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Blockchain is music to music industry’s earsBy Swati Keswani | April 6, 2018, 7:41 a.m. GMT
Let me tell you a story about a rich guy getting richer. In 2014, 50 Cent – an American rapper decided to allow people to buy his album with Bitcoins. At that time Bitcoin was worth around $660 and he made sales of approximately 700 Bitcoins. Celebs can be forgetful, after all they are not used to setting reminders for paying utility bills every month like you and me.
He forgot about those Bitcoins until he didn’t. At today’s value, he realizes those Bitcoins are worth $7M- that’s a lot more valuable than just 50 Cents, even for 50 Cent. There is a lot that blockchain will do for music. It will also undo a lot. Piracy, studios squeezing musicians, unpaid royalty could all get undone and be a thing of the past. Read on to see how.
Why does the Music Industry need Blockchain?
Some of the threats that the music industry is facing today are:
- Music piracy being done through illegally downloaded, copied and shared content eats into the artist’s royalties and music labels revenue
- Lack of robust rights management system, which leads to loss of revenue to the artist
- The time that revenue takes to reach the artist can at times be in years
- Unpaid royalties are one of the major concerns, which are often suspended in various stages due to missing information or rights to ownership
How may Blockchain rejuvenate the music industry?
One of the reasons why Blockchain will do wonders for the music industry is that the Blockchain ledger establishes a direct relationship between creators and consumers. So, Blockchain could transform the way of publishing, monetization and the relationship of artists with their communities of fans.
Blockchain solutions for Music Industry:
Say No to music robbery
We have been hearing of scams of music being stolen or duplicated. This can be solved by publishing the music file on the blockchain ledger with a unique identity and a time stamp in a way that is effectively tamper-proof. This solves the historic problem of digital content being downloaded, copied and modified at the leisure of users. The publishers can store metadata containing ownership and rights information in a transparent and immutable way for everyone to see and verify. This ensures that the correct set of people are getting paid for the use of the content.
A New breed of On-demand services
Blockchain can revolutionize music industry monetarily as well. As the Blockchain ecosystem enables Smart contracts, programs can be rolled on the platform with payment gateways.These gateways will accept Blockchain-based cryptocurrencies such as Bitcoin or Ethereum which is now impossible with classic payment methods due to high transfer costs. This will result in a new way of offering on-demand music services. Users can select the track of their choice and instantly reward the authorized owners with cryptocurrency upon playing it.
So paying with cryptocurrencies not only eases down the way of rewarding artists for consumers but also with increasing value of cryptocurrencies it adds up benefits for artists.
Also, composers and artists will save a considerable amount of their revenue if they adopt Blockchain. They will not need to engage with platforms and financial brokers, artists will directly get paid every time their songs are played.
Blockchain is already doing wonders for music. Ask Imogen Heap about it.