LÜM has announced the first-ever virtual gifting system as a part of its music streaming platform. Fans will now be able to provide direct support to their favorite artists on the app. In the traditional music industry, only 1% of musicians earn any material income from their music.
But, in LÜM’s music discovery community, this new virtual gifting system will allow artists to grow and monetize their fan base.
The Madison-based tech startup recently closed a $1.4 million seed financing and launched its social music streaming app in July. In addition to LÜM’s recent partnership with Frank Productions, one of the largest concert promoters in the United States, this announcement illustrates the mobile app’s dedication to facilitating artist growth while providing new opportunities for emerging musicians around the country.
Since launch, LÜM has accumulated over 30,000 users and 50,000 tracks, making it one of the fastest growing music streaming services in the US. With new offices in Austin, Texas and New York City, the company is accelerating its timeline to transform artist profitability and user experience, with goals of empowering emerging musicians who are currently being neglected by mainstream services.
“For far too long, the financial problems in the music streaming industry have been directly correlated with the frustrations of the majority of users. Therein lies the need for disruption,” said Max Fergus, CEO of LÜM. “Every generation has seen an evolution of music consumption, and now we have the ability to give this generation of artists and fans what they truly want—a better community around music advocacy and artist profitability.”
LÜM will be launching its virtual gifting system in 2020, with a beta release set for January. The system will allow users to earn and buy “Notes,” LÜM’s in-app currency. Users can then use Notes to support their favorite artists, earning rewards and achievements along the way. With the help of Frank Productions, the company is looking to expand the virtual gifting system into live entertainment, as well as other areas that can advance the careers of emerging musicians.