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Digital merch platform Hawkr secures £260k funding

Digital live music merchandise firm Hawkr has secured £260,000 (€296,000) in a seed round led by venture capital firm Jenson Funding Partners and other investors.

Launched in 2021 by co-founders Jamie Monson and Les Seddon-Brown, London-based Hawkr aims to streamline the process for artists and fans via a digital platform and data-driven solution to make buying and selling merch at live music events more accessible, profitable and sustainable.

Hawkr is centred around print-on-demand technology and direct-to-consumer sales. Artists can use tools on the platform to create designs, upload the final product to their virtual merch stand and then set the items live during a show while directing fans to the platform via in-venue promotion.

“Hawkr isn’t just improving the live music industry with a platform that makes the merchandise buying and selling process easier for all, but doing it in a way that takes sustainability into account,” adds Sarah Barber, CEO of Jenson Funding Partners. “It’s exciting to be investing in a company that values reducing the carbon footprint of tours and live events alongside the profitability and accessibility that is at the heart of the music industry. We look forward to seeing Hawkr’s continued growth as it makes the merchandise experience better for music fans everywhere.”

“It’s a problem that’s needed a solution for a long time”

Fans are able to browse merchandise on their phones, select their item and have it sent to Hawkr’s print-on-demand supplier. Some 150 artists are currently on the Hawkr platform, and the firm also has partnerships with industry organisations and groups including Marshall Amps, the Featured Artists Coalition, and Brian Eno’s music eco charity Earth/Percent.

Hawkr plans to use the new investment to develop a pipeline of new innovative features, while continuing to build out its partnership network within the music industry.

“When I ran a portfolio of major music festivals for nearly a decade, I got to experience the merchandise world and all the issues that artists and fans go through first hand,” says Monson, Hawkr CEO. “It’s a problem that’s needed a solution for a long time, particularly on the sustainability front where it was often the case where I’d be left with countless boxes of items and be left to find ways of getting rid of it.

“Our marketplace platform helps alleviate all of these pain points and offers a more seamless process for all parties from start to finish. This funding will help us continue to develop our service and expand it to other parts of the world so artists and fans everywhere can enjoy a better experience with merch at live gigs.”

 

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Musicians’ Union backs FAC’s 100% Venues scheme

The UK’s Musicians’ Union (MU) has given its backing to the Featured Artists Coalition’s (FAC) 100% Venues initiative, which encourages venues to allow artists to sell merchandise without charging commission fees.

The FAC launched the 100% Venues scheme – a public directory of music venues that charge zero commission on the sale of merchandise – in 2022 in a bid to address the “outdated and unfair” practice of performance spaces taking a cut of acts’ merch proceeds at gigs.

The MU, which represents over 32,000 musicians working in all sectors of the music business,  says the work being done by the FAC to highlight the issue aligns with its own Fair Play Venue database, which includes details of UK venues that have committed to engage artists in line with the Fair Play Guide.

“We’re delighted to show our support for the 100% Venues initiative, which is becoming a vital resource for musicians in the UK,” says Kelly Wood, national organiser, live, theatre & music writers – Musicians’ Union. “Touring remains a key part of many artists’ careers, and whilst it can help to grow fanbases and support releases, it can also prove very challenging from a financial perspective.

“The growing number of venues that have signed up to the initiative so far sends a very strong and positive message to artists”

“The UK has an incredible network of music venues, which are loved universally by artists and audiences. However, to protect the viability of future tours and careers, we need consistent and fair terms for performers. Artists rely on a combination of income streams when on tour, and any threats to these – such as unfair or unexpected commissions on merchandise – can have devastating effects.

“The growing number of venues that have signed up to the initiative so far sends a very strong and positive message to artists, and we hope that this leads to more pressure for other venues to improve their terms and get behind the campaign.”

The MU’s support follows the extension of the 100% Venues campaign into North America in late 2022, and after the issue of merchandise commission was raised in last month’s US Congressional hearing regarding the US live touring landscape.

“We are hugely grateful to receive support for 100% Venues from our friends at the Musicians’ Union,” adds FAC CEO David Martin. “The MU and FAC’s members deliver the performances that the whole live music industry is built on, yet many are facing an almost impossible task to keep the show on the road. That is why the issue of merchandise commission has become so pronounced and why we will continue to fight for a fairer settlement for artists.”

 

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Warner Music partners with DRESSX on digital merch

Label giant Warner Music Group (WMG) has announced a first-of-its-kind partnership with digital fashion retailer DRESSX, which will enable acts to design their own virtual merchandise.

Select WMG artists will collaborate directly with DRESSX to design and launch 3D and AR virtual clothing that fans can collect across platforms such as Instagram and Snapchat, enabling them to unlock new revenue streams while creating additional outlets for fans to showcase their fandom across multiple digital worlds.

“The representation of our future digital selves will be as important and, if you’re measuring by sheer volume of interactions, maybe more important than how we represent ourselves physically,” says Oana Ruxandra, WMG’s chief digital officer & EVP, business development.

“As our digital identities become exponentially more robust and impactful, we are focused on building partnerships that will enable WMG and our artists. With its leadership in wearables and sustainability, DRESSX is exactly the type of partner we need sprinting alongside us as we build for the future.”

The deal marks the latest in WMG’s growing number of Web3 collaborations.

“Digital merch and swag from musicians will definitely be a part of the digital wardrobes of fans”

“We are extremely proud to partner with Warner Music Group and their incredible artists to continue building and scaling the DRESSX meta-closet vision for the future,” say DRESSX co-founders Daria Shapovalova and Natalia Modenova. “Digital fashion is a visual language for communicating and creating bonds online, and at DRESSX we use technology to provide the utility for digital wearables using augmented reality, machine learning, and blockchain.

“Digital merch and swag from musicians will definitely be a part of the digital wardrobes of fans, and it’s great to see that more and more stakeholders believe in this new domain that is already changing the fashion industry at a scale. Every day, we are getting closer to our aim of giving a meta-closet to every person in the world, making fashion accessible to everyone through innovation and tech.”

Launched in August 2020, the company has become the largest platform for digital-only fashion, with more than 3,000 digital items available in the DRESSX library, and launched the largest AR fashion app on the market. DRESSX has partnered with leading tech, fashion, and lifestyle companies, including Meta, Roblox, Snapchat, Google, Coca-Cola and FARFETCH.

DRESSX is committed to sustainable fashion and has invested in science-based evaluation of the carbon footprint of its digital fashions. Since June 2021, it has partnered with Flow Carbon to offset the carbon emission from all of its operational activities, making the company carbon neutral due to offsets.

 

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Artists weigh in on cost of living crisis

A slate of artists have capped the prices of their tickets or merchandise in a bid to help fans in the UK weather the cost of living crisis.

BRIT Award-winning singer Tom Grennan has been praised by fans and artists alike for the price of tickets for his 2023 UK tour, which went on sale last week.

The 10-date outing kicks off in March next year, visiting arenas in Birmingham, Cardiff, Leeds, Newcastle, Glasgow, Nottingham, Manchester, Brighton, Plymouth and London.

Face-value tickets to see Grennan at The O2 in London range from £25 to £40, with one fan tweeting that it is “The cheapest I’ve seen for a mainstream radio-played artist in a long time”.

Grennan replied: “Trust me we’ve worked hard to pull the cost of tickets down, and dismissed all VIP and platinum ticket options as it’s just ‘bollox’ in the middle of a cost of living crisis. The pinch is real, and I take it very seriously. Others should take note.”

One artist to laud the decision was Paul Heaton (Housemartins, The Beautiful South) who replied to Grennan: “That’s brilliant Tom! Hopefully other artists of your generation will realise, like you have, that this is going to really hit people hard.”

Heaton and fellow The Beautiful South member Jacqui Abbott last week went on BBC Breakfast to explain how they have capped tickets for their own arena tour with Billy Bragg at just £30.

“I’m against greed in the industry,” Heaton said, adding: “It’s incredibly important that through the coming months and possibly years, that we tell the fans that we’re getting paid enough and we want to keep it low for you.”

Ed Sheeran and his team took a similar approach after the pandemic, with agent Jon Ollier (One Finiix Live) telling IQ: “We’ve frozen the ticket prices from last [tour], because of everything the world’s been through.”

Other acts have taken different approaches to helping fans during the cost-of-living crisis, with Japanese-British performer Rina Sawayama partnering with food bank charity The Trussell Trust for her forthcoming UK and Ireland tour. Food and/or cash donations will be collected at each stop on her 10-date outing.

In the announcement, Sawayama wrote: “I’m sure you’re all aware but the cost of living is increasing so much at the moment, and people are struggling to pay for essential things like heating and food. No one should have to worry about whether they can afford to eat or not.”

Meanwhile, indie rock band The Big Moon kept their merchandise prices low by selling it at a pub nearby to their London headline show, thereby preventing the venue from taking a cut of the proceeds.

According to the band, the O2 Kentish Town Forum would have taken a cut of 25% plus VAT on each sale; “Basically all of our profits on merch.”

“This left us with the choice of either not making any profit, or increasing prices and charging you guys more – neither feels fair.”

 

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400+ UK venues pledge zero commission on merch

Hundreds of venues in the UK have pledged not to take any commission on artists’ merchandise sold at concerts, thanks to a campaign launched by the Featured Artists Coalition (FAC).

In January, the FAC launched a public database of music venues that charge zero commission on the sale of merchandise.

The ‘100% Venues’ directory aims to address the “outdated and unfair” practice of performance spaces taking a cut of acts’ merch proceeds at gigs.

Since January, the database has garnered more than 400 entries, ranging from grassroots clubs through to 3,000-capacity halls.

The Barbican Centre (London), The Louisiana (Bristol), The Leadmill (Sheffield) and Deaf Institute (Manchester) are among the hundreds of ‘100% Venues’.

“The relationship between artists and venues represents one of the most important partnerships in the music ecosystem,” says David Martin, CEO, FAC.

“These 100% Venues are leading the way, enabling artists to take home 100% of merchandise revenue. This makes selling merchandise at gigs worthwhile for artists, creating a fairer and more sustainable touring circuit, particularly for grassroots and emerging talent.”

“That merchandise is the difference between breaking even or losing money”

And while Martin agrees that the progress is encouraging, he says that more work is required to help emerging artists break through after the hurdles caused by Brexit and the Covid-19 pandemic.

Speaking to NME, he said: “The discussion regarding punitive fees on merchandise sales is now very much a public one, with fans increasingly voicing their displeasure at such practices.

“The true scale of the problem is hard to say, but almost every artist that we talk to about it says, ‘Yeah, that really pisses me off. It has been prevalent for a very long time.

“What is absolutely clear is that, particularly at support band level, it’s still a matter of acts being told, ‘Come and play for no expenses and £50’. That merchandise is the difference between breaking even or losing money.”

He continued: “We’re seeing now that fans are finding out that this happens, and they hate it. It really annoys them that the money that they’re spending isn’t going to the artist as they thought.”

The campaign has draw support from the likes of The Charlatans lead singer Tim Burgess, as well as Peter Hook of Joy Division and New Order, who says: “You’re treated like gods in the dressing room and then robbed blind on the merchandise stall. I fully support this campaign and have been very vocal about this injustice to artists and fans for years. I fail to understand why these charges are so high?”

Venue bosses can sign up to the 100% Venues campaign by completing a one-minute form and the FAC is encouraging acts to share the spreadsheet with their fanbase and the wider music community. You can find more information here.

 

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YouTube to sell custom merch during Coachella sets

YouTube is to sell exclusive Coachella and artist merchandise for the first time during livestreams of this year’s festival.

Harry Styles, Billie Eilish, The Weeknd and Swedish House Mafia are to headline the Goldenvoice-promoted festival’s first in-person event since 2019, which returns this Friday and runs over two weekends (15–17 and 22–24 April) at the Empire Polo Club in Indio, California.

YouTube Shopping will offer virtual viewers a chance to purchase exclusive merchandise without leaving the livestream. Custom merch from Eilish and fellow Coachella performers Brockhampton and Flume will be available for purchase on Saturday 16 April for the entire day, directly on the livestream watchpage.

The collection will also be available for purchase the following Saturday during the second weekend of the event. Coachella will also drop its own merch collection, which can be bought on the watchpage throughout both festival weekends.

“The whole idea of exclusive merch drops is just so fans and artists could have more intersections together”

“We’re always trying to deepen the roots [with] fans and artists and one of the best ways that you could do it is through merchandise,” Lyor Cohen, YouTube’s global head of music tells the LA Times. “The whole idea of exclusive merch drops is just so fans and artists could have more intersections together.”

Fans will be able to choose between three livestream feeds of the festival, with different performances airing simultaneously. The YouTube livestream will also feature exclusive artist interviews, YouTube Shorts behind-the-scenes content and sweepstakes, and premium pre-parties, among other benefits.

In addition, six creators – Benoftheweek, Kaiti Yoo, Kirsten Titus, Larray, Lauren Giraldo and Quenlin Blackwell – will “live” at the YouTube Shorts Compound and capture their festival experience on their respective YouTube channels, with dozens more creators also set to document their adventures on Shorts.

A pair of lifetime Coachella passes in the form of a non-fungible token (NFT) are also being offered as part of the YouTube Coachella Sweepstakes. The festival previously auctioned 10 lifetime passes to the event earlier this year as part of a series of NFTs.

 

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Backstreet opens German hub to beat Brexit ‘chaos’

Music merchandise specialist Backstreet International has opened a new European hub in Germany in a bid to alleviate the significant trade issues created by Brexit.

The London-headquartered company, founded in 1989 by industry veteran Andy Allen, offers a full range of services including tour merchandising production, design, e-commerce, warehousing, fulfilment, social media marketing and print on demand for clients including Idris Elba, Black Honey, Underworld, Placebo, Franz Ferdinand, The Damned, Jessie Ware, Joe Strummer Foundation, War Child, Andrea Bocelli, The Kinks, Public Service Broadcasting, Siouxsie & The Banshees and DJ Shadow.

Its new German operation, which is based in Berlin, will provide artists touring in Europe with local production giving a faster turnaround, no VAT restrictions, no customs challenges, lower shipping rates, faster delivery times, lower carbon emissions and chart registration in multiple EU countries.

“The trade issues surrounding Brexit have caused chaos to artists touring in mainland Europe and our mission is to help alleviate those problems”

“Our new office in Berlin reflects what we have built in the UK and US over the last three decades and is a continuation of the options we provide our clients from a sustainable range of products wherever they are in the world,” says Allen. “The trade issues surrounding Brexit have caused chaos to artists touring in mainland Europe and our mission is to help alleviate those problems while providing that badge of honour that a fan can wear to demonstrate a strong connection with artists who have real meaning for them.

“The clients we work with now have an experienced team on the ground in Germany who they can deal with directly and it’s an exciting new phase for our company.”

Yesterday, IQ reported that over 100 European summer tours put at risk by the post-Brexit trade deal will be able to go ahead, thanks to extensive lobbying from LIVE and others.

Under cabotage restrictions now in force across the whole of Europe following the UK’s exit from the EU, trucks carrying tour equipment over 3.5 tonnes are limited to just three stops before they have to leave the EU and return to the UK.

However, the British Department for Transport (DfT) has now agreed to bring in a short-term, temporary license that would allow the ‘big five’ haulage companies to operate their vehicles under both GB and EU operating licenses according to where their vehicles are needed for a particular tour.

 

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Silver Lake, Roc Nation invest in merch company Fanatics

Sports merchandise company Fanatics has raised US$325 million from investors including Jay-Z and his company Roc Nation, a joint venture with Live Nation, and private-equity company Silver Lake Partners, which owns shares in TEG, WME, Oak View Group and Madison Square Garden Company.

Headquartered in Jacksonville, Florida, and with international offices in Tokyo and Manchester, UK, e-commerce giant Fanatics sells officially licensed products for the National Football League, Major League Baseball, the National Football League, Nascar and more, and also operates several bricks-and-mortar shops.

The new funding will be put towards launching a non-merchandising division focusing on ticketing, gaming, media and sports betting, according to the Wall Street Journal. The company recently launched a company focusing on NFTs (non-fungible tokens), Candy Digital, and also has a partnership with leading esports competition Overwatch League.

The new investment values the company at more than $18 billion, the WSJ reports. The company expects to make $3.4bn in revenues in 2021.

Last week, the company hired Dan Goldberg, formerly of Warner Music Group, as senior vice-president for music and entertainment development, signalling its intention to branch out beyond sports apparel into music merchandise.

 

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Merch company Playbill expands in New York

Platypus Productions, part of Australia-based global merchandising group Playbill, has announced the appointment of Steven Downing as chief merchandise officer, live entertainment, based in New York.

Downing brings to more than 25 years’ industry experience, including from the Walt Disney Company and Warner Bros’ merchandising departments, to Platypus, where he will oversee creative, operations and strategic planning for the company’s theatre and live events merchandise division, reporting to Playbill managing director Michael Nebenzahl.

“Steven’s international reputation and successful history in the live entertainment merchandise field is a tremendous asset for us,” says Nebenzahl. “His creativity, dedication and hands-on collaborative approach in support of the world’s most beloved stage productions has earned him a reputation as a global leader.

“Steven has a wealth of knowledge, experience and a unique creative talent, which will support our continued growth in live entertainment merchandising around the world. We’re delighted to welcome Steven to our growing global team.”

The Playbill Group of Companies operates in ten countries, including Australia, New Zealand, Singapore, Hong Kong, Taiwan, Korea, South Africa, Germany, the UK and the USA. Merchandise clients include Les Misérables, Leo Sayer, Tina Arena, The Lion King, the New South Wales Waratahs, Mary Poppins, the Sydney Roosters, André Rieu, Diana Krall and The Phantom of the Opera.

“With live theatre reopening worldwide, I’m excited to work with Platypus during such an important time,” says Downing. “This opportunity allows me to develop new and innovative ways of partnering with producers, supporting each production and brand while elevating the theatre experience. I feel there are no limits to our potential accomplishments in this new era of live entertainment.”

 

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Dice launches direct-to-fan merch platform

Ticketing and music discovery company Dice has launched Merch on Dice, a direct-to-fan merchandise sales platform for artists.

In the same way as fans can find shows and buy tickets through the Dice app, Merch on Dice will allow them to order limited-edition artist products to pick up at the concert or have delivered. Consumers will also receive notifications and updates about available merch in the run-up to the show.

“We’ve built a beautiful direct to fan, mobile-only shopping experience specifically for live events, making it easy for fans to quickly order limited-edition products that they can pick up at the venue or get delivered to their home,” says Phil Hutcheon, CEO of Dice.

“The success of live streams has propelled the demand for limited-edition, rarer apparel in particular”

For artists, Merch on Dice will enable them to create exclusive limited-run product ‘drops’ in the lead-up to a gig which are only available to fans attending the show and/or live stream.

“In an increasingly virtual world, the need for physical memories are more important than ever. The success of live streams has propelled the demand for limited-edition, rarer apparel in particular,” continues Hutcheon.

“Merchandise will always have a deeply emotional draw on fans – it’s intrinsic to the live experience – and we want to make it better. We’re bringing artists and fans closer through merch on Dice.”

 

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