PYMNTS-MonitorEdge-May-2024

Spotify Unveils Hub to Let Fans Buy Artist Merchandise

Spotify said it doesn’t want music fans to have to wait for new artist merchandise.

The streaming audio platform announced Monday (Oct. 16) that it was adding a dedicated “Merch Hub” to its app to make it easier for listeners to browse and shop for productions from their favorite artists.

“Sporting merch from your favorite artists is a vital part of music culture, and our new Merch hub provides personalized merch recommendations based on your listening habits,” the company said in its announcement.

Before this, Spotify made artist merchandise available from individual artist profiles, the Now Playing view, and release pages. 

“Instead of having to browse artist by artist, this update makes it easier than ever to access all artist merch in one place,” the company said. “From the hub, you can browse, click on available items to learn more, and then purchase through the artist’s Spotify store, powered by Shopify. “

The announcement comes weeks after reports that Netflix was making show merchandise available as that programming was being developed, making promos and purchasing available from the show’s launch.

As PYMNTS wrote, it’s an example of the way platforms are realizing “the cross-selling potential of digital/physical commerce and content mashups.”

PYMNTS Intelligence finds that a substantial number of consumers are using social media platforms to buy everything from clothing to pet-related products, with 28% of consumers saying they transact on social media because it allows them to make a purchase as soon as the product grabs their attention. 

Meanwhile, PYMNTS spoke earlier this year with Spotify Vice President, Global Head of Commerce and Customer Service Sandra Alzetta about the company’s plans to build on its existing payment options.

“We’re active today in 184 markets, which means that we collect payments in 184 markets,” she said. “Payments are very different in each market, which means that we have to look at each one individually and figure out the right offering for our users. If we get it right, we know just how powerful that can be.”

Not ending with the card payment default, Alzetta pointed out that Spotify has worked with Google on a user choice billing (UCB) pilot that has potential beyond the search giant. 

“We’ve been working with Google, looking at how we make sure that we’ve got payment choice for their users,” she told PYMNTS. “We’re very proud of the fact that we’ve been working with them for the first of its kind in-app payments, which means that users have got the choice of how they want to pay.”

PYMNTS-MonitorEdge-May-2024