Yeah, we know what you feel reading this headline. But it’s absolutely true, and it kind of makes sense.
A bit of a background story. It was last year when Spotify started a partnership with Merchbar – an online platform for artists and labels to sell merchandise. It’s quite popular actually, with more than 35,000 of the world’s artists participating in it. The latest development is expanding the current deal that was already in place.
So why makeup? There are a couple of reasons behind this. First of all, digital channels have introduced beauty products to a wider audience and, in fact, many hot and hard-to-find brands have gone mainstream thanks to this digital shakeup. Also, an increasing number of artists have started endorsing beauty brands, or have even launched their own lines – Rihanna with her Fenty Beauty line represents a prime example of the trend.
Another reason for Spotify’s choice is the need to diversify. The music platform has long flirted with the idea of an IPO, so offering a wider range of services comes highly recommended. Artist merchandise may be the first step; however, a complete celebrity product line is an odd choice at first… but a really smart move in the long run.
Of course, the hot topic around this move will naturally be the repercussions on the brand image, as music and makeup don’t seem like an obvious match. However, artist endorsements, along with an additional revenue stream for both brands and Spotify, could help seal the deal. Let’s not forget that Spotify is not quite the money-maker for most artists out there, so providing them with something extra is more than welcome. Moreover, the cash potentially flowing into Spotify’s coffers could be a deciding factor for investors to back a potential public offering in the year to come.
So far, it looks like this development will most likely benefit bigger names, with partnerships already in place, but we’re curious to see how this will play out for smaller-range artists that may not have the means or status to get into sought-after endorsements and deals with brands. Could this signal the first step into a more diversified portfolio of merchandising products?