Music Industry's Data Chaos: Billions Lost in Royalty Black Hole
The music industry faces a critical challenge in managing its data, with outdated infrastructure struggling to handle the billions of micro-transactions in the streaming era. Lack of standardised data formats and data silos are leading to inaccuracies in royalty tracking, missed opportunities, and significant financial losses.
The problem is not merely about collecting more data, but about intelligent data governance and building trust in data. Industry-wide collaborative bodies, data standardization initiatives, and technology companies specializing in data integration and AI-driven solutions are working together to address these issues. They aim to ensure cross-system data accessibility and improved knowledge management across departments.
Jacob Varghese, CEO & founder of music rights platform Noctil, has highlighted the urgent need to tackle these data challenges. Data fragmentation impacts operational efficiency, requiring time-consuming and error-prone manual processes. Inaccuracies in metadata can lead to delayed or unclaimed royalties, contributing to the 'black box' of unallocated funds. The music industry's complex and fragmented data structure leads to significant hidden costs and inefficiencies, with the industry losing millions, if not billions, in royalties annually.
To enable fairer payments, faster workflows, and a connected global rights ecosystem, the music industry must modernise its data infrastructure. This will require collective effort from various stakeholders, including music rights organizations, data standardization initiatives, and technology companies. By addressing these challenges, the industry can unlock the full potential of its data, improve royalty tracking, and ensure that creators are fairly compensated for their work.
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