Master monetization with multi-platform music performance analytics

Remember when tracking music revenue was straightforward? Those days are long gone. Today’s music assets generate revenue across an average of 14 distinct platforms and formats, often exceeding 20 when counting emerging channels. This fragmentation creates both unprecedented challenges and opportunities for rights holders.

The digital revolution that promised to simplify music distribution created a labyrinthine ecosystem requiring sophisticated tracking and analysis capabilities. Beyond the obvious streaming giants, revenue now flows through:

• Subscription streaming services
• Ad-supported platforms
• Gaming and social media platforms
• Fitness applications
• Short-form video apps
• Radio/TV

5 biggest blind spots

According to the Journal of the Music & Entertainment Industry Educators Association, approximately 20-25% of potential royalties go uncollected due to inadequate monitoring systems. Most music executives remain unaware of critical vulnerabilities in their analytics and royalty processing due to these 5 blind spots:

1. Data silos
   Separate departments maintain isolated systems, preventing holistic analysis.

2. Catalog neglect
   Analytics focus on new releases while overlooking optimization for catalog material.

3. Platform specialization
   What works on one platform may fail on another, yet most companies apply uniform strategies across platforms.

4. Royalty leakage
   Without automation, complex payment structures create "leakage points" where rightful payments disappear.

5. Metadata mess
   Poor platform management leads to unlinked assets and unclaimed revenue.

A revenue-first platform strategy

In my opinion, it’s best to gauge the effectiveness of any prospective platform by what a company wishes to accomplish in terms of prospective revenue. This can also be gleaned from media in the music industry, such as Billboard and Music Business Worldwide. For example, if a company wishes to expand its artists’ footprint in the Japanese music market, researching what platforms the audience engages with would be helpful. From my experience traveling recently to Tokyo, I noticed commuters heavily used Spotify to play music on their mobile devices.

Cross-platform correlation analysis has revealed unexpected relationships between different platforms’ performance metrics and how companies translated these insights into actionable strategies. It’s essential to pay attention to when a particular platform is pulling ahead and what its industry differentiators might be that allow it to take a lead in its market. When Spotify created the bundling model, this opened up a new means of prospective revenue, where they could include audiobooks and podcasts. An actionable strategy for a competitor might be creating a bundling model to drive revenue.

3 actions to implement now

I believe the best course of action is to adopt an integration-first approach that merges rights management, performance analytics and royalty processing into cohesive systems.

1. Conduct a platform coverage audit
   Comprehensive tracking can result in a marked increase in identified revenue opportunities.
   
   
2. Implement cross-platform correlation analysis
   Understanding how content performs across different platforms enables targeted optimization that increases overall performance.
3. Automate royalty validation and distribution
   Replace manual processes with end-to-end automation to validate incoming revenues against expected payments. This significantly reduces administrative costs while accelerating payments.

Transparency: The ultimate relationship currency

The benefit of providing analytics to artists and songwriters is that all the data processed by a label or a publisher becomes visual. A simple pie chart or bar graph can show which songs an artist sells the most or which countries listen to the artist the most. This reduces concerns and issues with the artist, providing a greater relationship.

Data drives dollars

Embracing data-driven solutions offers numerous benefits, including:

• Enhanced decision-making
  Access to comprehensive analytics enables more informed strategic decisions.

• Increased revenue
  Identifying and capitalizing on additional monetization opportunities boosts income.

• Improved relationships
  Timely and accurate payments foster trust among artists and rights holders.

Evolution, not revolution

Transitioning from any old approach to a new one requires time and understanding that adjustments may be needed. Training and implementing the new system is best if a company can start a new methodology from scratch. Suppose a data legacy must be migrated/administered, although it may pose an extra workload upon an organization. In that case, I believe it’s best to continue with an old method while transitioning to the new one. Of course, this will add to the timeline for fully implementing the new system, so it should be factored into any project.

Data goldmine or money pit?

The fragmentation crisis represents the most significant challenge — and opportunity — facing the music industry today. Rights holders who implement comprehensive analytics and royalty automation capture significantly more value while reducing operational burdens.

Suppose you continue viewing these functions as cost centers rather than value drivers. In that case, you’ll increasingly struggle to compete in a market where data-driven decision-making is the entry price.