The music industry has been through many ups and down but mostly downs with issues arising from dipping revenues throughout its timeline, less transparency, privacy, and disputes over royalties.
In this industry, music companies don’t prefer streaming services. At the same time, streaming services doesn’t prefer file sharing services. And, top of that, singers and artist hate almost everyone for feeding off their toil and giving them the crumbs.
Amid so many disputes, there hasn’t been a service or a single business model that can cater to everyone in a fashion that satisfies all parties involved. But going through all of this, music industry has finally found the light on the end of the tunnel– The blockchain technology, empowering the cryptocurrencies.
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How Blockchain can Benefit the Music Industry?
For the music industry, the blockchain can provide new updated methods to enhance publishing, monetizing and the relationship between artists and their fans worldwide.
The blockchain technology can help us giving music a unique ID and time stamp which is impossible to alter. It will help remove the wrong tradition of downloading, copying, and modifying digital content over the internet. As it will provide a transparent and immutable method of storing ownership and rights information for each record.
And, finally, one of the most prominent benefits of blockchain, it enables a direct relationship between artists and their fans. Which results in composers and singers not associating with purchasing platforms and financial brokers, getting directly compensated each time their music is played. It can also help all that new amateur produced who are not backed by big record labels.
And there are many more benefits of blockchain technology in music industry. Following are some of the few ways blockchain technology is transforming the music industry:
A robust system for royalty programs
The royalty distribution system employed by the music industry is outmoded and unreliable and does not prefer prioritizing the artist in any way. And inadequate accuracy in keeping the record of contributors in a music piece, results in mismanagement of royalties, and late processing of payments.
This issue is hard to ignore as more new artists coming in without the proper knowledge of tackling this issue in timely manner. But with blockchain, the royalty payment can become swift and seamless by utilizing smart contracts. On blockchain these agreements will performed automatically. Thus, distribution of royalties can be done in an instant.
Without a single database, the music industry is suffering from documenting ownership for all music and recording copyrights in various several databases. Which makes it hard for the artist to be paid fairly and brings confusion to the table.
But blockchain technology can minimize the risk of this issue by making the information available in a single database compared to storing them in hidden databases. It will help create an ecosystem of trust and loyalty for singers and composers.
In the last few decades, music piracy has turned into the biggest factors contributing to the downfall of the music industry. If the industry utilizes Blockchain technology then it can control the spread of pirated music, making the industry economically stronger and, in turn, the industry will pay more fairly for the work people do. There are several ways blockchain technology can halt piracy.
Cutting Out Third-Parties
The third parties that help artist get on their foot take almost all control over their income and even influence what music is made and heard by their fans. As a decentralized system, the blockchain technology is considering this issue smartly by offering a completely transparent platform from peer-to-peer network.
Moreover, these smart contracts help artists get paid instantly and directly when someone plays or buys a song. Which helps in evenly compensation of royalties and payments.
With blockchain, creating a single database for recording intellectual property rights for artists becomes simple and straightforward. Blockchain offers a distributed ledger that is open-source for holding a collection of information about the artist.
Practically speaking, blockchain technology can be presented as clear evidence for recording ownership and used in court if required. This can help prevent legal battles between studios and artists which are frequent in the music industry.
It would be a big assumption to say that blockchain can solve all of the music industry’s problems. But truly it is the only path that can fill the wealth gap between record labels and artist.
Theoretically, when artists are paid accordingly to their efforts, they tend to get more motivated. All the struggling and new artist can have a piece of the pie if the blockchain technology is implemented.