The music industry has evolved so much throughout generations, from the way music is consumed to the way it is analyzed. Not more than 15 years ago the only way for an artist to be discovered was to catch the attention of an A&R representative at a venue or by getting their mixtape listened heard. Now an artist is able to get discovered via social media platforms from anywhere in the world. These platforms have become the center stage for these artists to showcase their talent. Due to the evolution of music turning digital, has come the change in how music data is analyzed. Data analytics plays a crucial role in the music industry.
Major labels very much depend on social media as a deciding factor when shopping for an artist. If an artist has a big organic social media following that is a good sign that an artist is going to be successful. This doesn’t, however, happen overnight. These artists are studied over a period of time by the Business Intelligence team to see if they actually maintain the following and that it’s not just a quick fad. In addition, major labels track the social media of their existing artists to see where, when, why and what is causing them to trend or not to trend in the market. One way a label is able to gauge their artists is by creating a challenge on a social media that pairs with a song. For example, Nicky Jam and Daddy Yankee’s recent song “Muevelo” has a dance challenge where all their followers are welcome to engage in submitting a video of themselves dancing and adding a hashtag name, #muevelochallenge on Instagram; this is a way that a label creates movement and this movement can be analyzed and provide them with much-needed information on how to market and brand their artist. Finally, the same goes for music streaming platforms. Labels are able to analyze music streaming platforms, such as Apple Music, Spotify or Deezer to name a few to see where they want to continue to invest their marketing dollars.
Overall, data analytics plays an important role in the music industry, as it provides numeral facts as to the success of the artist overall and this, in the long run, generates revenue, saves revenue and creates new opportunities for the artist and label alike.