Get This: 75% Of Topspin Sales Involve Physical Goods

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Everything may be going to bits-and-bytes, but it turns out that fans still love something tactile.

Not only that, they’ll pay premiums for packages that include collectibles like colored vinyl, signed lithographs, and whatever else fits the audience.

The proof?  According to information shared with Digital Music News, a whopping 75 percent of Topspin revenues involve some sort of physical product.  “We’re beyond the one-size fits all product world – thankfully,” said Topspin CEO Ian Rogers, discussing the numbers at New Noise Santa Barbara.  “What we see is, 50 percent of what we sell is digital, and 50 percent of it contains something physical.  The 50 percent that contains something physical is 75 percent of revenues, or more.”

Sounds astounding, except when you consider the value of higher-end, higher-priced stuff.  These premium goods carry great margins, and for artists with serious fans, it can all add up.  “You can definitely add a lot of money to any campaign by just adding some limited edition goods that are at a higher price point,” Rogers continued.

So, should artists and labels simply diversify their product mix while catering to higher-end buyers?  Absolutely, that is, if the artist has a fanbase that’s ready, willing, and buying.  In fairness, the Topspin ‘roster’ is only about 3,000, according to Rogers, and most of these artists already have traction.  Many more have longtime, established fanbases.

Paul Resnikoff, publisher, from Santa Barbara.