See how big Data changes the music industry

Industry leaders continue to regard music royalties as the most important, as the only future of artists ' income. However, the fate of the commercialization of music remains uncertain. Some people think our goal is simply to send the artist's music to consumers ' ears. Others believe that consumers should continue to pay for music services. However, the subscription model is unlikely to be the only way for the music creators to continue to receive compensation, whether they are contract musicians or independent musicians.

According to the US Record Industry Association (RIAA), the total volume of U.S. music sales fell to less than $7 billion compared with the $13 billion trillion in 2003. At the same time, with the development of science and technology industry, the music industry continues to upgrade, some new consumption models replace the CDs and itunes and other classic payment models, while the market share has been reduced.

Nielsen recently surveyed the future of the music industry, exposing an "unfortunate reality" of consumer buying habits: media streaming has become an important way for consumers to access music services, and if an artist does not choose streaming media services, he loses 8% of the extra sales. In most cases, this can lead to illegal downloads. What the music industry really needs is a variety of revenue channels, not just a purely model of subscribing and selling.

Yet these arguments lack a very important point, a new source of revenue for the music industry: Big Data.

Connect with the audience

Music is a universal medium connecting the world, and large data is the key to unlocking its potential. Large data can not only make up for music in the physical real world sales revenue loss, but also can surpass it. Through advertising technology and social media, music can take advantage of a larger, data-driven digital advertising market, and can collaborate with global brands such as Red Bull, Nike, hints Outfitters, through brand synergy marketing and mobile participation. Some influential figures in the music industry have proposed a redesign of the advertising strategy for the music industry. "When commercials are no longer advertising, they can become art." "actor, director, musician Jered Leto (Jared Leto) said in a recent roundtable discussion in advertising weekly.

It seems that music needs a new way of connecting with consumers. Let's look at a new revenue-sharing model, taking Instagram as an example:

Over the past two years, Instagram has become a fiery brand marketing and advertising tool. Brand companies are more involved in Instagram than any other platform, and Instagram launched a carefully placed integrated advertisement last year that allows seamless integration of advertising and user news. More interestingly, brands can work with influential users on Instagram as a means of connecting with their target customer base. Now we can see that many freelance photographers and socially influential users earn revenue by sharing brand content. In addition to blatant banner ads and subscription services, brands have found an organic way to connect with their consumers.

The same concept can also be applied to the music industry, especially when it comes to big data. Large data can reveal the motives behind consumer music choices, link the content of social networks to their consumer behavior, and reveal the "music DNA" of specific populations. In other words, it is through different music combinations to attract a specific audience group. This bodes well for a strong branding strategy that enables artists to provide valuable data for their brands.

Large data

Like using a Instagram paid advertising platform, brands can use music data and music DNA to drive participatory strategies and enhance brand awareness and loyalty. By combining this with the appropriate release platform, the brand will have a powerful marketing tool. In turn, artists can get good rewards based on their participation in the audience, and each song is released through the brand channel, generating revenue through clicks.

Music artists no longer rely solely on consumers to make money, and through big data, they can help the brand connect with their target audience and make money. The potential in this area is endless, as data is no longer confined to the structure of the old record-making system, and there is a lot of room for innovation in the market.

Eventually, the entire digital catalogue of more than 300,000 songs can be converted into a huge data store. Artists can choose whether to participate in this data revenue plan, and soon they will be able to authorize the commercialization of the song's data through a music distribution platform like TuneCore or Weespin. The brand can help to understand the target audience, domain and social interests, age distribution and other information by purchasing the analysis data of these platforms. The income calculation is also very simple, depending on the brand's marketing activities in the total number of songs or clicks to decide (such as a Nike training recommended song). This makes it possible for artists of all levels to make money directly from the brand participation that their music generates.

One flaw in the brand data model, one might argue, is that there must be enough brand demand to maintain the supply of music, and not every brand has an appropriate music or music brand marketing. However, the trend of content marketing is unstoppable. Native advertising is one of the fastest growing segments of the advertising market. Music is the most social media type in all media, it penetrates into people's life massively, has a large number of loyal fans. Real estate brokers can build partnerships with lifestyle brands and designers, so why can't brands work with music? Opportunities are limitless. We can boldly point out that the commercialization of data will allow music to enter the fastest-growing historical period.

(Responsible editor: Mengyishan)