The music industry has a long history of centralization of revenues. As a distributed ledger, the blockchain enables transparency over copyrights and payout management. With innovative blockchain based platforms emerging lately, there's now a turning point in the music business.
Decentralization matters for the music industry
Monetization and decentralization work in pair. Today, the explosion of streaming services drives the growth of the music business. In 2018, around 176 million people stream music online. In the meantime, global streaming revenues account for 46 percent of the global music industry last year. But three major record labels dominate the industry, Universal, Warmer, and Sony, and centralize revenues.
Although dynamic, the music industry faces many challenges today. What musicians earn from streaming can't pay the bills. For fans, there's not even any incentive in listening to music. Keeping track of royalties management and protecting music from being illegally downloaded also remains difficult. Blockchain technology could address most of these issues. The technology could further help fans and musicians to reap better benefits, by redesigning the revenue model in the music business.
Blockchain music business startups at the forefront of the revolution
Inmusik proposes a new streaming experience that rewards both playlist makers and content creators. Each time contributors perform an action on the platform - voting for music, creating a playlist, uploading new music, and such - they receive SOUND tokens, Inmusik's own cryptocurrency. Shifting away from traditional music services currently ripping off both artists and fans, Inmusik rethinks digital music distribution, discovery, and consumption.
Musicoin is another next-generation, blockchain based streaming service. The platform, built on Ethereum, provides an embeddable music player which lets artists receive tokens each time their song is played. With these micropayments, musicians can increase their revenues compared to traditional streaming services. Musicoin supports music consumption and distribution in a shared economy with a 100 percent free streaming service.
Similar to Steemit, Imusify is building a scalable technology framework for artists, music lovers, and entrepreneurs to use the platform to connect with the #imusify community. The free, decentralized platform allows artists to creatively collaborate on music related content such as audio, video, apps, images and blogging in the Inmusify ecosystem. Everyone can join Imusify to contribute and get paid in $IMU.
Choon is another blockchain-based music venture that offers music lovers incentives for curating playlists. Similar to Inmusik, on Choon music creators allow content curators to receive a percentage of the songs played in a stream. Musicians can let fans earn royalty percentages from the songs they love. As a result, listeners are encouraged to discover more music.
These revolutionary music blockchain projects have the potential to kill traditional global streaming platforms today. Both content creators and curators get incentives to work together. There's no need for a central authority to control revenues anymore. All parties involved in the music industry can receive the right rewards for the contribution they make in the music ecosystem. These community-driven platforms above creating new patterns for the consumption, discovery, and distribution of digital music.
Image from Pixabay.