From creation and discovery, to distribution and monetization, data now permeates every aspect of the music business.

But is that data actually accessible, meaningful, and useful? In a noisy market, what does modern “data strategy” look like for today’s artists and industry professionals — and where do they most need help?

To find out, we ran one of the largest, most comprehensive surveys in history on how the music industry collects, manages, and leverages data. In total, we received responses from 600 professionals across 6 continents and 12+ industry sectors, including record labels, music publishing, artist management, live events, academia, and more.

What we found is a landscape marked by paradox:

1. Music professionals are awash in data, yet in many cases starving for actionable insights.

Music data is abundant and diverse. Our respondents use an average of 3 different types of tools in their data operations — ranging from first-party streaming and distributor dashboards, to third-party market intelligence platforms, fan CRM tools, and in-house solutions.

But despite data's ubiquity, the music data that people actually want is still fragmented and expensive. In an organizational context, music data is often siloed, with only a few employees in key positions having access to data tools — even for in-house solutions. Cost is also a major obstacle, especially for smaller teams with limited budgets.

2. Companies across the board are increasing their data investments, while struggling to quantify their returns.

There was a pervasive feeling among our respondents of a "data arms race," with 59% of respondents expecting their company to increase data budgets.

Yet, over 40% of respondents are unsure about or unable to assess the ROI from their company's current data strategy. There is a lot of data acquisition happening without the proper contextualization — namely, understanding how the data being acquired fits into a company’s broader strategy to drive tangible, sustainable business outcomes.

3. Addressing fundamental data challenges appears more urgent than investing in cutting-edge technologies.

Adoption of emerging tech solutions for music data remains limited. 40% of respondents use AI in their data operations, facing challenges including lack of expertise, high costs, and ethical concerns. Web3 adoption has decreased significantly, from 24% of respondents in 2023 to just 14% in 2024.

Meanwhile, notable gaps in data literacy and tooling persist across the industry. Only a third of respondents say their company offers data literacy training, and many still rely on basic tools like email and manual spreadsheets for fan data management. General-purpose CRM solutions are more prevalent than music-specific ones, indicating a lack of tools tailored for the industry's unique needs. There's a clear opportunity for music companies to strengthen their core data foundations, providing a better base for future technological advancements.

Through this report, we aim not just to present statistics, but to spark conversations and provide a blueprint for action in a fast-moving landscape.

In particular, our findings challenge the notion that more data automatically leads to better decisions. As the music industry moves forward, we believe its focus should shift from merely acquiring more data, to asking better questions of existing data — and investing in tools and skills that can translate information into tangible value for artists, fans, and the industry at large.

We invite you to use this report as a catalyst for transforming how you approach data in your own work and organizations. Together, we can leverage the power of data to build a more transparent, equitable, and innovative future for the music industry.

Thank you for reading!

Cherie Hu
Founder, Water & Music