DATA IN the

STREAMING MUSIC INDUSTRY

LEGARFFFrédéricBOUNLéa

JOLYAugustinSOUFFEZMaxence

LYKJordanDAVOISEFlorian

DATABASE FOR DIRECT MARKETING & E-CRM

MUSICAL INDUSTRY DECLINE ? INTERNET IS TO BLAME ?

INTRODUCTION

What the« MusicalIndustry »is ? Internethasmodified themusicalconsumtionmodes

Utilisationofdata

HOW DATA ARE USED IN THE MUSICAL STREAMING INDUSTRY ?

1 2

Data in the streaming music industry

I. MARKET ANALYSIS

a. Keydatesb. GeneralMarketc. Mainactors

II. DATAS IN THE STREAMING MUSIC INDUSTRY

a. Consumer/Brandsneedsb. Technicalanalysisc. Newservices

III. NEW TENDENCIES

a. MusicalMapb. Emergingactorsc. Emotionalstreamingd. VirtualReality

KEY DATESMARKET ANALYSIS

1993:Thesevere TireDamageandtheRollingstones

1995:Creation ofRealAudio compressionsystem

2001:Launched ofRhapsody

2003:Creation ofMyspace

2005:Creation ofYoutube

2006:Creation ofDeezer

2007:Creation ofSoundcloud

2008:Creation ofSpotify

2014: Thetotalmusicalmarket valueis 14,965billions$

MusicIncomes repartition recorded in2014(sourceIFPI)

Numerical

Physical

Derivative rights

MARKET ANALYSIS GENERAL MARKET

Which means 6.85billions$digitalmusicrevenuein2014

Within this (sourceIFPI):- Downloading(52%)- Mobile(3%)- Others (12%)- Streaming(33%) 2,26billions$

1,6billions$camesdirectly from subscritions

MARKET ANALYSIS GENERAL MARKET

• Suscribing tostreamingserviceswas in2014themost increasing sourceofincomes.(+39%between 2014&2015)

• In5years these hasbeenmultiply by6

• Thisconstantevolution lead,forthemusicalstreaming,torepresent 23%oftheworldwidenumerical revenuin2014

• Oneofthemost importantfactorwas theassociationwith thetelecom operators

MARKET ANALYSIS GENERAL MARKET

48%onPC 42%onsmartphones 10%ontablets

• Spotify,Souncloud anddeezerarethethree bigest actors ofthis industry

• Spotify owned half ofthemarket in2014.

MARKET ANALYSIS MAIN ACTORS

Data in the streaming music industry

a. CONSUMER / Brand NEEDS

b. Technical analysis

c. NEW SERVICES

CREATEPLAYLISTS

CONSUMERNEEDSTENDTOEVOLVE

PRIMARY NEEDS

CONSUMER NEEDS

LISTENMUSIC SHAREMUSIC

EVERYSOUNDSLISTENED

EVERYPLAYLISTSCREATED

PEOPLEYOUFOLLOW

ALLTHEMUSICYOUSHARE

USERS GENERATE MANY TERABYTES OF DATA EVERY DAY :

RESEARCH,DISCOVER,BROWSE

CONSUMER NEEDS

• Specialistindataanalysisformusicindustry :produceafullportraitofconsumersregardingpersonalityandtastes

COLLECT DATA FROM MUSICAL PLATFORMS AND SOCIAL MEDIA :

• TrendsonSocialMedias:provide fullandpreciseanalysis

• Variouscriterias :musicalstyle,popularity ofanartist,placeswhereartistshavebeenproduced

EXEMPLES OF POWERFULL ALGORITHMS

CONSUMER NEEDS

GOALS :

DEFINE CONSUMER PERSONALITY AND TASTESEVALUATE RECIPTIVITY TO THE TRENDS

PREDICT ACTIONS AND RECOMEND CUSTOMIZE CONTENTS

STREAMING INDUSTRY NOW USE TO INTERNALIZE DATAS COLLECTING AND ANALIZING

BRANDS NEEDS

GOALS :

UNDERSTAND CONSUMER BEHAVIOURACCURATE TARGETING

RECOMEND CUSTOMIZE ADVERTISMENTS

STREAMING INDUSTRY IS USING DATA TO SELL MARKETING PLANS TO BRANDS

CLOUDSTORAGE

DATAMINING:REALTIMEANALYTICS

BRANDS CONSUMERS

PREDICT TARGET ADVERTISE

DATASWAY-INDATASWAY-OUT

RESEARCH BROWSEDISCOVER

PROVIDEMUSICTOEVERYONE

P2PMusicStorageServers

STREAMING SERVICES

DatasStorageServers

Musicdiscovery&Personalization

Recommendations, Tops,Adtargeting,Labelreporting

SQL,Machinelearning,Graphprocessing, Livedatastreams

HDFS&MapReduce :Analytics, recommendations

CLOUD STORAGE AT SPOTIFY:

P2PMusicStorageServers

DataStorageServers CLOUDSTORAGE

2011:80%throughP2Pnetwork

AmazonWebService:- Storageofmusicfiles- Provide streamingtousers

GoogleCloudPlatform:- Datacollect- Datastorage- DatastreamanalyseswithBigquery :

algorythm andpredictiveanalyses

Cache

DATA MINING AT SPOTIFY:

DATAMINING:REALTIMEANALYTICS

Musicdiscovery&Personalization

Recommendations, Tops,Adtargeting,Labelreporting

SQL,Machinelearning,Graphprocessing, Livedatastreams

HDFS&MapReduce :Analytics, recommendations

600GigabyteUserscreate600Gigabyteofdataperday

4TerabyteEveryday4TerabyteofdataisgeneratedinHadoop

700nodes700nodeclusterrunningover2000jobsperday

28Petabytes28Petabytes ofstorage,spreadoutover4datacenters across theworld.

KEY NUMBERS AT SPOTIFY:

DATA MINING AT SPOTIFY:

• ThissolutionoffersasetofAPIsbasedonrichmetadatatoprovideuserswithpersonalized recommendationsofsongs,butalsoasegmentedaudiences,usefultotargetadvertisingbasedonthetypeofmusiclistened

• Highdata-mining,combining bothhumanandartificialintelligence,whichallowstheapplicationofperfectlymatchingoffercontenttothetargetprofile

THE ECHONEST : POWERFUL RECOMMENDATION ENGINE

• Convertsongsintodifferent shapes,accordingtocommonmoodsthatemerge

• Tracksaresortedbycolor• Shapes&colors aremixed:Now,eachpiecehasauniquevisual

signature

MODULATETHESHAPEOFYOURPLAYLIST

CLOUDSTORAGE

DATAMINING:REALTIMEANALYTICS

BRANDS CONSUMERS

PREDICT TARGET ADVERTISE

DATASWAY-INDATASWAY-OUT

RESEARCH BROWSEDISCOVER

PROVIDEMUSICTOEVERYONE

P2PMusicStorageServers

STREAMING SERVICES

DatasStorageServers

Musicdiscovery&Personalization

Recommendations, Tops,Adtargeting,Labelreporting

SQL,Machinelearning,Graphprocessing, Livedatastreams

HDFS&MapReduce :Analytics, recommendations

NEW SERVICES CONSUMERS

GET FEEDBACK ON HOW WELL SERVICES ARE EFFICENT TO IMPROVE THE USER EXPERIENCE

RESEARCH, DISCOVER, BROWSE

Creatingtoplists ofwhatisthemostpopularmusicrightnow

Poweringourintelligentradioanddiscoveryfeatures:GetcustomizerecommendationsGetmoods&genderplaylist

Socialexperience:brandcommunities

Alldesktop:computer,mobile,tablet,car,TV,etc.

NEW SERVICES Brands

Reporting to:- Recordlabels- Rights holders

à Make sureeveryone gets paid

à Predictions

• Moods&gender theylike• Whatkindofmusictheylike• Wheretheyare• Whentheylistenmusic• Whotheyare(demographicdatas)• Multi-plateformes (mobileanddesktop)

• Customizesessions• Midroll Videofordesktop• Audiospots• Customizedisplay• Customizeplaylists• Advertiserpage

TARGETING SOLUTIONS ADVERTISMENT SOLUTIONS

NEW TENDENCIES MUSICAL MAP

GEOLOCALISATION

Create aMusicalMap :different typesofmusic&artists depends ofyour localisation

MAKE CONSUMERS TRAVEL WITH MUSIC

• Founded in2013

• Musicsearch andrecommendation engines

• AccessiblebyApplicationProgramming Interface(API)

• Deliver better UX

• ManageMusicIndexationandrecommendation

• Improve easily datamanagement

• Founded in2013

• Saas(SoftwareAsAService)

• Musicrecognitionsolutions formediamonitoringcompanies

• Broadcastmonitoring servicesforrightsmanagementcompanies &PROs

• Copyrightdetection systems forUGCplatforms

• Livemusicidentification,musicdiscovery &purchase solutions forBtoCservices

NEW TENDENCIES EMERGING ACTORS

NEW TENDENCIES EMOTIONNAL STREAMING USER EXPERIENCE

Brainstorming

Creation ofsongs with professionals

Playlistavailable forjoggers

Newway oflistenning tomusicwhile running

Extend thecustomer relationship /Userexperience

Bring morefidelity from customers

Follow theglobalstrategy ofthebrand

Brainstorming

Newway tolisten musicon their platform forusers

Opt-infeature that matchesmusicbeatwithrunning tempo

Useasmartphone sensors todetect steps andfindsimilar tracks

Enhance theUserexperience

Targetjoggersascustomers

• Partnership focusarroundvirtual reality• Connect artists,musicfans&brandsandsponsors• « Homeconcerts »• Represent abig changefortheindustry

NEW TENDENCIES AUGMENTED & VIRTUAL REALITY

UBIQUITY•Dataareavailable anytime when ever,andcan

be stored atany place.Cloudcomputingpermits applicationstobe available

everywhere,anytime andforeverybody.

OMNISCIENT•Dataareeasily tracable.Big serversallowsorganizedstorage ofdata.Itpermits toanalyze

thepast andtopredict thefuture.

PROPINQUITY•Datacan be taken from alldevices andchannel.

Italso permits totarget,segmentandadaptcontent/strategies

CELERITY•Newtechnologies asGrid orCloud compunting

enable higherandhigher computing speed.Dataarethen transmitted faster andfaster.

ENTROPY• Interactionwithin allthesourcesofdataanddatamining allow companies toenhance the

communication, provide feedbacksanddiscover newchannels.

CONCLUSION

THE SEMANTIC WEB

THANKS FORWATCHING