Polyphonic Case

The following are the reasons: 1 . Polyphonic can provide more demonstrable value to the record Labels. Since the record companies, because of their hefty Investments, have the most to lose If an album or a song does not catches the publics fancy, they are more focused on economic returns than artists and producers. Also, record companies have the financial resources to Invest In Hit Song Science (HAS). 2. Record companies can use the HAS to decide which single to release first.

The marketing expense for releasing a single for an unknown artist is a huge $30,000. So record companies can use HAS to identify which song out of an album has the best chance to become a hit. 3. Most of the record companies use “gut instinct” or expensive internet polling, call-out research, focus-group research to forecast sales. Still, the success rate is Just 10% because this method is not sure-shot. Using HAS will allow labels to eliminate such costs and have a “more-definitive” method for identifying hits.

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B.

Since Polyphonic has limited budget ($150,000) but Is catering to record abeles, much smaller In number in comparison to unsigned artists and producers, It can do a lot more In promotion. It can look to give Information In a simpler manner, through websites, to simplify science’ utility In music to convince skeptics. It can offer free trials for the first 6 months to a few record labels and If Its claim of 80% accuracy is true, that record label will benefit drastically and the word of HAS’ utility will spread. Also, it should initially price HAS much lower than $3000 of of internet polling rice but increase as it gains mileage NAS 2.Record companies stand to gain more from this technology NAS 3. The success rate of a single becoming a hit without HAS is 10%. The medium estimate of expected values (taking the conservative, safe approach) of a single reaching top 40 Is: $200,000 and a single not reaching the top 40 is: $10,000.

So expected value without using NOW, the success rate of a single becoming a hit with HAS Is 80%.