Bands really are businesses now and they need to start acting like it, Spotify’s director of economics said.
There’s such a huge amount of data available to bands now that they can, in theory, start to hack their way to growth or the elusive big break.
Spotify’s economics boss Will Page told Business Insider the company measures age, gender and geography of all people streaming, which means artists can make critical business decisions on touring, marketing spend or what type of songs to create based on sound information.
The bottom line is analytics can help bands, managers and labels be more profitable. A nice counter argument to the haters who claim Spotify is ripping off artists when it comes to royalties.
For example, in Australia three-quarters of users are under 34 and one in six have tried the service.
With growing market share around the world, Spotify is able to garner some big insights into the music habits of different populations and allows “targeting to a ridiculous scale”.
“Many European countries last year reported growth [in their music sector],” he said, adding the data also showed 80% of Australian artist Flume’s steams were coming from outside of Australia.
Knowing information like that can almost ensure sold out concerts and fan-base growth with targeted tours and marketing efforts.
“You’re seeing the value of the data,” Page said, adding “There will always be hits in the past, there will always be hits in the future…data allows you to track.”