Web3 for Music Industry
While the giant composers continue to sell their catalogs, the reactions to the injustice of the music platforms continue… Could the imagined Web3 on crypto be the new haven for musicians?
With Putin’s horrible invasion of Ukraine, the world’s first reaction to the war was the economic sanctions imposed on Russia. The restrictions imposed by both Europe and the United States affected Russian citizens who were unaware of the atrocities and protesting the occupation, as well as those who supported the war. One of the most important facts of this war has been the deep relationships that the biggest players in the world economy have established with each other over the years.
How Web3 Elevates Customer Experience
As I follow the growing NFT and crypto market on the one hand, the events brought the question to my mind… If Web3 had been able to dethrone Web2 so far, would these sanctions have been so striking for civil societies?
A NEW TRADE APPROACH
Web 2.0 is a term that represents the user-based internet age we have entered with the emergence of social media… Web 3.0 is just an idea for now. As you know, nowadays, when our lives are moved to the digital world, applications on the internet are not only a means of social communication, but also a source of livelihood. However, the money earned from Spotify or Instagram and the advertisements placed on these platforms are ultimately subject to the tax rules of the country we live in and the terms of the bank accounts we use.
Why Ethereum is more solid to create smart contracts?
Web 3.0, launched in the last ten years, is based entirely on the crypto technology and the free trade understanding that is expected to continue with this technology. So if Web3 one day replaces Web2, we will have entered a system where we trade in cryptocurrencies, where records of all artworks are kept in digital ledgers. Of course, the music industry is also a part of this possible scenario.
HOW DO THE STONES SIT IN PLACE?
For now, the number of people who do not trust cryptocurrencies is more than the number of crypto investors. A similar situation applies to NFTs. Unlike cryptocurrencies, NFTs stored on blockchain ledgers with digital signatures, just like unique artworks, have already been auctioned off in various formats by some musicians. Some of them took the copyrights of some of their songs into pieces and put them up for sale in NFT format. NFT is especially suitable for the art world, as it can take on many formats as long as it is a work whose uniqueness is proven by data.
Web 3 (Semantic Web) Usage Areas
But for Web3 to be set in motion, crypto must be accepted around the world. As a matter of fact, there is no guarantee that musicians will not suffer injustice on platforms with Web3 infrastructure, while the world is not yet able to cope with the pursuit of the values appraised for works of art sold on Web2. Just as there are people whose crypto wallets have been hacked, there will be musicians whose songs have been converted to NFT without the necessary permissions.
Still, it’s a welcome development for musicians that Web3 is now on the doorstep of patrons who have yet to adapt to the Web2 layout. This development slightly increases the pressure for Spotify and similar subscription music platforms to increase the monetary value they set per listen in order to survive in the long run. At this point, it is an important detail that social media sites, especially Instagram and TikTok, generally play a larger role in the discovery of artists. In short, if Spotify becomes a tool that does not satisfy musicians both in terms of promotion and financially, it will lose its value in the eyes of the industry over time.
IS THERE A DIFFERENT PLATFORM?
Of course, there is another possibility…
One day, we may find ourselves applying to such platforms only to listen to the works of certain musicians. Because the major record companies, which own shares in most music platforms, are busy buying the copyrights of the catalogs of legendary composers one by one. There is even now an investment firm that has skyrocketed in the London stock market by investing only in the copyrights of musical works: Hipgnosis Songs Fund. The company, born in 2018, which most recently bought the catalog of Canadian songwriter Leonard Cohen, also includes works by 50 Cent and the Red Hot Chili Peppers.
Unlimited Possibilities with Smart Contracts on Web3
In other words, while music platforms are persistently trying to hold on to their pathetic numbers per listen, music is getting the value it deserves both in the London stock market and in the crypto market. We may have to wait at least another decade for Web3 to become the new home for musicians… Maybe that day will never come. But one thing is certain: All indications are that sooner or later the music will find the monetary value it deserves.
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