How the blockchain will kill Music rights organisations status quo?

8 min readAug 28, 2023

Intro

In recent years, the emergence of blockchain technology has disrupted numerous industries, and now it has set its sights on transforming the music industry. With the advent of blockchain, music rights organizations are facing an existential threat to their status quo. The traditional model of managing music rights and distributing royalties is being challenged, and unless these organizations adapt and evolve, they may find themselves becoming obsolete in the near future.

PRS is dead — if it doesn’t evolve

The Performing Rights Society (PRS) has been a cornerstone in the music industry for decades, ensuring that songwriters and musicians receive fair compensation for their work. It has played a vital role in collecting and distributing royalties to artists, allowing them to earn a living from their creative endeavors. However, the rise of blockchain technology presents a significant challenge to the PRS and similar organizations, forcing them to reassess their strategies and adapt to the evolving landscape.

Blockchain technology, with its decentralized and transparent nature, has the potential to revolutionize the way music rights are managed. One of the most promising applications of blockchain in the music industry is the use of smart contracts. These self-executing contracts, powered by blockchain technology, can automatically enforce the terms and conditions agreed upon by the parties involved. In the context of music royalties, smart contracts can automate the process of royalty distributions, ensuring that artists receive their fair share without the need for intermediaries like PRS.

Imagine a world where musicians can directly receive their royalties in real-time, without any delays or uncertainties. With blockchain technology, this vision can become a reality. Artists would no longer have to rely on organizations like PRS to collect and distribute their earnings. Instead, they would have full control over their financial transactions, with complete transparency and accountability.

Furthermore, blockchain technology can also address some of the long-standing issues in the music industry, such as copyright infringement and piracy. By recording every transaction on a decentralized ledger, blockchain can provide an immutable and tamper-proof record of ownership and usage rights. This would make it easier for artists to protect their intellectual property and ensure that they are properly compensated for their work.

However, the adoption of blockchain technology in the music industry is not without its challenges. The transition from the current centralized model to a decentralized one requires careful planning and collaboration among various stakeholders. It also raises questions about the role of intermediaries like PRS in the future. Will they be able to adapt and embrace blockchain technology, or will they become obsolete in the face of disintermediation?

It is crucial for organizations like PRS to recognize the potential of blockchain technology and proactively explore its applications in the music industry. By embracing this technology, they can not only stay relevant but also enhance their services and provide greater value to artists. The future of music rights management lies in the hands of those who are willing to evolve and embrace innovation.

How Blockchain Could Change the Landscape of Music Rights

Blockchain technology has the potential to revolutionize the music industry by creating a more transparent and efficient ecosystem for managing music rights. It offers a secure and immutable ledger that can provide an accurate record of ownership, licensing, and usage rights.

By implementing blockchain-based solutions, the complexities of tracking and enforcing music rights could be greatly simplified. Smart contracts could automatically detect and verify music usage, ensuring that the appropriate royalties are paid to the rightful owners. This would greatly reduce disputes, improve transparency, and ensure that artists receive fair compensation for their creative works.

Imagine a world where musicians have complete control over their music rights, with the ability to track every usage and transaction in real-time. With blockchain technology, this vision is becoming a reality. Artists can register their music on a blockchain platform, creating a digital fingerprint that serves as proof of ownership. This fingerprint is then stored on the blockchain, making it virtually impossible to alter or manipulate.

Every time a song is played on a streaming platform, a smart contract is triggered, automatically verifying the usage and calculating the appropriate royalties. These royalties are then distributed directly to the artists’ digital wallets, eliminating the need for intermediaries and ensuring that artists receive their fair share of revenue.

But the benefits of blockchain technology go beyond just royalty payments. It also has the potential to revolutionize the licensing process. Currently, licensing music for use in films, commercials, and other media can be a complex and time-consuming process. With blockchain, this process could be streamlined, allowing for instant verification of rights and faster clearance of licenses.

Furthermore, blockchain technology can also help protect artists from copyright infringement. By creating a decentralized network of nodes that verify and validate transactions, blockchain ensures that every usage of a song is recorded and cannot be tampered with. This provides artists with a strong evidence base in case of disputes or legal actions.

Additionally, blockchain technology can enable new business models in the music industry. For example, artists can tokenize their music rights and sell them directly to fans, creating a new form of crowdfunding. Fans can then trade these tokens on blockchain-based marketplaces, allowing for a more direct and transparent relationship between artists and their audience.

Overall, the potential of blockchain technology to transform the landscape of music rights is immense. It offers a secure and transparent solution to the complexities and inefficiencies of the current system. By leveraging blockchain, the music industry can create a fairer and more sustainable ecosystem for artists, ensuring that their creative works are properly protected and rewarded.

Blockchain: The Future of Music Rights?

The potential benefits of blockchain technology for music rights management cannot be overstated. The decentralized nature of the blockchain removes the need for intermediaries, reducing costs and increasing efficiency. With distributed ledger technology, music rights transactions can occur directly between artists and consumers, bypassing traditional intermediaries altogether.

Imagine a world where musicians have complete control over their own music. Blockchain technology has the power to make this a reality. By utilizing smart contracts, artists can set their own terms and conditions for licensing their music. This means they have the freedom to negotiate fair deals and retain more control over their intellectual property. No longer will artists have to rely on record labels or music publishers to handle their rights. They can be their own boss, making decisions that directly impact their career.

But it’s not just about empowering independent artists. Blockchain technology also benefits consumers. With the elimination of intermediaries, the cost of music can be significantly reduced. Artists can sell their music directly to fans, cutting out the middleman and passing on the savings. This not only benefits the consumer’s wallet but also supports the artists by ensuring they receive a fair share of the revenue generated.

Furthermore, the transparency and immutability of the blockchain provide a secure and reliable system for music rights management. Every transaction is recorded on the blockchain, creating an unalterable and transparent history of ownership. This eliminates disputes and ensures that artists are properly credited and compensated for their work.

Performing (music) rights organisations need to evolve

In order for music rights organizations to survive in the face of blockchain disruption, they need to embrace the technology and adapt their business models accordingly. Instead of resisting change, they should view blockchain as an opportunity to innovate and create new value for their members and the music industry as a whole.

Music rights organizations can leverage blockchain technology to improve the efficiency of their royalty distribution systems, reduce overhead costs, and provide greater transparency to their members. By implementing blockchain, they can create a decentralized ledger that records every transaction, ensuring that artists receive fair compensation for their work.

With blockchain, music rights organizations can streamline their processes and eliminate the need for intermediaries, such as collection societies, which often take a significant portion of the royalties. This direct peer-to-peer system allows artists to receive payments in a more timely and accurate manner, bypassing the traditional delays and complexities of the current system.

Moreover, blockchain technology can enable music rights organizations to track the usage of copyrighted material more effectively. By creating a transparent and immutable record of every transaction, they can ensure that artists’ works are properly licensed and that they receive the appropriate royalties for their usage.

Furthermore, music rights organizations should consider collaborating with blockchain startups and developers to explore new ways of managing music rights. By working together, they can harness the power of blockchain technology while retaining their expertise and industry knowledge. These collaborations could lead to the development of innovative platforms that revolutionize the way music rights are managed and monetized.

In addition, blockchain can empower artists by giving them more control over their own intellectual property. Through smart contracts, artists can set the terms and conditions for the usage of their music, ensuring that they retain ownership and receive fair compensation. This level of autonomy and transparency can foster trust between artists and music rights organizations, leading to stronger relationships and a more sustainable music industry.

In conclusion, the rise of blockchain technology poses a significant challenge to the traditional model of music rights organizations. It is imperative for these organizations to evolve and embrace blockchain technology to stay relevant in the ever-changing music industry. Failure to adapt may ultimately lead to their demise, as the blockchain revolutionizes music rights management, offering a decentralized and transparent alternative. Now is the time for music rights organizations to seize the opportunity and shape the future of the industry.