Data From Music Streamers Saved Label $1 Million This Year, Says Big Machine’s Scott Borchetta
Like it or not, data drives the music industry. That's particularly true of labels that compete for commercial radio play. Data, including expensive focus groups, drives what and how they pitch, and streaming data has rapidly become an essential and free source.
“We can’t get enough data,” said Big Machine Label Group chief Scott Borchetta, responding to a question at RAIN Summit Nashville this week. Data driven decision making is key to any music exec trying to target resources; and Borchetta says that Spotify, Pandora and other music streamers have become a very valuable source.
Even a triple platinum record represents just 1% market buy-in, according to the exec, and good data can provide guidance that broadens that slim margin. Streaming music services provide some of the best data available and at no cost, says Borchetta, who added that they've saved Big Machine $1 million this year by identifying artists and tracks that underperform.
Borchetta's advice to radio broadcasters: "This is a critical moment. If listeners leave radio, they won’t come back.”