Even harsh critics of Bitcoin admit that blockchain technology itself has its merits. Although its use cases are currently mostly focused on financial applications, this is bound to change in the future. Once it matures sufficiently, Blockchain technology has the potential to change the world and disrupt many sectors. One of those is the music industry. Blockchain for music applications could disrupt a stagnant sector and benefit artists that have suffered from uneven distribution of royalties.
Blockchain for music industry professionals is a much-needed evolution
Despite the emergence of streaming services as the primary way of consuming music, the sector still needs change. Possibly more than any other creative industry, the music industry has been plagued by gatekeepers and middlemen that have severely curtailed artists’ profits. Although streaming services have theoretically exposed an artist’s work to a wider audience and done away with piracy, they have also widened the income discrepancy between top performers and the majority of musicians. Much like in other performance-oriented industries, a small share of performers pockets the lion’s share of income, which is before even accounting for what artists have to shell out to labels and tech platforms. Unfortunately, unlike in sports, there’s not even a guarantee of the best rise to the top in creative industries.
Advantages of blockchain for music
This is where blockchain for music industry professionals can make a real difference. While it cannot completely erase the income inequality arising due to the country of origin or genre the artist is performing in, it can at least level the playing field somewhat by giving artists more control over the distribution of their work. Several projects are already working on solutions that will empower artists, simplify the industry, and create new revenue sources.
For instance, Opus is working on creating a fully decentralised streaming platform that would remove costs associated with hosting fees for streaming platforms. It would also allow artists to get paid directly through smart contracts upon releasing a song, allowing for independent distribution of content and royalties.
Another project, Ujo, provides a decentralised database of music ownership, allowing artists to upload their creations, collect all of the revenue earned, and automatically split payments with collaborators of other projects.
ANote Music, a start-up based in Luxembourg, allows users to invest in music royalties, thereby unlocking another revenue stream for artists. Users can buy and trade music royalty shares on a secondary market and “unlock the hidden value in music for both investors and artists” in the words of its CEO.
The future of blockchain for music
How quickly blockchain technology can upend existing structures in the music industry will likely depend on the success of cryptocurrencies and their public perception. Financial blockchain applications are still the number one driver of blockchain adoption, which is unlikely to change in the near term. That said, progress is being made, and the beauty of blockchain technology is that it empowers the individual. Thus, it is in the artists’ best interests to drive the adoption process by educating their communities about the benefits of blockchain for music industry professionals.
