Big data has brought major changes to countless industries. Healthcare, finance, criminal justice, and manufacturing have all been touched by advances in big data. However, big data is also transforming other industries. The music industry is relying more on big data than ever.
Darren Heitner wrote a great article on Inc. About the way that big data is revolutionizing the industry. This is a great opportunity for smaller studios and artists to get their name out. Ankit Desai, the founder of Snafu Records, was a head data analyst for a major Swedish university before entering the music industry. Desai said that big data is going to play a much bigger role in the industry in the years to come.
Big Data is the Key to Success for Newer Firms
The music industry isn’t for the faint-hearted whether you want to break in as a musical artist or an entrepreneur. It is going to require a major investment of time and resources. The good news is that big data can help entrepreneurs in the music industry thrive.
Big data is having a number of impacts on the industry. One of the biggest ways that it is disrupting the industry is by creating new engagement strategies and optimizing relationships. Spotify developed a new tool last year called Publishing Analytics that helps music companies get the most value of their data.
There is a good reason for this. The music business is both a competitive and vibrant industry which requires a mixture of talent, luck, and smart work to do well in. If you happen to be one of the many who wants to break into the business side of the industry, then you should know it is possible to do well in that sector despite the foreseeable challenges. However, you will have a hard time getting by without a sound big data strategy in 2019.
There are plenty of tips that will help you succeed in the music industry. Here are some ways big data can help.
1. Choosing a niche with big data and predictive analytics
If you want to do well in the music industry, it’s crucial that you choose the right niche. If not, you may find that you’re trying to break into an already saturated area of the market and achieve little success. To successfully find your niche, do market research.
This is the biggest way that big data can help. You can use big data and predictive analytics to gauge trends in the music industry and see what will be popular in the future.
You can explore possible business ideas based on both your area of interest and the potential demand for your product or service. Once you do this, you should research your competitors and see what they have been doing right and wrong. This will give you insight into whether you have enough of a competitive advantage to break into that niche area. You could decide to start a song licensing business, be an event planner, record label owner or mobile app developer.
2. Use big data to identify the best networking circles
The people that you choose to associate with will determine what opportunities you expose yourself to as an aspiring entrepreneur. Get around people who are already in the industry and have made significant progress. By doing so, you can learn from people who have made mistakes and learned the ins and outs of the music industry.
In case you’re wondering how you can meet such people; it would be by networking. Attend business networking events and be sure to go prepared by doing industry research. You will also find that networking can improve your business’ net worth by giving you better business opportunities, improved social status, and the right knowledge. On that note, ensure it’s something that you take seriously.
How can big data help with this? Big data makes it easier to find the networking venues that give the most reach with your target demographic.
3. Insure your business
If you want to become successful in the music industry, it’s essential that you insure your business. This is especially key as you can’t predict whether you’ll have claims for personal injury or property damage at any point of running your business, especially if you have a brick and mortar premise.
Not having insurance could mean that your business is financially crippled as a result of such claims. Hiscox offers public liability insurance that will cover your business in case of unforeseen circumstances.
Big data can help you assess actuarial algorithms and see what the risks are of certain issues. This can help you see if you are going to get the best rates.
4. Get industry knowledge
Understanding how the music industry works will take you steps closer to excelling. In terms, of how you can gain industry knowledge, ask questions, use online resources and consider higher education courses. However, nothing beats first-hand knowledge which could be acquired through work experience or an internship. Getting a knowledgeable business mentor could also put your miles ahead and help you set off in the right direction.
Big Data is Key to Thriving in the Music Industry
The music industry is undergoing a number of changes, which are largely driven by big data. You can use data to gain an edge and stand a chance at competing in this cutthroat industry.