Why Blockchain is the answer for the music industry?
Getting down with your favorite genre is easier than ever, power up your computer or turn on your smartphone and select your preferred music app. Household names like SoundCloud, Spotify and Apple Music are on standby to fill your ears with a lifetime of music. As a consumer, you may shell out monthly to get your ears access to streaming services. Everything is fine, the platforms handoff of the money to the artists all the same, yeah? Actually… Maybe not
In a just world, artists will get their unspoiled cut per play. Of course, we can’t forget about the other rights holders like music labels, producers, etc. Each party is staking their claim on the cash flow. Making heads from tails on who gets what quickly becomes a mess. Things can be further complicated when you factor in the metadata. Metadata, which is tied to tracks, is valuable information such as who the right holders are. But, this data is frequently overlooked, not standardized, or incomplete when entered in, in the first place. Moreover, it only takes a quick shake of the first to strip it away. Incorrect or missing metadata means that an artist has a harder time tracking plays online and may not get paid for their work.
For a while now, musicians voiced their anger in the titanically successful music distribution platforms that do little outside of serving themselves. Recently Spotify unveiled itself with an IPO and witnessed their valuations explode to over $25 billion with their employees taking home juicy wages of about $170,000 a year.
Regardless of these high figures, musicians that partner with Spotify receive less than a penny each time a song is streamed. Hardcore fans would need to play a track two hundred times in one year to contribute dollar through Spotify.
Revenue Sharing Solved With Blockchain
Blockchain may be the blueprints for solving this problematic income distribution. Specifically, the smart contract element of the blockchain. Every person involved from the top to bottom would know how each dollar is parcelled out. It can even be a painless way of leasing music from license holders.
By linking in all of the rights holders into the blockchain, a public database is created. Anyone can take a look and run the same numbers as the corporate bean-counter. In addition to horizontal access to data, musicians can get their payments in real time, minus the time it takes to compute the transaction, instead of the months and years that it takes with the current system.
Salvation for both the indie band and corporate leader
Beginning with the sales of records. The old school method is as outdated as the abacus. The system of selling physical records was designed for a different time, queue phonograph. Music has evolved and has found a home in the digital sphere. Of course, there will always be collectors, the audiophiles that buy up vinyl like bread. But there also needs to be innovative around transparency and direct-to-fan engagement, which blockchain can do. Direct contact with the consumer and the content creator is possible with a decentralized system. Think about it, if you’re a musician and your favorite dive bar is streaming one of your songs, and you notice it on the blockchain, you can extend thanks. This is no truer for labels.
As anti-establishment blockchained music seems, this is simply not true; think of it more as a boost to efficiency to the industry as the whole. Everything said above is applicable to the suites.
Blockchain piles in an additional way of keeping tabs on copyright data by automatically compiling every transaction into a ledger. This tamperproof ledger would free up the immense resources locked down in lawsuits and arbitration. Off the top of the head, sales teams can track info like the consumption of MP3, WAV, FLAC files to streaming and best prepare a regionally, maybe even a locally specialized sales campaign! Show me the data! A remaking of live music, ticket sales, touring, merch is on the horizon.
Industry evolution, rather than the threatening term, “revolution”, will bring a streamlined efficiency to all. Not if, but when the music industry adopts blockchain and subsequently crypto, it will in essence do two things: fortify indies with transparency that reduces the roles of the middlemen (labels, retail stores, streaming platforms and others) which allows them to nurture their own ecosystem, and secondly, it will allow labels to bust through the roof in leveraging blockchain analytics into intelligent low waste action. Knowing is half the battle after all!
RECORD Foundation runs the first reward-based music service platform, RecordFarm. A solution to the traditional music industry, it creates the healthy environment where creative works are valued, curations from users are rewarded, and transparency is ensured. The new ecosystem, driven by blockchain technology and RECORD token, simplifies the process and eliminates unnecessary intermediaries.
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RECORD Foundation runs the first reward-based music service platform, RecordFarm. A solution to the traditional music industry, it creates the healthy environment where creative works are valued, curations from users are rewarded, and transparency is ensured. The new ecosystem, driven by blockchain technology and RECORD token, simplifies the process and eliminates unnecessary intermediaries
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