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By\u00a0<\/em>Tatiana Cirisano<\/em><\/strong><\/a>\u00a0of\u00a0<\/em>MIDiA Research Blog<\/em><\/strong><\/a><\/p>\n Expanded rights are quickly becoming the growth engine of the recorded music industry. The category \u2013 which includes labels\u2019 participation in revenue streams like merch<\/a> and live<\/a> \u2013 grew an impressive 21.5% in 2025,\u00a0according to MIDiA\u2019s recorded music market shares report<\/a>, leaving all other revenue segments in the dust.<\/p>\n Yet what got fandom monetization here is not the same as what will drive its next era. As new generations age up, their diverging preferences will increasingly shape the market for fan products and experiences. To this end, MIDiA recently surveyed 1,000 US fans who had bought either merchandise, physical music, or live concert tickets in the last year. <\/p>\n The results, explored in a 44-page report out next week, point towards a rising bar for music merch and experiences; and suggest that two genres in particular may be overlooked.<\/p>\n While band t-shirts may be the market\u2019s bread-and-butter today, younger buyers expect a wider variety of merchandise than ever. In fact, 16\u201324-year-olds under-index for favouring t-shirts, but over-index for options like hoodies, posters, keychains, and jewellery. <\/p>\n It makes sense \u2013 if you grow up in a world of algorithmic feeds and the ability to order pretty much anything online, why wouldn\u2019t you expect merch to be similarly tailored and accessible?<\/p>\n Younger fans also value subtlety and \u201cif you know, you know\u201d signals over more obvious artist branding. Together these data points reflect a growing appetite for bespoke merchandise tailored to the artist and fanbase \u2013 consider Earl Sweatshirt\u2019s incense, Sabrina Carpenter\u2019s pajama set, or Bon Iver\u2019s home fragrance. <\/p>\n This means more effort, but the potential reward is high, and there is a growing market of boutique merch agencies looking to help.\u00a0<\/p>\n As listenership fragments, so does fandom. The result is that just under half of respondents say they mainly purchase merchandise from larger, more well-known artists and bands. The shift becomes more pronounced with each younger age cohort. While teens are often more likely to seek underground culture anyway, the ongoing trend of fragmentation suggests that this shift is generational, not just demographic. <\/p>\n Mainstream artists may drive higher spend, but in terms of overall sales volume, merch this is no longer only a superstars\u2019 game. A proliferation of on-demand merch startups are helping artists of many sizes meet fan appetite.<\/p>\nSophistication<\/strong><\/h2>\n
Fragmentation<\/strong><\/h2>\n