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The Problem With Big Data

I know how many steps I take per day. But these get recorded on a pedometer, not an Internet connected device with algorithms on the back end. As a result, I don’t get push messages telling me how close or behind I am to reaching my goals. I just know some basics.

I love data. It allows us to make wise decisions about where, when, and how to move forward.

But I still believe data is really bad at predicting human emotion. Music, for example, is hard to recommend. There are special algorithms in Pandora that suggest new tracks in accordance to our tastes.

Based on my own experience, rarely does Pandora play something interesting and of good quality. Music, like books and movies, is not something you can predict with precision. Human Genome projects are great for recommendations and starting points but they try to plan too much. And it’s because we let them to, outsourcing responsibility.

The best part about the analog world is discovering something that aggregated data can’t predict. Discovery occurs through randomness as much as it does through suggested data. The data doesn’t know you’re open to completely new things; it’s going to keep feeding you the same stuff within that niche.

Machines that dictate our action dictate our behavior. Plugging out, being open, is just as important as being plugged in. The best recommendation engine may be yourself.

It was only a matter of time before Apple got into the music streaming business.

Apple is still the predominant music store for downloads. It owns the most popular devices in the iPhone, iPad, and iPod and has built close relationships with the labels.

It makes sense for iTunes to turn the industry on its head again. I don’t think we’ll see traditional web radio at play like Pandora but a more mixed streaming model like Spotify with an ad supported radio option.

Apple will use its power to establish a blanket license for streaming music. It can use some of its $100 Billion to subsidize content at break even so it can sell even more devices.

It’ll be interesting to how Apple plans to socialize the platform since Ping was a failure. It has a much more amicable relationship with Facebook now that Facebook is native to iOS 6. Similarly, Apple could expand upon its close Twitter relationship with some type of emdeddable music tweets.

There’s no short of listening innovation here. A revamped iTunes directly threatens Spotify and Pandora. Apple holds all the cards in ushering in the next phase of the music industry.

$54 million/quarter is a big number considering the payout per stream is about a penny.

It’s amazing the the download is now considered a “traditional” sale.  

I just hope that streaming rights open up the world so that the money continues to pour in from everywhere, 24/7.  Keep music on tap. 

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