Platforms like Spotify, iTunes, SoundCloud, and other music streaming services allow music artists and listeners to connect. We can now listen to music any time we want to with the help of technology. However, integration of blockchain and artificial intelligence now defines much of the music industry whether we are ready to face it or not. One phenomenon that has become common along with the streaming platforms is that of artists signing up if they want to monetize their music. As a result, the money that artists receive is either controlled by the labels or the streaming platforms, often taking longer to reach the artists’ accounts.
Benefits of Blockchain in Music Industry
Mainly, blockchain is initiating a token-based economy which allows the artists to control their intellectual property by turning it into a financial asset. The token which belongs to the artist will show the accurate value of the work and therefore, anyone that purchases the work will own a share. As more people listen to music, the revenue will be earned by the artist as well as the shareholder.
Furthermore, this enhances the music business as the artists will be able to earn the money upfront. They will not have to seek music labels for the monetization from a music label. This means that the artists can stream their music on Spotify or SoundCloud etc. as well as control the royalties they earn.
The third prospect we can aspect to change with blockchain is that of licenses and agreements between music publishers. The blockchain has the potential to make space for a system that can maintain the database of music copyrights. Moreover, anyone interested to access the information to learn about the copyright owner can look into the details easily. The music industry at the moment has a complicated system of recording agreements that control the artist’s royalties due to the lack of clarity in ownership.
Future of Blockchain in the Music Industry
It can be anticipated that the music industry will someday fully embrace blockchain and radically change the industry. At the moment, it seems far-fetched for blockchain to completely takeover. However, it takes a startup to turn into a million-dollar enterprise and we can already see examples like VOISE, Ujo and many others.
Another startup worth mentioning is the Viberate which started back in 2015 and has been growing ever since. It already has many famous artists that are recognized on the platform including Imogen Heap, Robbie Williams, The Chainsmokers, and several others. The Viberate team is leading blockchain in the music industry by the example of providing music solutions.
However, this change is not only beneficial to the artists or shareholders because according to A-Rayz, “Tokenization allows fans to be active participants in an artist’s creative work and share in the success of a project.” This statement implies that the listeners will readily have to adapt their preferences for musical platforms and switch along with their favorite music artists if they wish to hear their music and promote their work.