The oncoming fandom crisis – Music Industry Blog

The Chinese authorities’ crackdown on fandom represents the first major growing pain for the global fandom economy. Tencent Music Entertainment (TME) will likely be the bellwether of this shift, with two thirds of its revenues coming from non-music (i.e., fandom) related activities. But this is more than just about China – it shines a light on the dark underbelly of the global fandom machine. The companies behind K-pop and Idol acts industrialised fandom by leveraging, and even exploiting, fan psychology to massive global businesses that trade upon extracting every possible ounce of spend from fanbases. The China crackdown should act as a wakeup call for the global music market. 
The industrialisation of fandom
Regular readers will know that MIDiA has focused on fandom analysis and research for a number of years now, looking at it across all forms of entertainment. The reasons we believe it is so interesting in music is because Western streaming services monetise consumption rather than fandom, leaving both passion and spent on the table
The Chinese music apps illustrate just how much more can be achieved when experiences are built around the music, rather than simply relying on music to always be the experience. Alongside this, the rise of K-pop, which leans heavily on the Japanese Idol model, shows how much fanbases can be willing to support their favourite artists, particularly in terms of both spend and passion. But, as exciting as these models are, they have also been underpinned by the temptation to push fans’ spending and obsession further and further.
Even Western artists are getting in on the act. When Taylor Swift encouraged her fanbase to go and buy the re-recorded version of Fearless, she was looking for their support in her old master recordings ordeal. But who really needed the $50 for a vinyl copy most, Swift or her fans? 
This industrialisation of fandom has actually weaponised it, and, in doing so, puts its very essence at risk.
The oncoming fandom crisis
A fandom crisis is coming. Fandom is far more meaningful and profound for fans than mere consumption. It is also far harder to measure – in fact, it is only the effects of fandom that can be measured (i.e., merch sales, comments, likes, etc.). Fandom is rooted in human psychology. It is about identity, belonging and self-expression. Things that often matter more to younger people than anything else, especially teens in their formative years. It is no coincidence that the industrial fandom machines are primarily built around younger consumers. The Chinese government’s decision to limit fandom, in part because of its negative social impacts, is an extreme move, but it could also act as an ice breaker for regulatory scrutiny in Western markets. 
The fandom crisis goes beyond music
The oncoming fandom crisis is neither confined just to Asia, nor just to music. In fact, huge swathes of the global social economy are built on exactly the same dynamics. TikTok, Instagram, YouTube, Twitch – all of these platforms exploit the creator / fan relationship and have constructed sophisticated monetisation frameworks around them. The sophistication does not so much lie in payment methods or technology, but instead in deploying products that drive competitive fandom. Fans compete to be the biggest fan, often by spending more. This can be a kid spending their parents’ money to have his comment pinned to the top of a YouTube gamer’s comment stream, or a Twitch user paying to unlock exclusive emotes and sub badges of their favourite Twitch streamer. 
The platforms need to consider a crucial principle: just because you can do it does not always mean that you should do it.
A crucial moment for the business of fandom
Fandom is the ozone layer of the entertainment world, and it is a critical resource that is too often taken for granted and can be irrevocably damaged. 
This is a crucial juncture for fandom. We are beginning to see the emergence of cool new apps, like Fave, and Western labels looking East for inspiration, such as UMG tapping Hybe’s Weverse app for some of its artists. It is crucial that well intentioned efforts do not falter because of a wider fandom backlash. Fandom should be nurtured, not harvested.
Not only is there so much that can be done, the music industry needs more to be done. A key reason there are armies of BTS and Black Pink fans in the West is because a generation of kids were growing up with a sense that something was missing from music for them, that streaming simply did not let them express themselves and feel part of something. Streaming in the West does not do fandom. Streaming in China, perhaps, does it too well. Clearly, there must be a solution somewhere in the middle that enables fans to be fans, while also doing the right thing for them. 
Fandom and ethics should not occupy opposite sides of the debate. They should be intertwined and interdependent. Fandom is about who you are and what you are. Without ethics, what are any of us?
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Very cogent analysis, Mark. Especially appreciate your last question. Indeed. It occurs to me the hyperextended version of fandom you touch on is the latest iteration of the age-old search for meaning and it’s attendant reality, someone/something to worship. To wit, I once heard a lead guitarist for the 80’s supergroup Journey say he realized one night during a solo everyone in the stadium was worshipping. The question we must all answer is “Who/what deserves it?” Bereft of a sense of the transcendent, dare I say God, humanity will always tailspin into worshipping ourselves the way we wish we could be. That never goes well.
On Fri, Sep 10, 2021 at 10:13 AM Music Industry Blog wrote:
> Mark Mulligan posted: ” The Chinese authorities’ crackdown on > fandom represents the first major growing pain for the global fandom > economy. Tencent Music Entertainment (TME) will likely be the bellwether of > this shift, with two thirds of its revenues coming from ” >
You’re missing a big point. Asian culture creates a different kind of fan than the West. Asian fans tip, they’re more engaged, etc. Western fans don’t tip. That’s for everything, not just music. By only focussing on the apps and assuming fans all over the globe are the same, you’ve missed a key difference which is why the engagement of Asian fans will never translate to the West.
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