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MONEYBALLING MUSIC
USING BIG DATA TO GIVE CONSUMERS WHAT THEY
REALLY WANT AND ENHANCE A&R PRACTICES AT
MAJOR RECORD LABELS
PRITHWIJIT MUKERJI
MA Music Business Management
University of Westminster
FUTURE THINKING
Future Thinking
…ideas, insight and inspiration
for tomorrow’s music business
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Contents
Executive Summary ....................................................................................................... 3
Foreword ........................................................................................................................ 6
About MusicTank ........................................................................................................... 7
Introduction .................................................................................................................... 7
Moneyballing Consumer Understanding ................................................................... 12
The Situation At Present ................................................................................................ 12
Shazam: A Case In Favour Of A Largely Untapped Resource ...................................... 15
Advanced Moneyballing: Sentiments, Streaming, Algorithms ........................................ 24
Soundtracks To Your Life: A Playlist For Every Emotion ............................................... 28
Genres Are Dead. Long Live Genres............................................................................. 30
Big Data: To Be Used Wisely In A World Governed By The Heart ................................ 32
Moneyballing Talent Discovery .................................................................................. 33
How Not To Use Data to Find Talent ............................................................................. 33
The Next Big Thing: Chosen By The People, For The People ....................................... 38
Really Big Data: Using Numbers To Make A&R More Efficient ..................................... 42
Big Data: To Be Used Wisely In A World Governed By The Gut ................................... 48
Conclusion and Recommendations ........................................................................... 49
Bibliography ................................................................................................................. 54
Figures 1 Screenshot showing the comparison between the Top 40 UK Official Singles Charts
and reoccurring songs over a ten-week period (March – May 2014), in the Shazam Top
200 UK Charts………………………………………….……………………………………...16
2 Google’s Music Timeline……………………………………………..……………………..20
3 The Echo Nest’s Music Segments…………………………………….…………………..26
4 The Genre Ladder……………………………………………………………….……….....31
5 Graphs plotting the change in preference of certain features that dictate hit-
predictability overtime…………………………………………………….…………………...36
6 Screenshots from The Next Big Sound dashboard…………………………..………….45
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Executive Summary The initial intention of this paper was to look at how big data can be married with cultural
theory and semiotics in order to enhance A&R practices and methods of consumer
understanding, as neither is being sufficiently looked at currently in the industry.
Big data provides the answers to questions involving ‘what’, ‘how’, ‘where’, and ‘when’.
What it is perhaps not excellent at doing is providing the solution to ‘why’. For these
questions, the solutions offered by big data, alongside traditional methods of A&R and
consumer understanding, should be framed within the context provided by cultural
theory and semiotics.
When research began for this paper, however, both subject areas of big data and
cultural theory turned out to be too big individually to be properly covered in one essay
of this length. In the end, big data was chosen as the topic of this essay, for the reason
that the music industry is already cautiously edging toward embracing big data, with the
emergence of companies such as Next Big Sound, Musicmetric, The Echo Nest and
with partnerships such as those between Twitter and 300, Spotify and The Echo Nest,
and Warner Music Group and Shazam, forming over the last few quarters.
It seemed more exciting and more appropriate to comment on and analyse the shift in
the way A&R and consumer understanding is being carried out rather than discuss the
benefits of cultural theory for the music industry.
Moreover, whilst there has been a considerable amount written about cultural theory
with respect to the music industry, there is comparatively not so much academic writing
involving big data; which added a further level of interest and challenge to this piece.
On this basis, the research led to an article in Forbes from which the title of this paper
was derived. The term ‘Moneyball’ comes from a nonfiction book about baseball. It
tells the story of how a financially limited baseball team went on to become a success
based on the decision to put aside traditional subjective methods of consideration in
choosing players and instead opting for the statistical analysis of objective data about
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the same players. This method has now been widely accepted as an improved process
of player selection across teams.
Similarly, the music industry harbours and encourages situations where business
decisions, such as choosing to sign an artist or targeting a particular audience, are
based on subjective judgments, gut feelings and past experience. This essay looks at
the inclusion of big data in this subjective process, divided into two chapters.
The first chapter - Consumer Understanding - begins with a discussion concerning the
deals mentioned above and leads onto a section involving analysis of Shazam charts.
This section aims to show the potential value in Shazam data analysis and how it can
be used to better understand consumer tastes in comparison to sales data or radio
plays, due to the nature of the application.
This is followed by a segment on how big data is being used elsewhere, from efforts to
understanding sentiments to the advanced work of The Echo Nest in consumer
segmentation to Spotify’s use of algorithms and their method of collaborative filtering,
which also raises the question of segmentation by genre. Here, segmentation by mood
or activity is introduced and it is argued how this type of segmentation can only be
successful alongside genre segmentation, rather than as an alternative to it.
The final key section of this chapter delves deeper into the state of genre and why,
therefore, big data is even more relevant now than it was before.
The second chapter - Talent Discovery - begins with a look at previous work done on
attempting to predict or indeed produce the next big hit, such as the research around Hit
Song Science, and why it did not work. The issue was not that big data has no place in
A&R, but rather that the wrong hypothesis was proposed: that future hit songs can be
predicted by looking at musical patterns within previous hit songs.
Instead of attempting to understand the patterns in songs, this essay proposes that big
data should be used to understand patterns in the buzz around songs that are being
created. It does not claim to predict hit songs, but rather notice the future hit song first.
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To demonstrate this point, the deals between Warner Music Group and Shazam as well
as Twitter and 300 come into the discussion here.
This follows on to highlight the importance of social media and online data in talent
discovery. Given the deluge of data the industry is now facing because of this, it further
validates the importance of companies such as the Next Big Sound and Musicmetric in
analysing big data to make sense of this deluge.
The conclusion is not to suggest that big data analysis should replace existing and
traditional practices and it acknowledges the fact that those methods, based on
subjectivity and experience, are crucial. Rather, it is about augmenting those methods
with big data analysis.
This essay argues that in an era of necessary financial constraint and in the interests of
minimising exposure to risk (compared to the boom-time1990s), the inclusion and
analysis of big data can help to not only considerably reduce the risk of subjective
business decisions and strengthen those decisions, but also reveal new opportunities
for the business and make the process of A&R and consumer understanding more
efficient and effective.
Recommendations:
1. To look at how cultural theory and semiotics can tie into big data
analysis to provide a fuller picture.
2. To examine the place of big data analysis for other areas of the
industry beyond major record labels.
3. Ideally, to carry out proper statistical analysis of the data, for example
on Shazam charts, which has been discussed here but is beyond the
scope of this essay.
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Foreword Prithwijit Mukerji’s MA Music Business Management Project paper is an empirical study
of the use of social media Big Data to better anticipate consumers’ tastes and better
inform A&R processes and decision-making.
By Spring 2014, this was an extremely current subject, the stature of which developed
significantly during the course of his research including Shazam’s link-up with Warner
Music Group (Feb 2014) and the purchase of The Echo Nest by Spotify (March 2014).
This paper successfully analysed current business trends incorporating latest research
and industry-based interviews and as such offered an overview of an emerging and
exciting field of study. Prithwijit Mukerji was an outstanding participant on the course,
securing grades of the highest level for some outstanding and original work.
Additionally, he is a real social leader and was a hub for other students’ social lives,
demonstrating that committed music study can combine hard work and leisure. Offered
an internship with Universal Music Group whilst on the course, this was transferred to a
full-time marketing assistant position within weeks of ending his studies at Westminster.
On the strength of this paper and his academic achievement during his studies,
Prithwijit was awarded the MusicTank Award for Business and Innovation,
Autumn 2014.
Sally Gross, Course Leader & Graham Ball, Deputy Course Leader
MA MBM, University of Westminster
MA Music Business Management
University of Westminster’s MA MBM is truly unique, being the first and longest-running
of its kind in the UK. As such, it is regarded by the music industry as a Gold standard in
music business education, preparing and delivering consistently high-level, next-
generation music industry leaders and entrepreneurs: MA Details. Other Courses…
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MUSICTANK.CO.UK | MONEYBALLING MUSIC 7
About MusicTank MusicTank is a pre-eminent information hub for UK music business, addressing change
and innovation through informed debate, objective analysis and industry engagement.
Established in 2003, MusicTank has built an enviable reputation for its ongoing and
unique programme of think tank debates, events and conferences, a natural extension
of which is its delivery on incisive reports commissioned from key industry figureheads.
Shortlisted for the 2012 Times Higher Education Leadership and Management
Awards - Knowledge Transfer.
Report Catalogue
Easy Money? The Definitive UK Guide
To Funding Music Projects
Remi Harris, 2013
The Dark Side Of The Tune: The Hidden
Energy Cost Of Digital Music
Consumption
Dagfinn Bach, 2012
Remake, Remodel: The Evolution of the
Record Label
Tony Wadsworth with Dr. Eamonn
Forde, 2011
Let's Sell Recorded Music
Sam Shemtob, 2009
Meet The Millennials
Terry McBride, 2008
Beyond The Soundbytes
Peter Jenner, 2006
Become a MusicTank member today: www.musictank.co.uk
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About This Paper
Published by:
MusicTank Publishing
University of Westminster
Watford Road, Harrow,
Middlesex
HA1 3TP
If you have any comments about this paper we would love to hear from you:
musictank.co.uk/about/contacts | [email protected]
First published London, January 2015
Copyright © 2014 Prithwijit Mukerji
The copyright in this publication is held by Prithwijit Mukerji. This material may not be copied or
reproduced wholly or in part for any purpose (commercial or otherwise) except for permitted fair
dealing under the Copyright, Designs, and Patents Act 1988, without the prior written
permission of University of Westminster. The copyright owner has used reasonable endeavours
to identify the proprietors of third-party intellectual property included in this work. The author
would be grateful for notification of any material whose ownership has been misidentified herein,
so that errors and omissions as to attribution may be corrected in future editions.
ISBN: 978-1-909750-06-7
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Introduction
This thesis borrows its title from a 2013 Forbes article, Moneyball For Music: The Rise
of Next Big Sound, which referenced the 2003 nonfiction book by Michael Lewis,
Moneyball: The Art of Winning an Unfair Game. The book follows the story of Billy
Beane as the general manager of the baseball team Oakland Athletics. Despite the
team being in financial difficulty and therefore having very little chance of buying good
players, Beane applied statistical analysis and focused on non-traditional objective
indicators over traditional subjective measures of performance (Ackman, 2003) to
acquire the right players at low cost, win twenty games in a row (Thurm, 2012) and turn
the team into “one of the most successful franchises in Major League Baseball” (Lewis,
2003).
The methods used by Beane have gone on to be implemented widely by other baseball
teams and changed the way players are selected (Woolner, 2007). Currently, "if you're
not heavily invested in the statistical approach now, you've missed the boat” (Slusser,
2011).
If newer and more relevant sets of data can be used and analysed correctly to spot the
right talent in baseball, the idea is that perhaps this can also be done for music, not only
for talent discovery but also for understanding the consumer.
Spotting and developing musical talent that is able to bring in commercial gains has
been (and will no doubt continue to be in the foreseeable future) a game governed by
the gut instinct and experience of A&R individuals, backed by trusted sources of
recommendation. But to inform their decision making process in a digitised world
seemingly over-supplied with musical content and affected by reduced revenues for
A&R departments to develop artists, it is now common practice for A&R departments
already to go beyond trusted recommendations and gut instinct and back this up with
social media statistics such as Facebook Likes, Twitter followers, YouTube views and
SoundCloud plays to filter out artists.
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Data is already helping A&R in decision-making processes. The use of data to
understand consumer behaviour and inform business decisions in music is not a new
concept, with the industry continuing to draw insights from qualitative and quantitative
market research techniques – whether that is hiring an external company to run large
questionnaires or a case of forming ideas about consumer tastes based on data points
such as sales figures and radio plays. Naturally too, the same social media data sets
that are used to spot talent are also used to understand consumer tastes.
One might argue that the status quo is working for the industry, and indeed, there is not
much need to further delve deeper into the use of data: why is it necessary to analyse
dry statistics in such a seemingly subjective industry?
This thesis disagrees with maintaining this status quo. It advances the notion that if
further opportunities are available to find talent more effectively, whilst better aligning
this new talent with the consumers’ true preferences by utilising the relevant analysis of
the right data, then these opportunities should be explored. This thesis aims to
demonstrate that objective data analysis is highly valuable to subjective qualifiers and in
fact takes them further.
Whilst the music industry is using data, there is better data out there that can be put
through more advanced forms of analysis to bring out deeper insights, and eventually
have greater positive commercial impact on the business. This better data is ‘big data’,
data that is “…too big, moves too fast... [but within which] lie valuable patterns and
information, previously hidden because of the amount of work required to extract them”
(Dumbill, 2012).
By ‘Moneyballing Music’ then, this thesis proposes incorporating big data and objective
statistical analysis into the existing methods of market research and A&R techniques to
deliver enhanced results. Companies such as The Next Big Sound, Musicmetric and
The Echo Nest are making the incorporation of big data analysis into music possible,
whilst new deals between companies such as Shazam and Warner Music Group or
Twitter and Billboard provide a sense of optimism and further opportunities for big data
inclusion.
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This thesis aims to analyse these developments as well as highlight suggestions for
how existing platforms, for example Shazam, can be utilised further than they are being
now to aid consumer understanding and talent discovery.
In order to demonstrate the application’s efficacy to the industry, Shazam charts were
collected and topline statistical analysis carried out over a ten-week period and then
compared to The Official UK Charts.
Unlike the original Moneyball, processing big data for music in-house requires newer
systems that may not be supported by the existing infrastructure of the company, whilst
external and specialised help requires additional revenues. For this reason, the thesis
will focus mainly on major record labels, which have more financial capital in
comparison to independent record labels and therefore be better resourced to
implement change in their operations or bring in specialist talent.
This is not to say that these developments are purely for those with capital; rather that
at this moment, as the music industry sits on the cusp of embracing big data analytics, it
would be more valuable to look at the analysis of change implementation where it is
possible and occurring rather than carrying out a discourse on revolutionising the
industry as a whole with big data, which is not yet possible.
Keeping that in mind, employees of Universal Music Group across Digital, Market
Research and A&R were interviewed in order to capture the work currently taking place
in the record label that accounts for the dominant part of the market. To provide
balance to the thesis and represent an independent label (which can still be considered
to have capabilities to embrace big data analysis), an A&R Scout and a Digital Product
Manager from Ministry of Sound were also interviewed.
The purpose of the following thesis is not to suggest that big data analysis should
replace existing methods, but rather that it will evolve existing practices to produce
better commercial results, bring the right talent in front of the spotlight and give the
consumer what they truly want.
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Moneyballing Consumer Understanding The Situation At Present
“Music is experiential and fundamentally social – it is socially constructed, socially
embedded and its nature and value are inherently social” (Bowman, 1998) (O’Reilly,
Larsen, Kubacki, 2013).
Given this core characteristic, in a digitised environment of music consumption where
social data is more readily available about consumers, it is not difficult to see why both
the use and thirst for consumer behaviour data is growing.
Databases holding information about target audiences continue to be employed and
developed to inform marketing decisions at major labels such as Universal Music Group
(UMG). Alongside this, the analysis of social media statistics delivered through sites
such as Facebook, Twitter and YouTube has been a well-established practice to better
gauge consumer interests for some time now, too.
UMG have invested in creating their own internal analytics tools that pull social media
data together amongst other data points. This includes the use of a dashboard and a
social CRM (Customer Relationship Management) tool which allows audience analysis
using not only demographics such as age and territory, but it also indicates the type of
products the audience might have an affinity toward, which can then be used to look at
brand partnerships. So; “let’s say we notice that 95% of an artist’s fans also ‘Like’
ASOS on Facebook, we could approach ASOS with a campaign plan knowing that they
are a relevant brand for an artist campaign” (Bennett, 2014).
Whilst relatively impressive, fundamentally, UMG’s business is music and not data
analytics, which undoubtedly and correctly mean that the focus for the company lies on
the former.
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To gain additional knowledge on online consumer conversations around relevant
subjects, UMG have been utilising external social analytics companies such as Topsy,
which “can decipher how often a term is tweeted, find an influential person on a specific
subject, or measure the exposure of an event or campaign” (Macmillan, Wakabayashi,
2013).
With a searchable database of every single Tweet on its database since the launch of
Twitter (Wagner, 2013) – which stood at 300 billion in March last year (Smith, 2014),
and with a previously estimated 500 million tweets sent per day (Holt, 2013), this gives
Topsy users a staggering amount of information to work with in understanding what
consumers are talking about.
Importantly, in “2013 alone, Twitter users sent more than one billion tweets about music,
with 100 million of those tweets coming from music-related accounts. Additionally in
2014 people using music services sent more than 40 million tweets about the music
they're playing” [last updated 27.03.14] (Hernandez, 2014).
In hindsight, it was only a matter of time before Billboard, which is built on over 200
exclusive charts, announced its recent partnership with Twitter. By tracking US music
conversations, Billboard will create further charts that “will reflect the top tracks being
discussed at the moment and over an extended period of time on Twitter, as well as
surface the most talked about and shared songs by new and upcoming acts” (Billboard
Staff, 2014).
This will publicly make available and rank, in real-time, consumer music trends for the
largest music market in the world. From a music marketers’ perspective, this presents a
clear view of what kind of music the consumers are choosing to talk about online as
they discover it, thus highlighting trends that can be used to better understand shifts in
consumer tastes more dynamically without having to directly ask the audience about
their preferences, in contrast with more traditional market research methods.
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Another tool which the industry has begun to use, although mainly for A&R purposes
(which will be discussed later) but which can also be used to track changes in music
tastes over a period of time, is Shazam.
This is the smartphone application with 25 million tracks in its database that connects
over 450 million people globally (Shazam, 2014) and allows its users to discover songs
they hear in the world around them via their phone.
Its 90 million monthly active users are voluntarily tagging 17 million songs, TV shows
and ads every day to identify the tracks they like, causing Shazam-driven music sales of
more than 500,000 a day – seven per cent of all global digital track sales (Dredge,
2014).
As the “exchange and consumption of popular music are becoming automatic,
weightless and hence, more privatized, mobile and invisible” (Rojek, 2011), this
provides marketers with another possible set of data with which to understand
consumer music tastes, but with the added benefit that it is collected through a
consumption platform that is congruous with the way music is partly exchanged and
consumed at present.
Some of this data is already publicly available. Shazam delivers weekly Shazam charts
via email to anyone who requests it, which includes charts of the top 200 most tagged
tracks and most tagged new releases by key territories across America (Brazil, Canada,
Mexico, USA), Europe (France, Germany, Italy, Spain, UK) and Australia. Therefore
the industry already has access to this top-line data.
However, it is perhaps not being fully utilised to its full potential from a consumer-
understanding perspective just yet. As Jack Fryer, Head of Insight at Universal UK,
explained on the potential of such applications (2014): “the emergence of data-
generative tools like [Shazam] is extremely powerful. You absolutely can’t argue with
that kind of information – it’s unprompted.”
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Shazam: A Case In Favour Of A Largely Untapped Resource
In order to evaluate how an unprompted source of consumer data compares with
definitive data such as sales figures in terms of understanding consumer tastes, the
Shazam Top 200 UK Chart was looked at weekly over a period of ten consecutive
weeks, dating from Tuesday 4th March to Tuesday 6th May, 2014 - Fig. 1.
To align this comparison with the UK Official Singles Charts, only the top 100 were
chosen for analysis. Furthermore, on average, the life of a single on the UK Official
Singles Chart is a little more than six weeks (Hawtin et al. 2014) (Musicstats, 2013) and
generally Shazam’s charts can predict what will be on national official charts a month or
so in advance (Knopper, 2014).
This indicates that in theory and on average, a track that is popular enough for the mass
music consumer should stay in the top one hundred of the Shazam charts for at least
ten consecutive weeks. This includes the four-week lead up to the track entering the
official charts that Shazam claims it can predict plus, all other things remaining equal,
another six weeks for an average single to continue to be discovered (and therefore
tagged on Shazam) whilst it remains in enough of the public’s interest (to be purchased
and therefore stay on the official charts).
Across the ten-week period, thirty-two tracks for thirty artists were tagged every week,
showing a consistent preference in certain styles of music for Shazam users. The
overarching genres of music were, unsurprisingly and broadly, electronic and dance,
pop and modern RnB – highly representative of the dominant genres in the current UK
Official Singles Chart. On the surface, this does not provide any truly valuable insight to
a marketer than the existing data of record sales and radio airplay.
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Fig. 1. Comparison between the Top 40 UK Official Singles Charts and
reoccurring songs over a ten-week period on the Shazam Top 200 UK Charts for
the period Tuesday 4th March to Tuesday 6th May, 2014.
The advantage in using Shazam charts over sales or radio charts, however, is that they
are spontaneous, free and independent, presenting purely consumer music preference
data; and it is inherently digitised, whereas radio is not.
There are two aspects to this:
Firstly, digitisation has allowed for greater levels of control, creativity and participation
by audiences, leading to the erosion in power of “industrial, professional and institutional
cultural production [and giving way to a] more democratic and vigorous system”
(Hesmondhalgh, 2013) of communication in music.
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This has resulted in a reduction of power and influence held by traditional gatekeepers
(such as key radio stations) and marketers at major record labels to dictate which tracks
are heard by and pushed onto the consumer along with heavy advertising.
The music industry is being ever urged to employ more pull-marketing tactics (i.e.
encouraging and attracting the consumer to actively seek out the product) alongside
existing push-marketing tactics (i.e. taking the product to the consumer). Indeed, to
align their content more accurately with their target audiences and pull audiences in,
Radio 1 is now looking to Shazam to help them guide their playlist decisions over how
many people are texting in to the programme (Lowe, 2014).
Due to the relatively independent nature of the Shazam charts, it can be proposed that
these charts are more reflective of consumers’ true music preferences than radio charts,
for example, which are dictated by gatekeepers at radio stations.
Secondly, there is the composition of music consumption in the UK to consider,
whereby sales figures alone may no longer be an accurate representation of artist or
song popularity.
Looking at the previous year, the UK recorded music market grew by 1.9 per cent in
2013. This growth was driven primarily by streaming, which grew by over 41 per cent
on 2012 (Ingham, 2014).
The importance of streaming is also being acknowledged by the industry, so much so
that for the first time in history, streaming data from services such as Spotify, Deezer,
Napster, O2 Tracks, Xbox Music, Sony's Music Unlimited and rara have been included
in the UK Official Singles Charts (Lane, 2014).
Currently, therefore, it would be unwise to ignore the impact of streaming revenue on
the business. This in turn begins to provide a good argument for the industry to also
look at other non-sale metrics for music popularity, such as Shazam.
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Given these two conditions, it may be worth delving deeper into the Shazam data, which
is what Warner Music Group (WMG) chose to do by forming a strategic alliance earlier
this year (2014), in order to bolster its A&R efforts (to be discussed later in this report)
and proposed to create, as Rob Wiesenthal, COO of WMG termed it; “the first crowd-
sourced, big data record label” (Houghton, 2014). This deal also gives WMG access to
“enhanced deep data on fan behavior” (Shazam, 2014).
The application’s Terms and Conditions state that the company may sometimes ask the
user for information such as their name, telephone number and date of birth, whilst it
also automatically receives and tracks data about the mobile device and may detect the
user’s location if opted-in. Shazam also states that if the user connects through
Facebook or other social networks, the company may receive some data from the
network – such as name, gender, age, locale and email address (Shazam, 2014).
Currently, the only way to access and sync Shazam tags online is to sign in with
Facebook (Shazam Support, 2014). If WMG is receiving this sort of data, this can help
the record label to categorise these trends by demographics and thus further
understand consumer tastes on a more granular level. If used correctly, this may
indeed give WMG a strategic advantage in market research over competitors. This is
because whilst similar analysis could be performed on national official charts (through
sales data) or radio charts (through listener data), another benefit Shazam provides
over other charts is to do with timing.
If Shazam is truly able to predict what will appear in official charts, it can help deliver
foresight rather than hindsight, or at the very least, help marketers to understand
consumer trends sooner and as they happen.
Despite the lack of access to Shazam’s granular data, it may yet be hypothetically
possible to utilise what is currently available in order to bring out further insight. In the
absence of demographic information, the focus shifts toward changes in the content
itself as an indication of consumer behaviour and tastes.
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Each artist in the Shazam Top 200 UK charts could be given a genre label. These
labels should be a manageable set capable of being tracked; more descriptive than
broad genres such as electronic, rock or pop, whilst avoiding extremely specific labels
such as industrial-psych-punk.
With a particular set of genre labels decided upon, new tracks entering the charts can
also be categorised under these labels. This allows the grouping of artists into more
convenient clusters, which in turn allows for analysis of which genres are becoming
more or less popular over time.
This can be seen in two ways:
1. As songs receive more or less tags over time and travel up or down the charts, it
would be possible to track how the related genres are also moving through the
charts.
2. As new tracks enter the charts and replace existing ones, it would be possible to
analyse the popularity of genres based on the proportion of the charts they make up
and based on the sections of the charts these clusters occupy.
Moreover, by looking within each cluster, it would be possible to gauge the most popular
tracks within each genre, enabling marketers to better recognise success. This idea is
based on the concept of Google’s Music Timeline - Fig. 2 - which charts the shifts in
genres over time…
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Fig. 2. Google’s Music Timeline (each genre can be expanded to reveal sub-genres,
which then can be expanded further to reveal the timeline of specific works by artists
that make up the genre as a whole)
Thus, Shazam can not only potentially highlight short-term, dynamic shifts in consumer
tastes in advance, but also help to better demonstrate – in comparison to existing sales-
driven metrics – how consumer tastes are changing over time, or indeed, the direction
in which these tastes may be heading.
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Arguably, every data set has its limitations and Shazam is no different. Given “there’s a
world-view, then a market-view, then a Shazam-view” (Fryer, 2014) of consumer
preference, Shazam is perhaps not necessarily representative of the general
population. Despite its large and growing user base, Shazam is primarily a smartphone
and tablet application (although it is also possible to use it via desktop and laptop
devices). In January this year, smartphone penetration was at 56 per cent for all UK
adults (Nkwocha, 2014) whilst tablet penetration was at 43 per cent of the total UK
population (O’Reilly, 2014).
With regards to how much of this audience engage with Shazam – “the consumer-
insight agency Nielsen published data [in 2012] demonstrating that four out of five of
those who have a mobile phone or tablet monitor it while watching television” (Kay,
2013).
This raises three points:
1. The data does not account for approximately half of the UK population who do not
use smartphones or tablets. However it is worth questioning whether that is a
genuine limitation.
Smartphone users tend to be in the age group of fifteen to 44 year-olds, over a fairly
equal gender split (with a slight skew toward males) across the ABC1 (middle class)
socio-economic group (Weareapps, 2013). The Shazam audience follows the
general smartphone-using audience, whilst Shazam for TV is used mainly by 25 to
54 year-olds, with the second largest category being 18 to 34 year-olds (Berelowitz,
2012).
As digital sales and streaming services gain more dominance, according to the
British Recorded Music Industry (BPI), it is the younger audiences who are not only
spending more on digital music but also tend to spend the most overall – one third
more than any other segment (BPI, 2013).
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This segment falls within the smartphone and tablet using audience who engage
with Shazam. Therefore, if the main music-buying audiences that affect sales
figures reflected in the UK Official Charts are represented by Shazam users, the
“Shazam-view” may indeed be sufficiently aligned with the UK “market-view” to be a
considered as a significant data point.
2. There is an argument to suggest that Shazam usage is restricted to certain
environments and situations, such as whilst watching TV or listening to the radio,
and hearing recorded music in public places such as in restaurants or in nightclubs.
Therefore it follows that only music appropriate to these settings will be possible to
Shazam – ruling out, for example, live concerts, thereby limiting the representative
scope of the data for all types of music. A look at the UK Top 200 Charts will show a
lack of guitar-based indie or rock music, and almost no sign of certain other genres
such as classical; yet this is also characteristic of the current UK Official Charts –
certain genres are simply not commercially as popular as others.
Further, when it comes to discovering new music, irrespective of genre, a live show
for the general population is not typically the correct setting for this activity. Rather,
consumers unsurprisingly prefer to pay for tickets to experience live shows by artists
that they are already fans of (and hence would not need to use Shazam because
they already know the songs).
Since radio remains the most popular way to discover new music for the general
population (Fitz-Gerald, 2013), followed by TV, friends, YouTube and Facebook
respectively (Music Ally, 2012), Shazam becomes a relevant companion in the these
situations, making the application’s data also more pertinent for a major record label
investing mainly in popular music genres.
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3. With a feature such as AutoTag now available - which automatically tags songs in
the background, whilst the phone owner watches TV (Perez, 2013) - Shazam usage
is evolving from purely song-tagging to a second-screen experience with TV. Now it
is possible to engage more deeply with the artist or original subject (such as a Super
Bowl half-time show or the Grammys) and access and revisit exclusive digital
content through the application, and link to external sites to buy tickets and
merchandise.
As Shazam moves more towards TV activity, more of the tags will involve songs
heard on adverts, films and popular TV shows. For a track to get to this level
requires it to have obtained support from gatekeepers such as publishers and
brands. In 2012, 85% of the application’s users were already ‘Shazam-ing’ TV
shows and adverts equally (Hockenson, 2012); this has perhaps increased further
since.
Additionally, Shazam is also used whilst listening to the radio, which remains one of
the UK music industry’s key gatekeepers. Hence, it can be argued that the music
that is being ‘Shazam-ed’ is not necessarily that which consumers actively look for
and discover themselves. It is still something that is marketed to them through a
specific platform and presented to them around content they are interested it,
combined with an easy-to-use, non-intrusive mobile application.
Nevertheless, the application does help to filter out and highlight more clearly what
the audience prefers out of the multitude of songs being marketed and presented to
them via TV shows, adverts and radio. Consequently, it is important to not disregard
Shazam but perhaps adjust down the idea of Shazam charts as a wholly true
reflection of the consumers’ completely unprompted, pure and independent choice in
music preference.
If exploited correctly, and in conjunction with other market research techniques,
Shazam can become a useful tool in providing more granular, up-to-date insight into
consumer music tastes.
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Advanced Moneyballing: Sentiments, Streaming, Algorithms
Certain companies are taking the analysis of the music consumer beyond demographic
segmentation, whilst interpreting social statistics in new ways, beyond the basic
analysis of the number of Twitter mentions or Facebook Likes.
In July 2012, EMI Music in partnership with Data Science London held the Music Data
Science Hackathon, a global event where “more than 1,300 formulas and ideas were
submitted in answer to the question: ‘Can you predict if a listener will love a new song?’”
(Record of the Day, 2012).
The data used consisted of one million interviews involving topics such as level of
passion toward specific genres and favourite artists, preferred methods for music
discovery, views on music piracy, streaming and music formats (Kotenko, 2013).
Amongst various data-driven insights, basic demographics such as age and gender
were shown to be particularly weak indicators of music preference.
These events strongly support the idea that other factors beyond demographics should
be looked at in understanding consumer music tastes.
The next hackathon, for example, aims to look at the relationship between music and
emotions, whilst the “winning visualisations from Gregory Mead, CEO and co-founder of
Musicmetric, included a graph plotting the relationship between how consumers feel
about particular artists and the words they use to describe them” (Record of the Day,
2012).
More so, Mead’s Musicmetric “collects all artist data automatically from across the web
and is the only dashboard to integrate benchmarks across” social media, illegal
download site BitTorrent and online mentions ranked by influence and sentiment
(Wired, 2012).
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Now consider that 345 million tracks were downloaded via BitTorrent alone in the first
half of 2012, whilst in the following year seven million individuals in the UK used at least
one service where content was hosted illegally each month (BPI, 2013), and alleged
fans who are neither engaged nor loyal can still be bought on social networks such as
Facebook to inflate numbers...
By incorporating the study of sentiments alongside the numbers, and the unfortunate
but very prevalent illegal consumption habits alongside data from legal channels,
companies such as Musicmetric (which will be discussed in the A&R section) can help
deliver clearer insights into the actual tastes of the music consumer that go beyond
existing research – insights which could help guide marketers to give consumers the
music they truly want legally.
Particular studies showed that streaming could be the answer to curbing piracy (Knapp,
2013) and combined with the fact that streaming is becoming increasingly popular,
another impressive company capitalising on the rich data available through these
means of music consumption is The Echo Nest. This is a self-defined music
intelligence company, with currently over one trillion data points concerning
approximately 35.5 million known songs for over 2.7 million known artists, serving 432
music applications (The Echo Nest, 2014).
The company uses this data to help music services such as Rdio, Rhapsody and
Spotify - and was acquired by Spotify recently (Etherington, 2014) - to recommend new
songs based on previous song choices and playlists.
One solution (amongst several) that The Echo Nest offers is their Music Audience
Understanding capability. By applying their Taste Profile technology on anonymous
listening, the solution can gather data on each fan’s music activity to understand their
unique tastes and preferences, through artist plays, favourites, ratings, skips and song
plays. It then creates dynamic, music segments to understand music tastes across
entire audiences through the segmentation of audiences by over 710 genres and styles
of music, affinity to artists and several unique behavioural segments as shown in Fig. 3
(The Echo Nest, 2014).
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Fig. 3. The Echo Nest’s Music Segments (which change as users’ music preferences
and listening habits change over time).
Whilst the Music Audience Understanding solution is designed to improve predictive ad-
targeting and drive better targeted marketing and advertising strategies, what it
demonstrates is that with the amount of data available, there is a real opportunity to
better understand consumers on a level beyond just their music preferences based on
traditional demographic-segmentation models. This information can even be used to
“teach its algorithms what movies you'll watch - and even how you'll vote” (Vanderbilt,
2014).
This level of predictive profiling can potentially provide marketers with a wealth of
information to not only understand consumer music tastes, but also give insights into
their online personalities and behaviours, plus how and what kind of culture these
consumers are choosing to interact with.
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This in turn can feed back into their music preferences, the use of which marketers can
serve the consumer more bespoke music content - thereby better aligning what the
consumer truly wants with the talent that the A&R team have discovered and
developed. Another method of understanding consumer tastes through data is what
Spotify calls ‘collaborative filtering’, which partly drives Spotify features such as
Discover and Spotify Radio. Complex algorithms and matrix calculations are employed
in this method of grouping songs together, but the simple and core idea behind this is:
“if a lot of users listen to tracks x, y, z, then those tracks are probably similar”
(Bernhardsson, 2013).
This is based on the Netflix film recommendation model and is similar to the Amazon
purchase recommendation model of ‘users who bought x also bought y’. In comparison
to film, music has the advantage in that it allows for more niches to be formed within the
subject, which means that algorithmic grouping for music tends to be even more
accurate – and explains why this type of grouping naturally leads to recommended
tracks that happen to be in the same genre, without initially using genre to segment and
present songs to consumers.
This system of recommendations is not fool proof, of course. There are often cases of
recommendations that do not always work together. Algorithms do not pick up on
tracks that are being played as guilty pleasures rather than those that truly reflect the
listeners’ actual music tastes, nor does it pick up on other users’ listening to songs
through that profile.
As Mattie Bennett, International Digital Marketer at Universal Music points out: “Just
because you like the Vamps for example, doesn’t mean you’re going to like another
band that sounds like them or looks like them, because ultimately it’s how you feel”
(2014). Music still remains an emotional, intangible entity, governed by mood and
specific, personal experiences. Where emotions of individuals are involved,
understanding the culture around the genre or a group of similar songs, and
understanding why a consumer is drawn toward and likes an artist or group of artists,
for example, under the umbrella of a particular genre, through data, can undoubtedly
only go so far.
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Soundtracks To Your Life: A Playlist For Every Emotion
Several companies already exist which attempt to tackle this issue, moving away from
offering music purely segmented by genre and driven by algorithm, to presenting a
collection of music based on the current mood or activity of the consumer.
This is similar to the way traditional, mainstream radio stations may choose tracks
appropriate to the time of day, and as Fryer explains, radio segmentations “speak of
attitudes and sensibilities and not genre. So you know what a Radio 1 thing is, or what
a Radio 1 show is, which isn’t attached to genre” (Fryer, 2014).
One such solution is Stereomood, a music streaming service that allows the creation of
playlists based on mood and activity. Users can search for the appropriate collection of
songs to match their mood by typing into the search bar how they feel (with suggestions
coming up including ‘I feel funny’, ‘I feel meditation’ and ‘I feel sexy’), whilst the website
readily offers playlists on the home page such as ‘Happy’, ‘Aggressive’, ‘Driving’,
‘Sleepy’ and ‘Work Out’.
Another website offering a similar solution is 8tracks, an online streaming radio service
also centred on user-curated playlists. In this author’s opinion, 8tracks works better
than Stereomood in understanding consumers’ desires to choose certain types of
music, as it allows not only a three-step filtering process (Stereomood only allows one),
but it provides genre suggestions, both broad and niche (Stereomood does not).
Through the 8tracks Explore feature, users can input any mood, activity and genre, and
continue to filter through twice more, giving them a more targeted and personalised
result.
This highlights the importance of the idea that whilst there are broadly agreed-upon
concepts of moods, dividing music purely by emotion and activity will not be fully
successful, given it is so subjective – which is perhaps why mainstream radio has not
always been successful in delivering the music its (desired) target audience wants.
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How one listener might personally interpret ‘happiness’ or choose music appropriate for
‘running’ or ‘sex’ may well differ from another’s. Typically, this difference in
interpretation is dependent on what the listener is familiar with and the culture that
surrounds them and defines for them what the most appropriate soundtrack to certain
moods and activities should be.
With regards to music, culture expresses itself through the similarity of beats, melodies
and characteristics within certain types of songs, which in turn gives rise to a genre.
Hence, genre remains relevant in segmenting consumers, especially when the
consumers are segmenting themselves – and with such genre fragmentation, the
efficacy of data arises once more.
The perceived value in 8tracks’ segmentation by mood and activity, or even Spotify’s
recommendations based collaborative filtering, is to tailor content to that moment and
maximise the personalisation of music consumption of an individual. In this case,
possibly the more accurate way to understand a consumer’s online behaviour and
provide the correct music content to her, then, is to look at what the consumer herself
has consumed (or listened to) previously online.
Using cookie data, marketers can follow a consumer’s journey through the World Wide
Web. Information about this journey, collected in the form of online cookies, can then
be used by marketers to retarget consumers with relevant advertising that directs her to
content she is interested in, including a music product. This is what e-commerce
websites such as Amazon and eBay do, by offering suggestions of products or ads
related to what the user has previously shown interest in.
In this way, if a classic rock fan is searching for KISS merchandise on Google or KISS
songs on YouTube, she can then be served ads directing her to websites that sell the
latest KISS Top 40 Deluxe Edition Blu-Ray DVD, for example. She could also be
served ads on social media, directing her to Deep Purple vinyl, Genesis CDs, or in the
case of a classic rock revival, a new band could be introduced to her in this way.
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Whilst this is more toward how particular music products are marketed to consumers
(for example via companies such as RadiumOne or the Google Display Network),
barring any users deleting cookie data from their computer, and factoring for any
confusion of cookie data due to multiple users on the same computer, this data provides
an unaltered, unprompted log of online behaviour, decision-making and preference-
mapping – offering a golden opportunity to understand how consumers exercise their
tastes and how their passion points (or more importantly, their favourite types of music
and artists) are linked together.
Genres Are Dead. Long Live Genres
When it comes to audience segmentation, The Echo Nest’s methods highlight one
element worth discussing. If successful, their Music Audience Understanding solution
manages to capture the idea that genre is still important in understanding consumer
tastes whilst acknowledging the fact that genre fragmentation is very much present.
Data visualisations from The Echo Nest, such as Every Noise At Once help to show
how genres are fragmented and connected to each other, whilst the Every Noise’s A
Retromatic History of Music shows how more and more genres were created annually,
from 1950 to 2013, with over 150 genres identified from their data in 2007 alone.
As Mark Mulligan proposes in his Music Industry Blog, genre does not matter any less
than it did before; it simply matters in a different way. Mulligan discusses how
previously, music was “the defining cultural reference point” – one could identify a
consumer’s affinity to music by their fashion choices, and given that music was the core
cultural reference point, the average ‘music IQ’ was higher.
Now, however, as “music competes with a fierce array of alternative cultural identifiers
such as branded clothing, extreme sports, networked gaming... [whilst] media
consumption, time and wallet share are also competed for more intensely than ever
before” (Mulligan, 2014), the average ‘music IQ’ has dropped. In essence, now “music
is an accessory of lifestyle architecture. It is one of many codes, not necessarily the
privileged one, that represent who you are and what you do” (Rojek, 2013).
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This has resulted in mass music consumers congregating in an under-defined and
formless middle ground of popular music, whilst many new forms of music also edge
closer toward the pop end of the scale due to the same lack of definition. This does not
mean, as Mulligan states, that genre matters less, but rather, that genre now has a
varying degree of relevance to consumers dependent on their level of music
sophistication.
Whilst one could argue that this has always been the case, perhaps now more than
ever this is being further impressed upon. Mulligan’s Genre Ladder - Fig. 4 - helps to
illustrate consumer sophistication by the largest, least sophisticated group of
mainstream music fans (who like a bit of everything) to the smaller but more
sophisticated group of music fans (where things start to get tribal) to the smallest but
most sophisticated group of aficionados, who engage with and purchase music products
the most.
Mulligan states that rather than dilute the importance of genre, the digital era has led to
a ‘genre renaissance’, where artists have been able to build their own niches using the
online tools available to them.
Fig. 4. The Genre Ladder: How Consumers Interact with Music Genres
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In this sense, genre still remains relevant; rather (and as ever), it is what particular
genres stand for to people that remains relevant. In essence, genre is a segmentation
tool used to classify audience cultures, and it is by gaining an understanding of the
culture that lives in and around that genre of music that will provide better consumer
insights such as why and how the particular style of music relates to someone.
Commercially, it would be more beneficial to study micro-genres and understand the
aficionados rather than attempting to analyse the mass-market, since these not only
contain certain early adopters and trend setters which the mass market eventually
chooses to follow, but this is also the group that will emotionally invest in the music
product most highly, which then typically has higher chances than other groups of
converting to a financial investment.
Thus, with high genre fragmentation leading to higher numbers of (but less physically
visible groups of) aficionados, big data becomes an increasingly useful yet non-intrusive
method through which the consumer behaviour within these cultures can be tracked.
Big Data: To Be Used Wisely In A World Governed By The Heart
Used individually, sales and streaming data, social media statistics, cookie information,
relevant application usage figures and various forms of segmentation can only
illuminate parts of consumer behaviour. Used together and correctly, they can give
marketers a fuller view of the consumer’s identity and tastes. Of course, no amount of
data will be 100 per cent infallible. Yet data should not be expected to be flawless in the
first instance, and cannot and should not be used to replace traditional qualitative and
quantitative market research techniques. In the subjective world of music, “meeting
people is absolutely invaluable. We’re in the business of love and passion, people’s
emotions. I think where data can get you is managing expectations of an attitude or
emotion” (Fryer, 2014).
Indeed, big data should be used to augment existing methods to give marketers a
clearer picture of who their consumer is, what their consumer is doing and how they are
doing it.
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Moneyballing Talent Discovery
How Not To Use Data to Find Talent
In the early 2000s, Polyphonic Human Media Interface (PHMI) developed a product
called Hit Song Science (HSS), which used statistical analysis to predict the chance of a
song being a hit prior to release (Music Industry News Network, 2003).
Allegedly, Sony and Universal have used HSS in the past, which predicted the success
of Norah Jones against industry skepticism and picked out all Maroon 5 hits ‘This Love’
and ‘She Will Be Loved’, based on “20 aspects of song construction including melody,
harmony, chord progression, beat, tempo and pitch” (Tatchell, 2005), and then matching
and scoring new songs against 3.5 million previous hit singles.
The CEO of PHMI, Mike McCready, then went on to form Platinum Blue (now
functioning under the name Music XRay), taking this one step further. Under Platinum
Blue, songs were clustered not by genre or how they sound, but by their hit potential:
“Using a method McCready calls ‘spectral deconvolution’, the company's software can
‘listen’ to a song and, within 20 seconds, extract 40 pieces of information about its deep
structure – its ‘fullness of sound’, the instruments it uses, its chord progressions, the
cadences of its melodies and more... [finding that] about four-fifths of the songs in the
music universe were clumped together in 50 clusters of stars… 80% of all pop songs
that had ever been hits shared a relatively small number of underlying structures”
(Burkeman, 2006).
This suggests there is something measurable about a hit song, and to increase chances
of success, A&R departments should look for certain characteristics in new songs.
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There have also been other efforts similar to HSS to understand the hit potential of a
song. Engineers at Bristol University created the ‘Hit Potential Equation’, which took
into account twenty-three features such as loudness, tempo, energy, which are then
weighted by their importance for a song to be a hit based on previous chart hits over the
last fifty years.
The equation also changes over time to take into account the evolution of popular music
tastes and therefore the weighting each era gives to different features of a song
(Scoreahit.com).
Then “it’s simply a case of mining your proposed song for these exact same features…
and working out whether they correspond to the trends of the time” (Brown, 2011).
Arguably trend lines can be plotted and used to predict which features of a song are
becoming more important for the listener for it to be hit. According to the trends (Fig. 5),
A&R after 2010 should look for something that is quieter, less danceable and
harmonically simpler than previous years.
But this creates an unfavourable situation where the next potential hit is decided by
whether it fits into an equation, regardless of an A&R scout’s experience and
knowledge.
Big data should empower and support action, rather than restrict it to a set number of
features. The issue with this approach in an industry such as music is that it is a
method that is retrospective and one that encourages normative, homogenous output,
whilst evolution of creative product tends to come from the innovation (and sometimes
invention) of material that is forward-thinking, heterogeneous and one that challenges
the norm.
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Fig. 5. Graphs plotting the change in preference of certain features that dictate hit-
predictability over time.
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Arguably, the same ‘hit clusters’ do include a variety of types of songs, such as Van
Halen and Norah Jones, or U2 and Beethoven, suggesting that the same kind or genre
of music is not perpetuated. Nevertheless, it urges one to use data to look for a formula
for a hit song that can be used to manufacture success, rather than using data to spot
talent and musical product that is readily and organically emerging.
It also raises a certain question that is possibly not easily answered: does the use of
these equations cause a self-fulfilling prophecy? “Do things really become popular
because of their innate characteristics at all? If record labels pour money into songs
that computers have told them will be hits, and lo and behold they become hits, who's to
say that didn't happen simply because of the money the labels poured in?” (Burkeman,
2006)
A 2008 study carried out by Pachet and Roy successfully disputed the theory that the
popularity of music can be predicted by analysing sonic patterns in songs.
Pachet expanded on this in 2011, drawing on the work done by Salganik et al in 2006,
which demonstrated that although there are some songs that are statistically favoured
over others, because people rarely ever make decisions independently, the heavy
social influence creates what is called a ‘cumulative advantage’: “if one object happens
to be slightly more popular than another at just the right point, it will tend to become
more popular still” (Watts, 2007).
This makes the popularity of a song at early stages highly unpredictable, i.e. in a social
setting, consumers tend to opt for songs that are seen to be already popular, rather than
songs that may be considered to be of a better quality by the consumers themselves.
This puts into doubt the idea that the intrinsic qualities in a song can be independently
analysed to predict the popularity of the song.
This might be why Music XRay has now become more focussed on providing a service
that uses algorithms to answer briefs rather than help record labels find the next big
thing – for example, to find a song submission that sounds like (but is cheaper to source
than) Blur’s original Song 2 for a particular advertisement.
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A more intuitive way of using data that works more in harmony with human A&R
practices is perhaps to not extensively analyse features in a song, or how the notion of
a ‘hit’ is changing over time, but rather how songs are performing in key areas, and
plotting the predicted performance of that song.
Researchers from the School of Electrical Engineering at Tel Aviv University created an
algorithm that predicted the rise of artists Soulja Boy and Sean Kingston in 2007, two
months before they reached the top of the Billboard charts (Borel, 2008).
The algorithm pulled data from Gnutella, a peer-to-peer file sharing network and found
that the hit potential of a song depends on the artist’s level of success clustered in a
geographical area, and the speed at which this success is growing in that area.
This would be a better way to use data for talent discovery for two reasons.
Firstly, these two factors are things that A&R scouts monitor on a daily basis: looking at
(1) how ‘hot’ an artist is, and (2) how quickly she is ‘heating-up’ in the particular ‘scene’;
therefore it would work better with current A&R practices.
Secondly, it provides a better reflection of the audience’s true and current tastes, as it
pulls data directly from a crowd eager to get new music before others, from a system of
consumption that is more organic (a peer-to-peer network) than the more prompted and
controlled system of the UK Official Charts.
Rather than predict the future, data should be used to spot naturally occurring trends as
early as possible. Data should give the A&R scout a map to know where and when to
spot it, rather than what to spot.
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The Next Big Thing: Chosen By The People, For The People
The music industry has not given up on using big data in aiding talent discovery. The
focus however has shifted from the analysis of patterns in songs to methods that
inherently embrace the idea of cumulative advantage and uses it to the industry’s
benefit – allowing the listeners themselves to flag the future stars.
As previously mentioned, Warner Music Group (WMG) recently partnered with Shazam
for market research, marketing and A&R purposes. Will Mills, Vice President of Music &
Content at Shazam claims that up to 85 per cent of the songs that reach the top of the
Shazam charts go on to lead national charts.
A quick look at the Shazam charts show, unsurprisingly, how dominated the space is by
artists who are already signed, many to major labels, which feeds into Mills’ high
statistic and perpetuates the idea that Shazam charts are merely a strong and indicative
precursor to the national UK Official Charts. In fact, it is very good at doing that.
In 2012, the service predicted Lana Del Rey and A$AP Rocky as breakout artists, and
in 2013 it predicted the likes of Haim (Patrizio, 2013). Both Rocky and Del Rey went on
to top the US charts with their respective album releases, whilst Haim entered at
number 6 in the US album charts and secured a number 1 in the UK Official Album
Chart.
In December 2013, Shazam put together a list of artists to watch for 2014, which
included Sam Smith, Vance Joy and Martin Garrix, explaining that the “Shazam music
team selected the… artists by starting with qualitative industry tastemaker selections,
which is then ranked using the quantitative data of Shazam tags of those artists”
(Shazam, 2013).
This shows Shazam being mindful and aware of the importance of the subjective aspect
of music talent discovery, whilst enhancing it with their consumer data. As Ratcliff
explains in his article ‘Shazam, Big Data And The Future Of Year-End Lists’:
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“Generally people will always look to an individual expert or panel of experts for
recommendations rather than crowd-sourced opinion, which is why the Academy
Awards carries more critical weight than the People's Choice Awards… [but Shazam’s
methods are] a far more scientific approach than traditional methods, which removes
subjective opinion and puts the list in the hand of Shazam’s 400m users” (Ratcliff,
2013).
This suggests that when utilised correctly and in conjunction with existing, subjective
A&R practices, Shazam data can also become a strong asset in talent discovery.
Rich Riley, chief executive of Shazam, claims that big hits only account for a
comparatively small segment of the tags, whilst the majority of music tagged on the
application is of unsigned artists. Complementing Riley’s views, Mike Caren, president,
Worldwide A&R of WMG sees Shazam charts, with its millions of users, as an early
indicator of demonstrating the hit potential of songs (Pakinkis, 2014).
From an A&R perspective, then, it is perhaps not difficult to see why WMG decided to
create a Shazam label imprint to identify unsigned artists for development.
Understandably, WMG pays a significant amount for this exclusive partnership, which in
turn limits the access to data and methods of data analysis for talent discovery for
others, including for this report.
However, the broad principal appears to be that if an unsigned artist’s song is popular –
receiving above five thousand tags – there is a good chance of WMG offering the artist
a recording contract (Rowan, 2014), of course, with other aspects of the artist’s offering
considered.
WMG is, unsurprisingly, not the only record company to have recognised the benefits of
Shazam as a tool to spot new talent. The A&R team at Polydor Records have started
holding two meetings per week: “One is where we bring in stuff and look at what’s been
going on, on the blogs, stuff that we really like, or just things that people who we respect
have told us about. And then we have… a Shazam meeting” (Spinks, 2014).
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Using the example of Lana Del Rey, Jamie Spinks, A&R Scout at Polydor Records,
states that these meetings are for spotting things like Rey, early enough: “…it happened
without anyone really knowing… that’s the sort of thing we’re looking for. It’s that thing
where, OK there’s something that’s going on that somebody’s created for themselves,
that we don’t necessarily know that creeps up on us” (Spinks, 2014).
Shazam can indeed help A&R departments get a closer look at crowd reactions to
music more directly, without having to wait for sales data, or without having to unearth
new talent only through tastemakers and via recommendations. If anything, Shazam
provides a service that is more in line with evolving A&R techniques and facilitates it.
According to Darius Van Arman, the part-owner of independent record label triad Dead
Oceans/JagJaguwar/Secretly Canadian, “…in a lot of ways, A&R is more crowd-
sourced now… Artists are building their own audiences, so sometimes it's okay to have
the fans find an artist for you" (Rys, 2012). This is what Shazam helps record labels to
do - highlighting which artists the fans are themselves discovering without much
prompting from a tastemaker.
The service certainly does not provide the full story and the issues with Shazam were
discussed in the previous section on consumer understanding, but it becomes another
tool with which to spot appropriate unsigned artists earlier, adding another layer of
information to existing practices of talent discovery.
This is not to say that A&R has now become fully reliant on crowd-sourced numbers as
a rule, rather than trusted sources. Spinks will focus first on SoundCloud and music
blogs to find the music, and then use Facebook and Twitter to look at how consumers
are interacting with that music. In fact, Spinks does not feel Twitter is a good way to
find new talent, rather it is seen more as a way of seeing how, once that talent has been
found, consumers connect with the artist or track.
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On the contrary, Sam Lowe, A&R at Ministry Of Sound, the highly successful
independent record label with a focus on dance music, does use Twitter to find new
music. Lowe however uses the social media platform as an extension of listening to
tastemakers offline. When asked how important Twitter is to A&R, Lowe explains: “It’s
brilliant. One of the best ways to find music is what these cool, current DJs are playing,
their networks of people are very important. Once they get to that stage where they’re
known for being DJs, then all the other DJs want to be friends with them. You can see
through Twitter who the most popular ones are and people are always Tweeting those
guys. So I use Twitter a lot, because they’ll post tunes when they’re on the playlists for
example” (2014).
Taking this idea of tracking tastemakers via Twitter and expanding it vastly with the
power of big data, Lyor Cohen, the former CEO of Recorded Music at WMG, unveiled
the new partnership between Twitter and 300, his new record label at Midem 2014. The
aim of this deal is to mine the vast amount of music conversations on Twitter to spot
signs of excitement around new artists, discover and sign them.
Bob Moczydlowsky, Head of Twitter Music, explains that the purpose of the deal is to
answer questions such as: “Is there a guy in Chicago who, when he tweets about artists
it makes a meaningful impact on the growth or size or exposure of that artist. Is there a
tastemaker or a venue or a fan, a consumer in a specific location whose Tweets about
artists are more meaningful than others? Who genuinely are predicting the future
success of these artists” [sic] (Pham, 2014).
This partnership provides 300 the access to information that is also not publicly
available, such as location tags, whilst this data “could reveal flickers that might
otherwise go undetected… Imagine, for instance, a music executive getting an early
lead on a hot new rapper by tracking the most influential Twitter users in the rapper’s
local scene” (Sisario, 2014).
If successful, the Twitter-300 partnership will show the use of data for A&R not as a
separate area of study, but one that is intuitive, congruous with and enhances offline
A&R practice of following tastemakers.
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Really Big Data: using numbers to make A&R more efficient
The analysis of data at this level, however, is yet to be wholeheartedly incorporated into
everyday A&R at record labels. Current data analysis is still what can be considered to
be largely manual. Facebook Likes, Twitter followers, SoundCloud listens, YouTube
plays, along with tips from tastemakers via blogs and relevant radio stations, plus sales
data on particular iTunes charts are, although valuable, not groundbreaking or novel
methods of using data in the A&R process.
These existing practices of data analysis continue to become more important and
common given the aforementioned change in the role of A&R, fuelled by the increasing
opportunities social media data offers to the A&R process.
Thus, the next step in A&R evolution is perhaps the ability to not only look at Twitter, as
per the deal between the social media platform and 300, but to tie the data points
together more quickly and more efficiently, across a larger segment of the vast and
growing social media landscape, whilst providing a way to make sense of these figures.
Universal Music Group has a service called Artist Portal, which allows the record label
to track sales figures and social media statistics of their own artists, but companies like
The Next Big Sound and Musicmetric are aiming to expand this idea for the whole of the
music industry, and labels are catching on.
Next Big Sound has already been working with major and independent labels, as well
as forming a partnership with Spotify at the end of 2013 to deliver data-driven insights
directly to artists, making it much easier than before to interpret data and providing a
stronger case for why the music industry should not ignore online data sources. In brief,
Next Big Sound “analyses social, sales and marketing signals” (Next Big Sound, 2014),
to draw insights about the changing popularity of artists. As shown in Fig. 6, the service
provides a dashboard enabling users to analyse artist popularity by tracking weekly
changes in Facebook page and Instagram likes, Twitter followers and mentions,
YouTube and Vevo video views, SoundCloud plays and even Wikipedia page views.
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By upgrading to premium, paid membership, the user can access information based on
individual music tracks and specific events relevant to the artist (live shows, single or
album release dates, television appearances and mentions in the press), as well as
demographic and geographic data around the online conversation and engagement of
the artist.
When accessing the dashboard through Spotify as an artist, the service also allows the
tracking of personal sales and streaming figures, as well as the benchmarking of
performance against the success of a customisable list of artists. Along the
development process of an artist, then, it is now possible to obtain result figures much
more dynamically than before, and hence adapt strategies quicker.
The company also releases the Next Big Sound Chart in collaboration with Billboard
Magazine, which shows the fifteen “fastest accelerating artists across the Internet most
likely to become the next big sound” (Next Big Sound, 2014). There is also the
possibility to request custom charts.
Recently, a Brighton-based, psychedelic-grunge band signed to independent label
Heavenly Recordings, The Wytches, was present in the top fifteen of the Next Big Thing
Sound Chart. Also present was Wuki, a Denver-based producer of electronic music,
making this type of data particularly useful for major record labels that are able to be
more broadly spread across genres and have the infrastructure and desire to spot talent
globally.
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Fig. 6. Screenshots from The Next Big Sound dashboard (showing changes in
social media statistics, changes in sales vs. streaming figures, and the relationship
between offline activity – an event – and online activity – Wikipedia page views, for an
artist near the time of the significant event)
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In a blog post titled ‘What Social Media Has To Do With Record Sales’ (2012), Victor Hu
and Liv Buli of Next Big Sound analysed the impact of social media on iTunes digital
sales of tracks and albums.
The top four metrics to positively correlate to digital track sales on iTunes were radio
spins, YouTube plays, Facebook fans and Twitter fans respectively, whilst the top four
correlating metrics for album sales were, interestingly, Wikipedia page views, MySpace
plays, Rdio plays and radio spins respectively.
The analysis goes deeper by using the Granger causality test to look at whether there is
a close causal relationship between social media and digital track and album sales.
“The Granger causality test is commonly used in economics and neuroscience. This
concept focuses on whether one set of data is useful in forecasting another. With this
[they were] able to determine whether the inclusion of a particular social media metric in
fact improves the predictability of future album and track sales” (Buli, Hu, 2012).
In both cases, Facebook page views came in the top three metrics, whilst YouTube and
SoundCloud plays were in the top seven. Thus from a marketing perspective, this
demonstrates which platforms and channels artists and record labels should leverage to
maximise sales. But in showing the relationship between these digital touch points and
sales, the study also highlights the importance of using social media data as one
predictive indicator of success when discovering new talent, or when making choices for
which artist to develop.
It is important to remember that these are business decisions, specifically, in a market
where success is at some point unpredictable and affected highly by social influence -
where, although “quality is positively related to success, songs of any given quality can
experience a wide range of outcomes… the ‘best’ songs never do very badly, and the
‘worst’ songs never do extremely well, but almost any other result is possible” (Salganik,
Dodds, Watts, 2006).
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The decision to develop an artist lies not only on the strong belief in their art, but also on
the belief that their art will be popular enough to be commercially successful and
profitable for the business.
As Zack O’Malley Greenburg of Forbes explains, “…according to one study, artist
discovery and development is a $4.5 billion industry, and Next Big Sound removes
some of the guesswork… [it] promises to predict album sales within 20% accuracy for
85% of artists, giving labels a clearer idea of return on investment” (Greenburg, 2014).
Another company doing similar work to Next Big Sound is UK-based Musicmetric, which
launched in 2008. Musicmetric combines the social media statistics of artists across
platforms including Facebook, SoundCloud, Twitter, YouTube and Last.fm to create an
overall social ranking and provides a dashboard through which artist-fan activity can be
tracked on a daily basis.
It also creates charts that can track not only consumption of music via download and
sales, but also consumer sentiment, as well as having the ability to do predictive
modeling.
Earlier this year, Musicmetric introduced two new features: Musicmetric Insights and
Musicmetric Explore. The former “automatically analyses performances across billions
of fan interactions online and is a quick way of seeing who’s hot and who’s not…whilst
the latter delivers an overview of any sector of the music market. For example, users
can filter down into a range of criteria, including genre, location or performance and
gauge fan reaction on a specific social network” (Sawers, 2014).
If an A&R person wants to find out who the hottest (most talked about, up and coming)
artist is in a specific geographical music scene, they can now do so more efficiently,
using already collated and standardised data, to either start the hunt or further
strengthen their beliefs and initial findings.
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Providing a contrary view to the use of big data, Lowe takes the view that the Warner-
Shazam partnership will not provide WMG with a true advantage in terms of talent
discovery which the existing charts do not already provide.
Lowe will consider the artists in the last fifty tags of the Top 200 Shazam Charts to then
research their presence and reach, across DJs, blogs and social media. Radio plays by
specialist DJs as gatekeepers still remain crucial, as well as a network of trusted DJs
playing new music in selected clubs, where Lowe will look at which song is getting the
best crowd reaction.
In fact, Lowe feels that certain numbers are getting more inaccurate. For example, a
track on YouTube may have received a significant number of plays, but this may be due
to it being on a well-established music tastemaker YouTube channel with thousands of
subscribers and a history of videos with large play counts.
The numbers must of course be put in context of what else is going on in the market,
and whilst Lowe admits that there are some signings that the A&R team might not fully
like, but will sign because “it’s a massive club tune”, data will never fully dictate
decisions.
For example, in January 2014, a song called ‘#Selfie’ by The Chainsmokers was
released on Dim Mak Records and 604 Records. It peaked at number eleven on the
UK Official Singles Chart and is still in the Shazam Worldwide Top 200 Charts at
number sixty-three (as of 3rd June, 2014). The YouTube video to-date has had 129
million views, whilst the song has received over 7.7 million plays on SoundCloud after
being uploaded four months ago. With similarly impressive initial statistics, Ministry of
Sound noticed the opportunity and had the chance to sign the track, but never did,
based on the fact that the A&R team simply did not like the track.
Thus the subjective aspect of A&R, governed by gut feeling and experience will of
course remain: “It’s going to always be our gut first, once you get that information,” says
Liles [the co-founder of 300].
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“I would say 20% information, 80% what we do every single day. Because no piece of
technology could ever find it, nurture it, bring it to market [and] also know when to say
‘no’ ” (Greenburg, 2014).
Indeed it can be proposed that A&R before big data was already proficient at talent
discovery and development, and this poses the question of why big data is at all
required in this process, given that gut instinct plays such a significant role.
But the conversation around the use of big data should be less about tipping the scale
toward data and away from the gut, and more about using this data to make the twenty
per cent of information richer, which in turn can considerably help to make the other
eighty per cent of A&R more effective, efficient and sturdy.
Big Data: To Be Used Wisely In A World Governed By The Gut
A&R persons are expected to be knowledgeable about their chosen field or genre of
music, and notice and understand trends early in how particular genres or scenes are
evolving so that they may remain ahead of the change and capitalise on it.
Artists with a clear vision of their project as well as strong ideas of what they want to
create may not need support in developing their sound or overall package. Artists who
are also playing several live shows and are surrounded by peers may also have their
ears close enough to the group to pick up on the latest music trends and give it their
own, original interpretation.
Other artists however, may require or desire more help from the team around them,
including their A&R, to guide them in their creation, provide them with additional
knowledge of the marketplace in which they are positioned and direct them to influences
that is relevant to them and their audiences. Whilst sales figures are a good indication
of mainstream popularity, it does not necessarily shed light on what is rising up from the
underground music scene, where there is arguably a higher level of experimentation in
the creation of new sounds occurring for an audience which is more likely to include a
higher proportion of fans, aficionados, early adopters, gatekeepers and tastemakers.
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When it comes to the development of an artist within the context of the types of music
currently being enjoyed by relevant consumers, big data can also play a role in reading
these trends.
For example, Lowe spoke about a particular type of organ bass line sound originally
used heavily in drum ‘n’ bass and garage music, which is now being sampled in house
music, “on every record” that is doing well in music scenes of interest to Ministry of
Sound.
From a commercial stand point, for an artist positioned to be more under the broad
umbrella of pop music (which is inherently ‘of the moment’) that requires guidance, the
team around the artist may choose to highlight knowledge of particular sounds which
are proving to drive the popularity of songs, such as organ bass lines. A&R may well be
aware of these trends; Lowe himself certainly is.
Where data can benefit this knowledge is by providing reassurance that is more
scientific, deriving from the analysis of a much broader segment of the market, which
A&R may have missed.
By using services such as Shazam and Musicmetric, a more accurate reading can be
derived of the reception of these songs with a particular sound. It could be possible to
look at where the reception is higher with geotagging, how long the engagement with
these types of songs is lasting amongst key audiences, the sentiments attached to
these tracks, and whether it is indeed the sound which is playing a significant part in the
tracks’ successes, or whether there are other factors at play.
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Conclusion and Recommendations
The music industry is just beginning to get acquainted with big data, which can be
noticed through the recent deals such a those involving Shazam, Warner Music Group,
Twitter, 300, Billboard, The Echo Nest and Spotify. This shows the growing awareness
and desire for improving methods to harness and understand online data for
commercial purposes.
Whilst there is already work going on at major record labels at varying levels to
understand this data, their capabilities and resources toward data collection and
analysis remain limited. Moreover, as technology, crucially mobile technology continues
to advance, further integrating the smartphone into the daily lives of consumers as a
constant companion, the data within these applications, such as those held by Shazam
which are more unprompted and automatic - become incredibly valuable.
The other advantage of big data is that “being able to process every item of data in
reasonable time removes the troublesome need for sampling and promotes an
investigative approach to data, in contrast to the somewhat static nature of running
predetermined reports” (Dumbill, 2012).
In essence, big data opens up possibilities which would not have been noticed before,
helps to ask questions which would not have been asked before and speeds up the
discovery of solutions to existing questions. It provides a new perspective to talent
discovery and consumer understanding and it does so efficiently.
It would seem that two groups outside of the traditional music exchange market of
producer-consumer would have greater roles to play in the near future.
The first group comprises companies that provide a digitally based service that allows
the consumption, exchange and discussion of music-products in a way that reflects and
is in harmony with the way music is being consumed – automatic, weightless and
mobile. This group includes companies such as Spotify, Shazam, Twitter, Facebook,
and YouTube.
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The second group comprises those that have the expertise to capture, analyse and
successfully draw insights from the first group and deliver these to the music industry.
This group includes companies such as The Echo Nest, Musicmetric and The Next Big
Sound.
Record labels must also evolve and develop their data skillsets and technology
infrastructure in order to maximise the opportunities big data analysis can bring.
Polydor has already started to have Shazam-led A&R meetings and if big data is taken
seriously, it is not improbable to hypothesise that someday there will be a big data A&R
team sitting alongside the traditional A&R team, working together to find the next big
thing.
Similarly, although marketing and research has conventionally lent itself more toward
big data, the expansion will perhaps now be not only to understand consumer music
tastes and lifestyles better, but also to spot further commercial opportunities in the form
of providing consumers with new or improved modes of music consumption and
exchange.
Big data can provide a strong picture of the consumer and the product, however it will
not provide the full picture in a subjective industry such as music. It has the power to
more efficiently and effectively help record labels in spotting trends and understanding
what, how, where and when the changes are happening.
However, data is limited in being able to offer a holistic answer into why something is
popular. It may not be able to predict the next Sex Pistols or Adele, but it can help A&R
scouts and marketers notice trends earlier than others, giving them a commercial
advantage over competitors.
The ultimate and sustained success of songs arguably still depends on how well the
song connects with its target audience at a specific period and how relevant a song or
artist is to the environment it is brought into.
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“Commercial success relies significantly on consumers’ extractions of cultural meanings
from musical offerings, and those meanings of music are shaped and constrained by
the conditions… of its production and consumption. Music is a vehicle for cultural
meaning” (O’Reilly, Larsen, Kubacki, 2013).
Since music is subjective, symbolic and social, in order to extract the most value out of
the data, it is worthwhile augmenting big data analysis with an awareness of cultural
trends and semiotics (i.e. the study of meaning-making), in order to put big data into
context and gain a fuller picture.
Ideally marketers and A&R departments should be, as Fryer suggests, “digesting
criticism every day, whether that’s Marx or Alexis Petridis” (Fryer, 2014).
This will feed into the understanding of the environment of consumers and producers,
which then helps to make better sense of their music preferences, or indeed, how their
music preference may evolve in the future.
This is easier said than done, of course, and injecting cultural theory and knowledge
into music beyond what is picked up via personal interests becomes difficult.
Currently, the core research department for the whole of Universal Music Group in the
UK officially consists of a handful of people. It is perhaps time to expand, both in terms
of big data and equally, research and insights.
Given the depth of discussion that it possible around big data, and the equally if not
larger discussion around semiotics and cultural theory, it has not been possible to look
deeper into the connection between big data and cultural theory. This would be an
interesting topic to explore.
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Further, this thesis focused primarily on the largest major record label in the UK and
was supplemented with information from an independent label that behaves like a
major, due to limits in scope, time and size of thesis.
The discussion could benefit from the inclusion of all major labels and more
independents, as well as how big data may be of benefit to other players in the industry,
for example, publishers, managers, booking agents, promoters, and in fact the artist and
consumer themselves.
This thesis has also carried out and proposed some rudimentary analysis of Shazam
data, as the focus of this paper was to suggest rather than execute the analysis of big
data itself. This could be taken much further with statistical analysis similar to some of
the methods stated in the thesis and applied to data sets such as Shazam.
Music is yet to Moneyball, but it is less a tipping point and more a continuous process.
For this to happen, there needs to be an evolution in the way talent discovery and
consumer understanding is approached and thought about.
Big data is here to stay and other industries are benefitting from it already.
Now it’s the music industry’s turn…
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