Bandcamp Founder Explains Long-Term Community Building | How I Built This with Guy Raz | NPR

Transcript

hello everyone and welcome to how i built this resilience edition from npr i'm guy roz this is where we talk with uh business leaders about how they're building resilience in these challenging times and my guest today is ethan dimon he's the founder and ceo of band camp it's an online record store and music community where about 80 percent of sales... Read More

Summary

Ethan Diamond, the founder and CEO of Bandcamp, discusses the platform's mission of serving artists and building a community around music. Bandcamp is an online record store and music community that allows fans to connect with artists and directly support them. Diamond highlights the key features of Bandcamp, including its focus on supporting artists and providing a platform for independent labels. He also discusses the impact of the COVID-19 pandemic on the music industry and Bandcamp's response, such as the introduction of Bandcamp Fridays where all proceeds go directly to the artists. Diamond shares his thoughts on the future of the music industry and the potential for Bandcamp to expand into live events and streaming services.

Questions & Answers

Q: Can you explain how Bandcamp works?

Bandcamp is essentially an online record store and music community where fans connect with artists and directly support them. It offers both physical music (vinyl, CDs, etc.) and digital music (albums, tracks) for purchase. The platform also recently launched live streaming capabilities.

Q: How does Bandcamp's revenue model support artists?

Bandcamp's unique revenue model is built around the welfare of the artist. Instead of relying on advertising or subscriptions, Bandcamp helps artists sell their music and takes a small revenue share on every sale. This alignment of interests ensures that Bandcamp only makes money if artists make more money. On average, about 82% of the revenue goes directly to the artist.

Q: Is Bandcamp similar to Etsy for independent music?

Yes, that's a fair comparison. Bandcamp and Etsy are both large marketplaces that focus on supporting creators. They provide a platform for independent and label-affiliated artists to sell their music directly to fans.

Q: Can you share more about the origins of Bandcamp and how it evolved into an online record store?

Bandcamp's initial focus wasn't on being a record store but rather on helping artists sell their music directly to fans. The idea was sparked when the founder, Ethan Diamond, encountered technical difficulties while trying to purchase music directly from a band's website. He saw the need for a platform that made it easy for artists to connect with their fans and sell their music. Bandcamp evolved into an online record store and community over time, driven by the mission to support artists.

Q: How has Bandcamp prioritized the well-being of artists in the music industry?

Bandcamp has been dedicated to putting artists first and ensuring that they receive a significant share of the revenue generated on the platform. They do not sell advertising and are not focused on subscriptions. Instead, their main goal is to help artists sell their music and earn a living. This approach has resonated with artists, with many reporting that Bandcamp sales provide a substantial portion of their income.

Q: Does Bandcamp help connect artists with labels and protect them from predatory contracts?

While Bandcamp does not have a service specifically designed to connect artists with labels, many independent labels actively use the platform to discover and sign new artists. Bandcamp provides artists with a platform to manage their music and merchandise independently, but it also recognizes the value that labels bring in terms of expertise and support. The platform aims to serve artists across different preferences and needs.

Q: How has the music industry changed during the pandemic, and what do you think will happen post-pandemic?

The pandemic has had a significant impact on the music industry, particularly on live events and venues. Many venues have closed or faced financial difficulties. The consolidation of power in the industry, with companies like Live Nation, has also raised concerns about rising ticket prices and less diversity in music. However, there has been a shift in thinking about how to support artists during the pandemic, leading to more direct support through platforms like Bandcamp. It remains to be seen how the industry will evolve post-pandemic, but there are both positive and negative possibilities.

Q: Does Bandcamp have plans to enter the live events space or partner with independent venues?

Bandcamp has recently launched a live streaming service that enables artists to stream shows directly on the platform. While they are not currently involved in physical venues, Bandcamp's focus on building a strong community and connecting artists with fans suggests that they may explore opportunities in the future. The new live streaming service allows artists to monetize their shows by offering ticketed events and merchandise sales.

Q: Does Bandcamp plan to incorporate non-fungible tokens (NFTs) into its platform?

Bandcamp is open to exploring new features and tools that artists and fans are interested in. Regarding NFTs, they would consider incorporating them if there is demand from artists and fans and if they can be implemented in an environmentally sustainable way. Currently, the demand for NFTs on the platform is low, and many artists see Bandcamp as a valuable alternative for supporting their work.

Q: What advice would you give to an entrepreneur who wants to run an ethical, mission-focused business?

It is important to align the business model with the values and mission of serving the community. Misalignments between priorities and revenue-generation can lead to challenges and compromises. Entrepreneurs should prioritize the welfare of their community and consider the long-term impact, even if it means slower growth or resisting external pressures. Building an ethical business requires thoughtful decision-making and staying true to the core mission.

Q: What have you learned about yourself or running the company during the past year that you want to carry forward into a post-pandemic world?

The sense of urgency and the ability to adapt quickly have been valuable lessons during the pandemic. Bandcamp's ability to respond rapidly and introduce new features such as live streaming demonstrates the benefits of having an agile mindset. Diamond acknowledges the importance of urgency but also recognizes that Bandcamp's approach is usually more focused on getting things right rather than meeting strict deadlines. The lessons of adaptability and responsiveness will continue to guide them in the future.