How blockchain can change the music industry for the better

The music industry has been unstable for the longest time, filled with all kinds of flaws. For example, there are feuds over dividend distribution, privacy issues, falling revenues and a lack of transparency in the industry. For many years record companies have ruled the music industry, producing, distributing and promoting CDs and records. However, file sharing services emerged and the position of these labels was threatened in a small measure.

Many streaming services such as Spotify became top players in the industry, allowing singers to earn more money than ever before. These streaming services allowed music lovers to buy Bitcoin and exchange it for fiat to download music. Then came file-sharing services that threatened the place of the streaming services, and the chain of accusations was transferred. This chain has caused serious tension in the industry, but the advent of blockchain technology has changed everything for the better.

What role does Blockchain play in the music industry?

Blockchain’s decentralized nature is a plus for the music industry as it means there is no central control. It can transform publishing and monetization and improve artists’ relationships with fans if used in the industry. First, music artists can publish their songs on the ledger with a timestamp and unique ID. Blockchain ensures that this file is immutable and that only people with permission can access it, potentially solving the problem of music piracy.

Furthermore, blockchain can revolutionize the way music is monetized, especially considering that it is based on smart contracts. Smart contracts are programs that run on the blockchain along with payment transactions, and artists who invest in cryptocurrency can benefit.

Cryptocurrencies based on the blockchain can support micropayments, which is impossible with traditional payment methods that entail high transaction costs. As such, blockchain could support a new way of providing on-demand music services where users select their records and pay with crypto. This means that people only need to buy Bitcoin or other crypto to access their favorite music.

Furthermore, this decentralized distributed ledger technology can improve the relationship between content creators and consumers, establishing a more direct relationship. Artists and composers will no longer need to go through financial brokers and purchasing platforms.

They get to save the heavy cut these channels take because they can now be directly compensated every time someone plays

their song. Thus, amateur producers who have not yet found a major label to support them can make it on their own.
Is Blockchain already in use in the music industry?

Several music companies have already integrated blockchain for various purposes, and below are some of them:

• Digimarc – This company develops intellectual property licensing for image, audio and visual content. It has begun integrating blockchain to help license music, using Digimarc Barcode fingerprinting technology. This technology connects to metadata to track music sources, measure how songs are used, and estimate payments. The barcode was used to track interactions with music in the Angry Birds software by Rovio, the Angry Birds movie production.
• Wet – This music rights marketplace gives music consumers direct access to their favorite composers, artists and producers for financing. It collects royalties from performing rights companies, publishers and record labels for fans and uses blockchain to track them. The company has already collected rights to songs by Kanye West, Drake, John Legend and Jay-Z, with more to come.
• Vibrates – Viberate is the largest live music database globally, using blockchain technology to manage millions of audience data with real-time profiles and ratings. The company also has its own preferred digital currency, VIB tokens, which it often awards to community members.
• MediaChain – MediaChain works with music artists to ensure they receive fair payments for their content. It issues smart contracts to artists who provide their royalty provisions, eliminating the confusion associated with contingency and third parties.

Does Blockchain Have a Future in the Music Industry?

We can’t outright say that blockchain will be the perfect solution to the music industry’s problems. However, we can say that it will affect it significantly and positively. Music fans will have direct access to their favorite artists, and their content and artists will discover new markets. More so, the real owners of the industry, the songwriters, artists and performers, will finally own their content and get their due.

However, we expect an uproar from those who profit from this lack of transparency in the music industry. Also, large technology companies that would rather monopolize than share are unlikely to welcome this change. Therefore, the industry should expect a series of clashes as it aims to give this idea traction and real momentum.

Nevertheless, if blockchain is incorporated into the industry, it will create a transparent system that will generate a lot of revenue. Also, consumers will spend less to access and listen to music, and artists will have control over profits.

Conclusion

Blockchain technology makes the future of the music industry look bright as it seeks to expand creativity and profit potential. It will address copyright issues, allow content creators to own their craft and turn consumers into marketers themselves, giving them a chance to profit. Collaboration with the cryptocurrency market through the incorporation of blockchain technology can greatly transform the music industry.