Have you ever wondered what innovation sounds like?
We have. Let’s look at a few ways blockchain can revolutionize the music industry.
First, the good news: In 2014, $15 billion in recorded musical revenue, globally, was reported by the International Federation of the Phonographic Industry.
The better news: According to ABI Research, it is estimated that by 2018, 191 million streaming subscribers will generate $46 billion in revenue.
The bad news: Most of this money is going to the wrong people. Only a tiny portion makes it back to the artists as ongoing revenue.
How is this possible?
This discrepancy occurs because even though data and micro-payments can be tracked, the media industry has yet to establish a consistently updated standardized method to monitor music sales and monetary distribution.
But there’s a solution on the horizon: blockchain!
A recent report from Deloitte states,
“Blockchain technology permits bypassing content aggregators, platform providers, and royalty collection associations to a large extent. Thus market power shifts to the copyright owners.”
Here are three more ways blockchain can help these artists:
Getting customers to buy music more often
By introducing micropayment-based pricing models blockchain can lead to less piracy. Many digital natives are willing to pay a small price for their favorite track. With no credit card processing fees being added to their purchases, they will be more likely to buy music, rather than sending a pirated copy to all of their friends.
Due to blockchain’s ability to gather data objectively, it can increase copyright tracking accuracy, which will lead to royalty payments reaching the artists. As the blockchain database grows, copyright infringements and piracy could be eliminated.
Blockchain can increase efficiency throughout the entire process of creating music by monitoring contractual agreements and distribution of profits. It can also make marketing easier by tracking where money is spent and on which products.
There are many other ways blockchain can benefit artists, consumers, and producers.