The music industry is constantly evolving, and record labels are always looking for new ways to stay ahead of the curve. TMV has covered the recent trend at record labels to hire data scientists to interpret the mountains of data they collect from a multitude of different sources in order to gain a marketing advantage over competitors. This data can then be used to identify potential new artists, predict which songs are likely to be successful, and target marketing campaigns to specific audiences.
One promising new technology that is gaining traction in the music industry is digital twin technology. A relatively new AI-based technology, digital twins have only been around for a few short years but development was expedited as a result of the COVID-19 pandemic. Today the global digital twin market size is projected to reach USD 155.83 billion by 2030
Digital twin technology is a way of creating virtual models or representations of physical objects, systems, or processes that can be used to simulate their behavior and improve their performance. The technology can be applied to many different domains, but in the context of the music industry, digital twins could be used to create virtual replicas of artists, audiences, distribution partners, and digital distribution channels. These digital twins would incorporate explicit characteristics, such as age and language, as well as implicit attributes, such as behavioral traits, loyalty, and human sentiments and affinities.
Digital twins would be launched in a virtual environment that takes into account external factors, such as environmental influences (e.g., COVID-19) and technological advancements (e.g., the Metaverse). This environment would then be used as a virtual playground to experiment with various business decisions and predict and influence how the twinned entities of interest would respond.
For example, a record label could use digital twin technology to simulate the launch of a new artist or the impact of a change in budget across promotion channels. This would allow the record label to minimize ambiguity and risk, and to make better decisions about how to allocate resources.
‘What-if’ simulation outcomes reflect the impact of business ideas on key performance indicators (KPIs) such as cost-per-listener, social buzz, and revenues at various points in the planning process. Such insights determine the label and the artist’s exact path to future success. Conversely, KPIs can be calibrated on the simulation console to receive recommendations on the best route to achieve specific goals with’ If-what’ simulations. These recommendations can be further compared and ranked based on relevant KPIs.
In addition to helping record labels make better decisions, digital twin technology can also be used to improve relationships with partners, such as publishers, distributors, and event planners. By understanding the needs and preferences of these partners, record labels can create more effective partnerships that benefit everyone involved.
As record labels continue to embrace digital twin technology, one wonders if they will eventually become so obsessed with it that they will forget what it means to be human. After all, if you can simulate everything about an artist, from their musical taste to their marketing potential, what’s the point of even having them? Perhaps in the future, record labels will simply create digital twins of their artists and release their music directly to the public. That way, they can avoid all the pesky human emotions and interactions that make the music industry so unpredictable. But then again, what would be the fun in that?
