Music Industry Renaissance in a New Digital Era

Why blockchain is a game-changer for the popular sector

Music has served as an inspiration to people since times immemorial regardless of the country, age, beliefs — being a perfect getaway from routine life to the place where one desires to be. It gives the possibility to relax and start exploring the horizon beyond known instantly.

Technological advancements brought in the most drastic changes in the music field, including reshaping the way of content distribution. Despite constant changes in style and trends, this industry sees no shortage of new creative minds that continuously fuel further progress and set new directions. No pandemic or other unpredictable events can slow it down. The global music industry’s total revenue is expected to consistently increase each year and surpass 65 billion U.S. dollars in 2023! Another forecast estimates that the revenue of the industry “music publishers“ in the U.S. is projected to reach almost 7 billion U.S. Dollars by 2024!

Even the latest infamous pandemic is not strong enough to stop the music industry from growing! The U.S. recorded-music business was still in an upswing in the first half of 2020, growing 5.6% at retail to $5.7 billion, up from $5.4 billion, continuing a positive trend. Music is one of the few things that no virus can beat.

Source: RIAA report

Music creators do art by their call, but money is not the last thing here anyway. The outdated distribution models had always caused musicians to suffer severe financial losses because of evident lack of transparency, increasing piracy problems, and conflicts over their dividends’ fair distribution. The advent of streaming platforms allowed to establish a more simplified entry to the market for the new players and the ability to capitalize on the music they produce. While the industry is growing by leaps in bounds in the digital space, the increasing role of technology can benefit the market participants in more ways than you think.

In all-digital 2021, music artists are still reduced in their abilities to get a fair share of the industry’s pie. With the steady adoption of highly-praised blockchain technology, years of struggle seem to end to creators’ benefit. The distributed ledger technology (DLT) was regarded as a cure for all, and many fraudulent attempts took place since countless projects tried to implement it in any field to later capitalize on the opportunity. This is undoubtedly not the case with the music industry, where blockchain can become a real disruptor, helping musicians escape dependence on third parties.

Unleashing the power of blockchain

With DLT in place, the processes of publication, monetization, and the relationship of artists with music fan communities can be transformed. The use of blockchain makes it possible to avoid the concentration of power in single hands, and decentralization is surely the obvious way to reach fair play.

With the advent of various blockchain-based platforms, musicians can get a long-awaited chance to receive fair royalty payments, venues can curb counterfeit tickets, and record companies can easily trace music streams and instantly pay all artists who contributed to songs or albums. Numerous artists will start to unravel the benefits of blockchain services and invest in the platform, and that will bear fruits and eventually produce yields — to subsequently build capital for other artists and get paid upfront based on streams or sales.

Blockchain solutions can fire up the revolution in the field of music monetization. At the heart of its infrastructure are the DLT-based smart-contracts. Music could be published in the registry with a unique identifier and timestamp to make further changes impossible, reducing the fraudsters’ options to zero. Moreover, each audio recording can store metadata about the owner and copyrights so that everyone can see and check it.

Finally, another advantage of the register in the blockchain is the simplification of the relationship between creators and consumers. Composers and artists will no longer need to purchase platforms and attract brokers, who often take a large part of their earnings. Musicians will be able to receive compensation directly from each download. With many young talents, it is beneficial to amateur musicians who do not support major record labels. Thus, the fee for the use of the content will be received by its creator only. No more intermediaries that get the largest share of profits all by themselves!

There is an evident demand for such solutions. For example, Audius (AUDIO) project has received increasing attention for its approach to decentralizing the music industry, and in early March 2021, the team celebrated reaching 3 million monthly active users. The platform is aimed to reshape the music streaming sector with its streaming protocol that facilitates transactions between creators and listeners, making it relatively effortless for users to distribute and monetize audio content. There are more platforms that are making advances in this direction, creating a positive trend for others to follow.

DeFi-ing the future of the music industry

Will the new class of services become a magic pill or a silver bullet for the industry? There is no doubt that new advancements can bring a distinctly positive flavor into the industry.

By 2021, a new highly-promising direction finally gained recognition. Decentralized Finance, or DeFi, is becoming a layer of new alternative financial systems. More emerging investment opportunities are opened while the field exploded and is aimed to reach an astonishing $100 billion milestone in Spring 2021. While giving back the control into the creative class’s hands, the emerging DeFi capabilities make real what was not possible before and by harnessing the power of decentralized protocols, investors can gain substantial yields. That can spice things up!

The amount of cryptocurrency DeFi protocols is hard to count, but risks also tend to multiply along with emerging opportunities. There is no doubt that the DeFi area will experience further growth and the product feed will be shaped to offer more robust solutions. One way or another, blockchain-based instruments will surely help to build a new, better foundation for the future of the music industry.

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Krypto Walker

Krypto Walker

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