The economist recently reported that the music industry has started using some concepts of data analysis to better understand their customers. A couple of my favorite lines include:
Every time a track is uploaded to or played on YouTube, every time it is sold by iTunes, streamed on Spotify, shared on a pirate network, liked on Facebook or tweeted about, it gives off a digital signal. A cottage industry has sprung up to process these signals and feed the results to the record companies.
“We’re no longer just a wholesaler of music,” says Paul Smernicki of Universal. As their traditional business declines, the music companies are moving into live music and merchandise. To succeed in those markets, they will need to become experts in fan behaviour, understanding not just how and why people buy music but how they weave it into their lives. In that, data will be crucial.
