In an era when streaming platforms continue to consolidate power and even completely AI-generated music is finding its place on the charts, Dan Melnick, General Manager of Bandcamp, makes a compelling case for an alternative: an artist-first music economy rooted in transparency, ethics, and human connection. "Bandcamp only makes money when artists make money,"
Melnick emphasized during a recent conversation on the Music Industry Experts podcast. It's a deceptively simple statement that encapsulates a philosophy rare in today's music tech space. Where streaming services monetize access and data, Bandcamp monetizes trust.
Founded as a marketplace rather than a platform, Bandcamp allows any musician or label to upload their work and sell it directly to fans. Artists retain the vast majority of revenue from each sale, and the model has gained particular relevance as streaming services continue to lower their payouts. "An artist can make more off a handful of sales on Bandcamp than they would make in years from streaming," Melnick said. "Especially now that Spotify has demonetized any stream under a thousand plays."
That shift, while often under discussed outside industry circles, represents a fundamental challenge to the sustainability of a music career in 2025.
"Literally, most of the music on Spotify makes no money,"
Melnick said bluntly. Against this backdrop, Bandcamp's proposition becomes not just a throwback but a necessary response to modern industry shortcomings, where artists are increasingly sidelined from the very revenue their work generates.
A Transparent Relationship Between Artist and Fan
The value proposition isn't only financial. For Melnick, Bandcamp is a space where artists can reclaim the relationship with their audience. "It's more like going up to them after the show at the merch table and buying something from the band after they finish their set," he said. "I'm of the personal belief that people want more of that these days rather than less."
This ethos extends to the platform’s design.
Fans who purchase music build public collections that serve as recommendations, enabling over 30% of artist sales to come from Bandcamp’s internal network effects.
And because the company doesn’t gatekeep communication, artists can message their supporters directly. "We don't try and own that relationship. We let the artist own it," Melnick said. "Because that's their fan, not ours."
Bandcamp Fridays and the Business of Ethics
Launched in March 2020 at the start of the COVID-19 pandemic, Bandcamp Fridays—days when the platform waives its revenue share and artists keep 100% of sales—have become a hallmark of the company’s values. What began as a crisis response has grown into a sustainable business decision. "We've done the math," Melnick said. "Even if we did it every Friday, it's not going to dramatically impact our business."
Instead, the company sees Bandcamp Fridays as a rare "win-win."
They build goodwill, deliver measurable sales boosts, and reinforce the platform’s identity as a partner to artists, not a landlord.
"If you find a win-win situation, take it and keep doing it," he added.
Melnick’s worldview positions music as more than a content vertical or data stream. "Music scenes are vibrant ecosystems," he said. "They're made up of lots of participants. Artists, yes, but also journalists, DJs, venues, touring infrastructure, and the instrument industry."
This ecosystem approach is crucial to understanding Bandcamp’s divergence from the logic of most venture-backed platforms. When asked how the company justifies Bandcamp Fridays internally, Melnick was clear: "You shouldn't poison your own well water. If this is good for artists, it's going to be good for Bandcamp in the long run."
A Counter-Narrative to AI and Content Fatigue
Bandcamp’s commitment to ethical, human-centered music distribution begs an obvious question: where does a platform like this stand on the rise of artificial intelligence in music?
As conversations around AI in music grow louder, Melnick offers a measured but resolute take. While he acknowledges the creative potential of AI as a tool, he draws a firm line between innovation and dilution. "Care is what's going to stand out in that world, not quantity," he said.
He also rejects the idea that faster, easier production necessarily benefits music. Referring to an artist who created nine albums with AI in a single month, Melnick noted,
"Making music was already pretty easy. The bar doesn't need to get lower."
For Bandcamp, the future isn’t about chasing clicks or feeding the algorithm. It’s about rebuilding infrastructure that values creativity, ownership, and fan connection. "I think the future favors a platform with direct fan connections," Melnick said. "And I think you're already seeing inklings of that from other parts of the industry."
A Model Worth Protecting
Melnick doesn't over-romanticize the music industry. "It certainly attracts its fair share of bad behavior," he admitted. But he believes Bandcamp can remain an oasis if it holds firm to its values.
"You can have a successful business and have ethics,"
he said. "You can have a successful, long-lived platform and stick to your guns on the reasons why it's special and different. Not everyone operates that way."
In an industry dominated by metrics, algorithms, and AI, Bandcamp’s model might seem quaint to some. But for those invested in a sustainable, human-centered future for music, it offers something radical: proof that there is not only an audience for music made by real people, but a market willing to support them.
It’s not about resisting the future. It’s about reshaping it. One sale, one merch table moment, and one fan connection at a time.
Learn more about BandCamp.
Connect with Dan Melnick on LinkedIn.
Music Industry Experts is a podcast from Music You’re Missing, hosted by Brendan Jeannetti. In addition to the podcast, Music You’re Missing operates as a full-service creative agency offering artist management, artist development, talent buying, content creation, and branded activations.
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