Roughly forty-percent of our music consumption is streamed from platforms like Spotify or Soundcloud. However, aside from artists on the “Top 40” playlists and those that are well-established in fame, smaller artists struggle to receive substantial compensation from these streaming services.
Each time we stream a song, the artist will earn roughly four-tenths of a penny. Those lesser known artists we want to support aren’t getting the credit they deserve. Heck, we’re basically streaming them into poverty!
Musicians, especially new artists, already have it tough making it in the industry. But, we have the technology to change that. Blockchain technology is here and ready to innovate the music industry. Imagine the application like this: A bunch of solo musicians are playing out of self-interest, trying to make it in the industry, but when then come together as a band, they produce music that benefits everyone. The music produced being a trusted, immutable record not managed by a central authority (i.e cutting out intermediaries like label and publishers). Doing so gives artists the compensation they deserve rather than losing money to these intermediaries.
Yes, using blockchain can help musicians, for example, giving them up to eighty percent more in compensation per stream. However, the fans, who love and support these artists, benefit immensely. Not only will we feel great about our favorite rising artists getting paid fairly for their creations, but artists can then focus on creating more groovy jams instead of being burdened by labels and publishers. The list goes on:
Inexpensive Content:
Since we’re becoming more accustomed to “digital” business models, we want to consume “pay-per” use content. Younger consumers, especially, would rather pay a couple of cents for a single song than being charged a flat monthly subscription fee in order to avoid ads. Yet, an increase in transactions is costly when using current billing systems. These costs make it difficult for companies to competitively sell low-price items or bundles with profit gained. Micro-payments using blockchain technology can help make it possible for companies to sell individual pieces of content without absurd transaction fees.
Cryptocurrencies like Bitcoin or Ether allow transactions worth a fraction of a cent. The use of blockchain will allow penny-priced content like a single song to be purchased. As a result, this technology will make the monetization of bite-sized content a lot easier and more fluid for the music industry by creating new pricing models. This way you can not only avoid ads, but as well as pay a lower price.
Direct interaction with Artist:
The elimination of third parties lets listeners interact with artists more. We all love it when artists follow us on Twitter, or are personal on their Instagram stories. With blockchain, there will be even more of that connection, but the intimacy will be directly related to their music. For example, the transparency of blockchain lets artist track how many times their music has been streamed and where. So, your support and love for the artist is not only embedded in the blockchain, but also will be acknowledged. In this way, the support is not only coming from fair compensation, but also validation from fans like yourself — a huge factor in the music world. And the Artist actually knows who you are!
Global Access and Sharing:
A problem that is relatable to many listeners, who are subscribed to music platforms like Spotify, is not being able to access the content they subscribed to if it is not available in another country or region when they are traveling. This classic scenario of a frustrated user is reasonable since content licenses vary by country and their regulations, so the licensor will prohibit access from another country/region. Also, Digital Rights Management systems vary by country which does not allow users to access their subscriptions and packages in other countries.
Blockchain has the ability to get rid of or at least lessen the complexity for the Digital Rights Marketing systems. Each transaction and consumption of content can be tracked in the blockchain and linked to the user. With the use of smart contracts, payment can be automatically done based on the terms of the contracts for various content.
The self-executing smart contracts used for the various country’s rights and fluid subscription models will improve the overall music experience when going to different countries.
Additionally, with this technology fans are able to not only own their music but also have access to music globally. Even if you share the music you own with a friend, that person will be charged directly with the contents fee.
So, where can you find a platform that uses this?
Ujo is a music ecosystem built on ethereum blockchain and decentralized technology for every kind of user. It will be a place where musicians and fans can unite to revolutionize the future of music streaming and listening. An experience we want to give to you which simply includes the artist, their listeners, and most importantly, the music.
