Industry Insider: Noctil Founder Jacob Varghese on Career, Music Consumption & the Industry’s Future

In spearheading the new platform Noctil, Jacob Varghese has taken on some much-needed leadership in an area where leadership is badly needed. Established in 2016, Noctil is a metadata platform that enables music rightsholders, publishers, and administrators to maximize revenue efficiently. Not a coded platform, it can be adapted to any industry standard and in-house data models. With Noctil, customers can reduce their costs by 80 percent. They can increase their metadata accuracy by up to 98 percent, and they can increase royalty payouts by 98 percent. Noctil’s mission is clear: It is designed to maintain and promote the spirit of artistic creativity. Rightsholders deserve to be paid their fair share, and Noctil helps ensure that.

Varghese is the founder of Noctil. Along with ensuring people are paid for their work, he also seeks to make technological advancements to push the industry forward. Before Noctil, Varghese worked in the telecom, media, and entertainment industries. His leadership role in this endeavour has been invaluable to everyone in the music industry. Working with Music Licensing Companies has given him a detailed understanding of music and audiovisual rights and the licensing process. He has become a great mentor and role model to artists who are too often overlooked.

Varghese joins us for our Interview & Feature column, “Industry Insider,” to discuss his career, the music industry, technology, AI, and much more.

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What’s the most valuable long-term professional relationship you’ve built over your career, and how did you maintain it? What advice would you give for cultivating lasting relationships in the industry?

Jacob Varghese: “In the early years of my career, I had the good fortune of working with a global technology company. Consulting gave me a unique advantage over industry roles by exposing me to a diverse range of organizations and people, with each project bringing new challenges and collaborations. Building trust was essential; once established, the internal team often came together seamlessly, sharing a strong foundation of mutual understanding. Through this work, I’ve formed numerous meaningful professional connections, each invaluable in its own right.

“To me, the qualities of authenticity and trustworthiness are central to all my relationships. Maintaining these connections requires regular, genuine engagement; it’s important to reach out to offer help, not just when seeking it. Relationships built on reciprocity and mutual support—where you give as much as you receive—tend to be the most rewarding and enduring.”

What’s one technological advancement you think artists should embrace to stay ahead of the curve?

“Technology is evolving so rapidly that it’s not about a specific advancement, but rather about a mindset of adaptability. We’ve seen this firsthand in the music industry, where the shift to digital and streaming has reshaped the landscape. Artists and labels who embraced these changes thrived, while those who resisted are either left behind or are facing the uphill battle of playing catch up.

“I do believe that a basic understanding of data and metadata is crucial, especially for independent artists that may not have big label teams supporting them. This knowledge can help them ensure their music is properly attributed and matched to royalty collections. Additionally, it can aid in effective marketing and online advertising. Data is everywhere and taking advantage of it can help propel your career forward.”

Do you think streaming algorithms have helped or harmed the discoverability of new music?

“For the general consumer and casual music listener, I think it has helped. I’m talking about the people who don’t spend hours in record shops ‘crate digging’ or subscribing to music magazines or other forms of music discoverability. If you turn back time, most people used to discover new music through the radio, but now that radio listening is on the decline, how will people discover new music? Obviously, radio still plays an important role but for the casual listener who may only listen to music via a DSP such as Spotify, algorithms are vital to stay up to date with new tracks.

“For the passionate music listeners that already have a ‘discoverability’ mindset, it probably doesn’t make a difference. But the bottom line is that it probably doesn’t harm discoverability.”

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What do you think will be the most significant shift in music consumption over the next decade?

“The next decade will surely be driven by advancements in AI/machine learning and XR. We’re likely to see a shift towards hyper-personalized music experiences. For instance, imagine DSPs accurately detecting your mood and curating a playlist tailored to your emotions in real-time, rather than relying on manual selection.

“Beyond this, we can anticipate deeper integrations of music into social media, gaming, and esports. These platforms will become increasingly immersive, with music playing a pivotal role in enhancing user experiences. I think that as technology continues to evolve, the boundaries between music consumption and other forms of entertainment will blur, creating exciting new opportunities for artists and listeners alike.”

Do you think artists today need to have a deeper understanding of data analytics to succeed, or can they still rely on pure artistry?

“Data science is very important and something that underpins many aspects of our lives. And I’m not only talking about data science in relation to AI. Having general knowledge of how to interpret and use data is very important for all of us, whether you’re an artist or a music industry executive. As mentioned before, proper (and ethical!) use of data can help inform an artist’s strategies in relation to marketing and touring. Being able to understand where your music is listened to, and where it is selling can help you identify opportunities and gaps to inform further activities.”

What do you believe is the next big disruption waiting to hit the music industry?

“This is the million-dollar question that everyone wants to know. I do not have the supernatural ability to predict things but I have a feeling that we may see something concerning quantum computing. There have already been some examples of quantum computing used to make music, and I’m wondering whether we’ll see this super-advanced technology disrupting our industry to improve the infrastructure and supply chain of the music business.

“It’s already happening in transportation and logistics, so why not in music? It’s still a long way away and we haven’t seen specific use cases yet but I’d be surprised if there isn’t someone out there already working on something.”

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What are your thoughts on the role of music in immersive technologies like VR and AR? Do you think this is a new frontier for artists?

“I’m really excited about the future of music in virtual and augmented reality. Imagine a music video that you can walk around in or a concert where you feel like you’re right there with the band. It’s like a whole new world of music experiences.

“Of course, with these new technologies come new challenges. We need to make sure that all this new music content can be attributed correctly and matched to the correct rightsholders so that everyone involved can be properly remunerated. This means accurate metadata that communicates with international industry standards is more important than ever.”

Do you believe the rise of vinyl and other physical formats is a passing trend or a permanent shift in consumer behaviour?

“I don’t think the vinyl revival is just a passing trend. It’s been growing steadily for a while now. In fact, vinyl record sales have been increasing year over year.

“For many people, vinyl records are more than just a way to listen to music. They’re a tangible connection to the artist, a piece of art to display, and a nostalgic throwback to a simpler time. And more importantly, it’s a way to support artists, especially when purchasing directly from them at concerts, via platforms such as Bandcamp, their webshops, or record labels.

“Even though most of our music is digital now, there’s something special about holding a physical record. It’s like having a little piece of the music world in your hands. So, while digital music is incredibly convenient, I think physical formats like vinyl will continue to have a place in the music industry.”

What’s your view on how artificial intelligence is shaping music production, creation, and marketing?

“I think that artificial intelligence is playing a bigger role in the music industry than people realize. AI has been in action long before the terms ‘generative AI,’ ‘OpenAI,’ and ‘ChatGPT’ made headlines. Algorithms, or ‘recommendation engines,’ that recommend new music and movies display relevant ads on social media, or an Uber nearby. These are all powered by algorithms that are based on data science. Through AI, DSP platforms can improve the user experience and match their listening habits with new, undiscovered music. DSPs analyze audio features, metadata, and user interactions to recommend songs or artists matching a particular mood, tempo, or style and offer personalized recommendations.

“At Noctil we’re focused on using AI to improve the way an artist’s work is tagged, catalogued, and exchanged with various music organizations. This is essential in today’s digital age, where music is streamed and downloaded from all over the world. By using AI to ensure that music is accurately tagged with the right metadata, we can make it easier for record labels, music rights organizations, distributors and collecting societies to ensure that artists are properly credited for their work. This in effect helps music rightsholders maximize their revenues and get artists paid for the use of their work”

How do you think the rise of AI-generated music will impact the careers of human musicians?

“The rise of AI-generated music is a fascinating development, but it’s important to remember that AI is not here to replace human musicians. Instead, I see AI as a tool that can be used to augment human creativity. For example, an AI tool might be able to generate a new melody that a human musician can then use as a starting point for a song. Or, an AI-powered algorithm could be used to create personalized music experiences, such as generating a soundtrack that adapts to the mood of the listener.

“The key is to find ways to use AI in a way that complements human creativity in an ethical way that doesn’t infringe on copyright. AI algorithms can generate music that closely resembles existing works, raising questions about ownership and originality. Rightsholders and artists rightfully fear that their creations could be exploited without proper compensation or attribution. This issue has already led to legal battles and calls for stricter regulations to protect intellectual property rights.

“In fact, earlier this year Tennessee became the first U.S. state to pass legislation to protect musicians from unauthorized AI impersonation, while the RIAA and the major record labels filed a lawsuit against generative AI audio startups.

“To ensure that AI is used ethically and responsibly in the music industry, all stakeholders must work together to establish guidelines and standards. This includes developing clear definitions of AI-generated content, ensuring transparency in the use of AI, and protecting the rights of artists and creators. Tech companies that create AI-powered systems are also responsible for adhering to guidelines and standards. The industry can’t wait for the law to catch up and risk facing another Napster moment.”