LÜM, the rapidly growing app, that combines music streaming with the amplification effects of social media, has launched a virtual gifting system focused on direct fan-to-artist financial support. Fans will now be able to use LÜM’s newly created in-app-currency to virtually gift/financially support their favorite artists. In the music streaming industry, less than 1% of artists earn material income from music streaming services.
On LÜM, artists can directly connect with fans, share their music, and monetize their fanbase all on one platform.
The Madison-based tech startup recently closed a $1.4 million seed financing and launched its social media and music streaming app in July 2019. The platform has grown to over 16,000 fans, 24,000 artists and has over 60,000 tracks in its music catalog. LÜM has also recently partnered with Frank Productions, one of the largest concert promoters in the United States.
The partnership looks to explore the relationship between LÜM’s organic fan and artist data and its use for live entertainment as well as its use in other verticals of the music industry.
LÜM’s in-app-currency, Notes, can either be bought in-app or earned through streaming music and engaging on the app. LÜM has eight levels of virtual gifts, with each gift representing a specific number of Notes. A Note has a set value that is slightly greater than the royalty payout per stream of other streaming alternatives.
Fans and artists can use LÜM’s virtual gifts to support their favorite artists/peers, earning rewards and achievements along the way. This system, coupled with the social aspects of the platform, allows artists to increase and monetize their fanbase.
Current streaming platforms lack the ability for fans to directly support their favorite artists, while crowd-funding platforms lack the necessary incentives to drive fan support. LÜM creates a direct connection between artists and fans, where artists provide unique content experiences and music to their loyal supporters. Fans can connect with the artists they gift and compete to be an artist’s top supporter. By gamifying the music discovery experience and enhancing the fan and artist experience, LÜM looks to change the way music streaming is monetized for artists.