $26 billion on music each year, could spend an additional $450 million to $2.6 billion annually if they had the opportunity to snag behind-the-scenes access to the artists along with exclusive content.
The study results, presented at this year’s South by Southwest (SXSW) festival in Austin, Texas, showed that the high level of spending from a relatively narrow group of music consumers is dominating the share of overall music spend. These big spenders have indicated that, at large, they’d be willing to pay even more for exclusive extras, like in-studio updates, real-time emails, pre-orders, limited editions, autographed copies, vinyl records and lyric sheets handwritten by the artist.
Different fans, however, have different preferences so Nielsen took a closer look at music fans, analyzing the different spending behaviors among each segment.