Know Your True Fans: The Echo Nest’s Advice
Creating a profitable way to sell music on the internet is hard for both the distributors and musicians. Somewhere down the line, there are losses to be had and profits to be made – but we know for a fact listeners aren’t going to pay a higher price when they can get the same service somewhere else. Pandora and others offer a tier of their service, where they pay basically nothing in order to listen to music, the only catch is that they are forced to listen to advertisements abruptly without any warning. One might expect that the free service would be pretty popular, but the results have shown the opposite. Once a person pays for a subscription service – they are less willing to go back to a service that uses ads.
Besides the business and cultural end of these services, what good is it if analytics aren’t being used to determine how well a service actually works? This is the principal that “The Echo Nest” is working on. Their job is to figure out the relevance of a particular service, not only to see if it is profitable, but to see where it can be improved and adjusted. They say that their service will benefit both artists and distributors.