Polyphonic can easily exploit its management structure to build business relationships with A&R executives. Apart from that, this market segment will be beneficial to Polyphonic not only because recording companies hold a number of established and budding producers and artists at the same time but also because they can name their price at a more profitable rate unlike with the other two segments of which they would have to rethink the respective purchasing powers.
Recording companies may spend about $5,000 or more for a conservative market research for one song alone and a rough estimate of about $400 million in promoting an album (based on the 2002 case study). A newly-released audio CD is now priced around $14 - $17. HSS could significantly scrap most of the market research costs used in a song production.
In pricing one song analysis, the costs of the labor, time off, promotion, administration, and training (when appropriate) are the basic accounts in pricing such a professional service. For recording companies, a 15 to 20 percent mark-up could support the overall fixed and variable costs; for producers, 10 to 15 percent; and for unsigned artists, 5 percent.
Hit Song Science analyses have 80% accuracy. If it continues to predict at the highest precision for music solutions, a newly-released album with hit songs may amass more or less than $3 million in sales in a matter of weeks alone.
Piracy persistently rummages the music industry today. Everything seems to work in a compressed, economic structure. Production costs are increasing while profitability remains low. HSS will economize production and placement and increase profitability consequently. Artists, producers, and recording companies rely on their gut feeling in picking what song could further promote the album. Looking at the lighter scope, HSS could only validate and enhance that skill.
HSS defeats the purpose of making