Businesses bring music licensing to the blockchain
While critics use the bear market as an opportunity to throw themselves over crypto and impair value, some projects take this opportunity to develop and launch industry-disrupting platforms on the blockchain.
In July, companies launched or revealed their intentions to build blockchain-based music licensing platforms that aim to change the way songs are licensed by reducing costs, removing intermediaries and bringing all the blockchain’s inherent benefits to the music scene.
In a comment on the topic, Mehmet Eryılmaz, CEO of the Web3 entertainment company Faro Company, said that blockchain provides a new framework for traditional industries. He explained that:
“Blockchain offers an opportunity to reconsider a new economic model for all entertainment, including the music industry.”
According to Eryılmaz, the most important and most important advantage of blockchain platforms is the fact that it allows full audience ownership. “This model has the secret sauce for full economic autonomy,” he said.
While blockchain-based music platforms have only just begun to emerge, the event provides a preview of what technology can do for music. Without further ado, let’s take a look at some projects that aim to bring music ownership rights to the blockchain.
Dequency creates a blockchain-based music rights portal
The Web3 project Dequency has launched its music licensing platform after completing the beta phase. The team has created a decentralized licensing portal for licensees and creators of music, and allows them to carry out their licensing transactions directly.
In an announcement sent to Cointelegraph, Keatly Haldeman, CEO of Dequency, said that the platform uses Web3 tools such as smart contracts and crypto to facilitate more efficient licensing transactions and payments. Haldeman explained that the platform allows easy licensing for audiovisual content creators who need a diverse music catalog.
According to the team, the project is built on the Algorand blockchain and will also provide on-chain licensing for blockchain-native content.
Sound composer reveals plans to launch music licensing platform on Bitcoin SV
SphereTrax, a project led by Sefi Carmel, a prominent composer who also designs sounds for upcoming cryptocurrencies, has announced that they will launch a music licensing platform based on Bitcoin SV (BSV) later in 2022.
In a press release, the team told Cointelegraph that the platform will cure a gallery of tracks and songs that can be used in movies, TV and commercials. Apart from these, the team said that the audio tracks curated by SphereTrax can also be implemented in games, virtual reality (VR) and augmented reality (AR).
According to Sefi Carmel, the project will be an improved music library that provides accessible and up-to-date tracks for the creative industry. Carmel also noted that this move is a preparation for the wider use of VR, AR and metaverse technologies.
Royal lets fans own music with favorite artists
Last year, music producer Justin Blau, also known as 3LAU, launched a music licensing platform called Royal. The platform was created to support music projects by letting fans invest and own songs with them.
In January, the platform collaborated with the popular rapper Nas, so that fans could acquire non-fungible tokens (NFTs) that give them ownership of some of the artist’s songs. This allows NFT holders to earn with Nas on the songs titled “Ultra Black” and “Rare.”
Related: Experts explain how music NFTs will enhance the connection between creators and fans
As the introduction of blockchain-based licensing platforms continues, these projects may also meet their fair share of challenges. According to Eryılmaz, two potential roadblocks for these projects include misrepresentation and legality. To combat this, he explained that:
“To get past this, be transparent and responsible. It will be a better practice to explain in more detail to a buyer with a separate document after music NFT purchase what rights they are exactly buying and what rights they are entitled to as an NFT holder. . »
In addition, Eryılmaz emphasized that it is very important for projects to be detailed regarding information related to the duration of the rights, territories and rights in terms of revenue generated.
