Young musicians must juggle the many layers of production, distribution, and promotion opportunities. Please check pros and cons of investing in etereum that will assist traders in their bitcoin journey with the best trading tools, fast payouts, and phenomenal customer support. Musicians must negotiate with labels, publishers, and other intermediaries to make their music available.
With Ethereum, a musician could use intelligent contracts software that acts as a cryptographic middleman between them and those who want to purchase their music. An Ethereum-based platform could simplify this immensely for musicians – they can spend less time negotiating terms (as the contract will cover all of these) and more time making music.
The music industry has yet to see the disruption that Bitcoin and Ethereum can bring to the supply chain ecosystem. But, if musicians can embrace decentralized applications, new business models, and rewards systems, musicians can be freed by users from the drudgery of record label bureaucracy.
Experts believe that Ethereum will disrupt micro-payments and cryptocurrency because it makes transactions cost-free (with enough volume). For an artist, it is possible to take an average micro-payment fee on top of their royalty which they receive each time someone streams their song on any platform (iTunes, Spotify, etc.).
People will then use the smart contract to allow a seamless process of purchase, distribution, and delivery of the music. Smart contracts are coded using solidity language and can be built in line with different scenarios, which makes them suitable for implementation in other industries. The music industry is highly complex, and we require sophisticated solutions ready to scale with no issues regarding user adoption. Let’s discuss how Ethereum can disrupt the music industry.
How could Ethereum-based technologies be used in the music industry?
Digital rights database:
In this case, a digital rights database contains information about who owns the copyright of music, lyrics, or any other media asset. Blockchain technology will ensure that music rights are not tied to single industry players. Instead, it will be possible to store and transfer rights through decentralized channels, making it easy for artists and consumers to gain access.
The shift from centralized to decentralized data storage is difficult, but it makes sense when the objective is to create an open and efficient network where data is stored on public nodes. In addition, by adopting Ethereum technology for digital rights distribution, we can eliminate intermediaries such as Apple Music or Spotify, which charge enormous rates for promoting artists and their music on their platforms.
Automating payments of royalties:
Today, artists must negotiate with their labels, publishers, and intermediaries. Blockchain technology will simplify this process by automating royalty payments. For example, an artist could automate payment of royalties to anyone who contributes to their song in any way.
In this case, smart contracts will enable the same process at scale across multiple parties. Users could use a single agreement to distribute music on iTunes and other platforms without needing a central authority or numerous copies of the contract. In addition, smart contracts will ensure that everyone’s payment is distributed securely.
Today, getting free music through internet radio or downloading a free app on your smartphone is possible. Blockchain technology will allow artists to offer their music this way – but the value will be distributed. Blockchain platforms take the financial details of users and allow them to create digital wallets on their platforms.
By subscribing to these decentralized applications, users can pay for streaming songs directly with no need for go-betweens or centralized efforts such as Spotify and Apple Music. Here, developers can experiment with different monetization models for music, such as pay-per-stream, free streaming with ads, or free streaming with membership. Artists can set these conditions in the application’s code using cryptocurrencies and smart contracts.
Today, the music industry is highly controlled by a few centralized platforms such as Spotify and Apple, which charge hefty percentages on artists’ revenue, making it hard for them to make profits. By adopting Ethereum based-platforms, artists could diversify their distribution channels and create new opportunities to earn money by selling directly to consumers through various methods without any hassles of intermediary parties.
Total transparency and data protection:
Users in a decentralized database can store music rights information. Blockchain technology will make it possible to ensure that this data is kept up-to-date, secure, and transparent. Audiences can be offered direct access to royalty payments and earn tokens as a reward for their support. It is also possible to conduct live music events on the blockchain via smart contracts – but these are not the only use cases for Ethereum.
With smart contracts, various scenarios are achievable, such as crowdfunding and issuing licenses which makes them suitable for multiple industries as they do not require any discontinuous changes when it comes time to implement them.