Artists, music fans and stakeholders associated with the Media industry will be wondering how blockchain, the technology behind the successful digital currency bitcoin, can revolutionize the music and media industry. The impact might seem hard to comprehend, but just like how the blockchain technology has augmented numerous other industries in cutting down all inefficiencies and increasing profits, it is expected that the music industry can gain a lot from it.
Blockchain technology has been dubbed as the Web 3.0 and there are no doubts that the future for the technology is indeed bright.
Does the Music Industry Need Blockchain?
The foremost question to be answered before blockchain is implemented in the music industry is whether the industry actually needs blockchain or not? While the digitization of the industry has been compared to democracy, the problems in this, 15.7 billion, global industry remain at large. The biggest problem plaguing the industry is that of piracy through copied, shared and illegally downloaded content that blatantly and rather brutally eats into the artist’s deserved royalties and revenue to be earned by the label.
Adding to the issues of privacy is the issue of a robust rights management system. The lack of such a system leads to huge losses for artists. Moreover, the revenue from a record solo or album can take up to two years to reach the artist. If these weren’t enough reasons to worry about, unpaid royalties have emerged as a reason of high concern. The royalties are suspended because of rights ownership or missing information.
Changes Envisioned Through Blockchain
The primary change that can be envisioned is the creation of a positive digital rights database. Digital rights are one of the major issues impeding revenues for labels and hurting the music industry. Identifying copyrights and then distributing the spoils between performers, songwriters, producers and publishers can often be the reason of many conflicts.
The complicated sphere of influence in the digital space means that artists often end up losing out on all royalties. The complicated copyright environment can be revolutionized through Blockchain’s immutable ledger system. The ledger system will ensure that the perfect solution is provided and that no single party claims ownership over content. Moreover all secure files with relevant information such as lyrics, composition, linear notes, licensing, cover at, etc, can be encoded on the blockchain by creating a permanent, inerasable record.
The use of Blockchain can also improve the payment of contacts. Smart contracts are an integral part of blockchain and can be used to facilitate payments of royalties at the earliest. The directions in the smart code would let the system efficiently manage the flow of proceeds to all parties involved, including the directors, artists, producers and engineers.
If the Blockchain system is implemented, there would be no need for intermediaries in the music industry. Blockchain would also ensure optimal efficiency and will provide a transparent system that delivers a fair share to all stakeholders involved.