Why Twitter is better positioned for tipping musicians than streaming services like Spotify and SoundCloud

Twitter just launched a new tip jar feature with greater potential for musicians than those launched on popular streaming services such as Spotify and SoundCloud last year.

A new tip jar

Twitter started rolling out its new tip jar functionality last week. The functionality, which for now is only available to a limited group of creators, allows people to add Bandcamp, Cash App, Patreon, PayPal and Venmo to their profiles via a new button on their profiles. It’s a bit like a ‘link in bio’, but specifically for payments.

Why tip jars ‘failed’ on streaming services

Streaming platforms are not creator services. They focus on monetizing the catalogue-listener relation through ads and subscriptions rather than the artist-fan relation. That means the user experience on streaming services is geared towards what people expect in exchange for their payment: quick access to the music they know, new music, and being able to find ‘music for every moment’.

I’m not entirely sure how these services defined success for the donation feature, but especially Spotify needed a PR win over the past year, so I’m interpreting their silence over the feature as an indication that nothing significant is happening through there. As a matter of fact, it seems that in its newly designed desktop profiles, the feature has been quietly removed. For reference, compare Marshmello‘s profile on mobile and the new desktop UI.

Why Twitter is better positioned for tipping

Social media is where people connect to artists. You may listen to dozens of artists per month, even hundreds, but the commitment of a social media follow is something reserved for those you actually care about. Social media is primarily about what’s new and while you can scroll back into someone’s history, it’s a secondary use case when compared to seeing months or years-old ‘content’ appear on playlists.

Through social media, it’s easier than on streaming services to stay connected with people and introduce them to new ways to support you. By creating a Tip Jar that also includes things like Bandcamp and Patreon, Twitter is reducing the distance between a person being interested in something and actually purchasing it. Any friction in that journey causes drop-offs along the way, so any reduction of friction or journey length translates to real money for creators (see also: merch integrations in (live)streaming platforms).

Expect others to follow suit

The type of direct monetization offered through Twitter’s Tip Jar is part of a wider trend that can also be seen in livestreaming services, the surging popularity of Patreon and OnlyFans, Clubhouse‘s tipping feature, and even the donation buttons in music streaming services.

Twitter will not be the last service this year to roll out more monetization options.