Blockchain in music industry might seem like something that has no relevance. However, like any other industry, Blockchain has been able to penetrate the music industry in ways no one really imagined. Blockchain’s architecture allows manifold applications and the music industry has long been craving for a technology where it can combat piracy issues.
The Music Industry and Piracy:
While on one end, the Music industry has benefited immensely from technology. Factors such as reach, access, and better recording techniques have given it new ways to reach out to audiences all over the world. However, one major setback the industry suffered was unlike anything else it had witnessed before. Piracy is one of the biggest problems the music industry faces and any optimal solution hasn’t been on the table for decades. According to an estimate, the music industry faces a loss in billions of dollars due to piracy.
Music Piracy can simply be explained as, the act of copying and distribution of music recordings for which the rights owner hasn’t consented. The rights owners usually constitute of the artists involved, composers, or a record label. Independent artists are usually the ones who face the biggest loss as they’re unable to make money out of their limited resources.
Blockchain in Music Industry:
If the music industry is able to combat piracy, then there can be a lot of benefits within the community. Economically, it can encourage people to not just join the music industry as musicians but also in several other fields. Blockchain in music industry can reshape the entire economic structure, here’s how it can put a stop to piracy:
Blockchain technology is centered around a distributed ledger. The ledger is decentralized and records all kinds of transactions that are taking place. Using this technology, Blockchain can be used to create a proper channel where copyrights are maintained and if needed traced. Theoretically, this can be used as evidence in a court of law if your music is being used in a commercial capacity by a third party. Copyright claims can hence easily be negated with the help of Blockchain technology.
It can further enable music rights owners to get paid when someone wants to use their music in a professional capacity. For example, film studios often need music tracks and Blockchain can ensure the copyright process remains intact and you’re actually paid for your music.
Smart contracts are another application of Blockchain technology. In essence, a smart contract is an agreement that is very secured and hard to be manipulated. The popularity of smart contracts is unprecedented in the financial sector because it provides a secure way of doing business. The music industry can benefit from smart contracts especially when a musician signs up with a record label.
Fair Payments made to Artists:
One of the biggest issues in the music industry is that artists have no idea how much their music has been used illegally. There are musicians out there that have no idea whatsoever how many times their music has been illegally downloaded. This naturally brings up the question that these artists aren’t being paid what they deserve. With Blockchain in Music Industry, this problem can easily be avoided as transparency for payments can easily be achieved. Furthermore, with smart contracts and Blockchain’s distribution ledger you can easily track music that is being used anywhere in a specific country.
Can Blockchain in Music Industry bring a Revolution?
Like any other industry, the Music industry will sooner or later come under Blockchain’s radar. We can’t really predict the future but we know one thing for sure that artists will be able to make money a lot more as compared to now. The entire economic structure of the Music industry will be changed if Blockchain comes into play and we certainly believe that now is the right time to bring it in.