Streaming fraud whack-a-mole: how do music distributors spot – and stop – fraud on music streaming platforms? Christine Barnum, CD Baby’s Chief Revenue Officer, explains.
Sep 28, 2023
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Christine Barnum, CD Baby's Chief Revenue Officer, discusses the challenges of detecting streaming fraud. They explore the definition of fraud, techniques used by fraudsters, and the collaboration between distributors and rights holders. They also share personal experiences with impactful music.
Streaming fraud encompasses abnormal consumption patterns, user activity, and geo-specific data, and CD Baby utilizes machine learning and data analysis to detect and address instances of fraud.
Collaborative efforts between DSPs and distributors like CD Baby are essential for combating streaming fraud and ensuring fair distribution of royalties.
Deep dives
Defining Fraud, Trust, and Safety in the Music Industry
Fraud, trust, and safety in the music industry, specifically regarding music streaming, is the focus of this podcast episode featuring Christine Barnum, CD Baby's Chief Revenue Officer. The discussion delves into how CD Baby attempts to detect and prevent streaming fraud, and the various tactics used by fraudsters to evade detection. The concept of fraud, trust, and safety is defined in layperson terms, highlighting the need for a more inclusive approach that covers a range of suspicious streaming behaviors, such as abnormal consumption patterns and account login behaviors. Utilizing machine learning and data analysis, CD Baby aims to identify and address instances of streaming fraud, working in collaboration with DSPs and industry partners to develop effective countermeasures.
Measuring and Identifying Streaming Fraud
Streaming fraud is characterized as any listening behavior that deviates from natural patterns, encompassing abnormal consumption volume, user activity, and geo-specific data. CD Baby employs a unique perspective as a distributor, allowing them to discern normal consumption trends across various DSPs. Anomalies, such as sudden spikes in plays or earnings, prompt further investigation to determine whether fraud or streaming abuse is occurring. CD Baby's trust and safety team conducts audits and evaluates data to identify outliers and build narratives around streaming patterns, utilizing various metrics and information to establish normal consumption thresholds. The potential role of machine learning is discussed, emphasizing its value in detecting and addressing fraudulent activities.
The Impact of Streaming Fraud
Streaming fraud has wide-ranging consequences for different stakeholders in the music industry. DSPs are adversely affected as the royalty pool gets divided among more individuals, resulting in a decrease in payouts for legitimate artists and rights holders. The competitive dynamics of the streaming ecosystem and the quest for visibility and success drive some artists to engage in fraudulent practices, either knowingly or unwittingly. CD Baby's role as a distributor involves promptly identifying and stopping fraudulent activities, ensuring fair distribution of royalties. Collaborative efforts between DSPs and distributors are crucial for combating fraud effectively and safeguarding the overall integrity of the music streaming industry.
Ep. 124: in this episode we’re joined byChristine Barnum, CD Baby’s Chief Revenue Officer – we’re talking about music streaming fraud, how the company tries to spot it, and what the fraudsters are doing to try to avoid being detected. Christine’s job is a form of fraud whack-a-mole: trying to spot suspicious streaming activity before paying rightsholders. We talk about her efforts in “fraud, trust & safety” from the perspective of a distributor – including how she defines streaming fraud, how difficult it is to spot, how widespread fraud really is – and what a distributor does to stop it.
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