How Bandcamp Changed Independent Music Distribution Forever

TL;DR

Bandcamp's 85/15 revenue split (90/10 after $5K) and Bandcamp Friday model proved direct-to-fan music sales are viable alongside streaming. Despite ownership changes, it remains the most artist-friendly digital music platform.

Why Bandcamp Matters

When Bandcamp launched, the music industry was obsessed with streaming as the future. Every conversation centred on Spotify, Apple Music, and playlist placement. Bandcamp offered something radical: the idea that fans would actually pay for music if you gave them a reason to.

The results proved the hypothesis correct. Bandcamp has paid out over $1 billion to artists since its founding. On Bandcamp Fridays alone — when the platform waives its revenue share — artists have earned hundreds of millions. These aren't just major label artists benefiting; the vast majority of that revenue goes to independent and DIY artists.

The platform's design philosophy is deliberately artist-centric. No algorithmic gatekeeping, no playlist politics, no pay-for-placement schemes. Artists set their own prices, control their own presentation, and keep the vast majority of every sale.

The Business Model That Works

Bandcamp's standard revenue split gives artists 85% of digital sales (rising to 90% after $5,000 in revenue) and 90% of merchandise sales. Compare this to streaming platforms where an artist might earn £0.003-0.005 per stream, and the value proposition is clear.

Bandcamp Friday amplified this model into a cultural event. On the first Friday of each month, Bandcamp waives its revenue share entirely, meaning artists keep 100% of sales (minus payment processing). Fans have responded by specifically timing their music purchases around these dates.

The combination of fair economics, flexible pricing (including 'name your price' options), and a community of buyers who genuinely want to support artists has created a platform where direct-to-fan sales aren't just possible — they're thriving.

Challenges and the Future

Bandcamp's acquisition by Songtradr in 2023 raised legitimate concerns about the platform's future direction. Staff layoffs and strategic shifts have worried the community that made Bandcamp successful.

Despite these concerns, the fundamental model remains strong. No other platform offers comparable revenue splits, community features, or artist-centric design. For independent artists, Bandcamp continues to represent the best option for direct digital sales.

The lesson Bandcamp teaches the wider industry is simple but profound: fans will pay for music when the transaction feels fair, direct, and meaningful. The challenge for the industry is to build more platforms and models that honour this principle.