Don’t Fight File Sharing, Use It

Now here’s a novel idea. It seems at least one record company is using peer-to-peer download data for market research.

Interscope Records is using file sharing data from a company called MediaDefender, which bills itself as “the leading provider of anti-piracy solutions in the emerging Internet-Piracy-Prevention (IPP) industry.” MediaDefender makes its money by seeding file sharing networks with bogus files, allowing content providers to serve users ads instead of the files users request, and in general try to screw up the peer-to-peer experience. Not that it’s working.

In addition, they are apparently supplying traffic data to record companies like Interscope to help them choose which single to release next. Presumably, a song that is downloaded often on file sharing networks but has yet to be released as a single is a good target for promotion. It’s like record companies have a little test market running online, which they can learn from before they spend money on advertising in the real market.

Good for Interscope! The data that can be derived from peer-to-peer traffic is indeed a marketing gold mine, and can be used to find out all sorts of things beyond the next single candidate. Here are a couple other ways this data could be used by record or movie companies:

1. File sharing data could be used to discover new or under-promoted artists. Record companies would do well to take note of any spikes in traffic for a particular artist or song. I would assume that often, the trends that take shape on the Internet happen well in advance of a more public outbreak. Tracking and jumping on nascent file sharing phenomenons could help record companies get a jump on the next breakout artist or viral song, or find new interest in forgotten artists that could use a little re-promotion.
2. If the peer-to-peer marketplace is indeed more fast moving than the offline marketplace, file sharing data can be used to deduce when a trend is starting to fade. As file sharing traffic drops off, record and movie companies could reign in their marketing dollars to avoid spending extra money on a falling fad.
3. File sharing networks can allow record companies and artists to interact with their fans. For example, an artist could seed three different mixes of the same song out to the masses. Users would vote by sharing the version they like best with others, and the version that got the most votes would clearly be the most popular, and by extrapolation, the most successful.
4. Peer-to-peer data encompasses more than just numbers. By looking at the locations of users who download specific artists or movies, record companies could target their promotions to certain geographical markets, movie studios would know what cities to release certain films in, and artists could figure out where to play when they go out on tour.

The possibilities are literally endless. The data that can be gathered from peer-to-peer networks is the stuff marketing managers would kill for. Most importantly, if record companies pick up on the value of file sharing networks they might actually start treating file sharers like customers and not criminals.

It’s simple really. People who use file sharing networks care about music and movies. They are up on culture and they are often the trendsetters in their social circles. These are the kind of people record and movie companies need to learn from, not prosecute. Once these corporations realize the valuable market research that is at their disposal, maybe they will give up their draconian lawsuits and go back to the business of making good music and quality films.

WHAT'S NEXT?

Subscribe via RSS or Email  ::     ::  Leave a comment

Bookmark to: