Content: Blockchain Music Use Cases
- Music Certificate of Origin
- Verified Global Music Registry
- Royalty Payments
- Fans Collaboration
- Revenue Management
Music Certificate of Origin
Blockchain will change the music industry and with it the record keeping. Where a lot of systems have failed, blockchain may succeed. So behind every song, there are songwriters, performers, producers, sound engineers and other people that contribute to its creation. But it is often difficult to determine exactly who has contributed what part to the music.
With blockchain, we can finally create a high-quality music certificate of origin. So for the first time, we can follow every single step in the production of a piece of music. From the first word to the finished song everything will be traceable. Thus, this can be a way to identify the work and correctly pay these people.
Verified Global Music Registry
So one of the biggest problems in the music industry right now is that there’s no verified global registry of music creatives and their works. All attempts to build one have failed. As a result, they have wasted millions of dollars over the years. Thus, this has become a real issue. So, a new dynamic music file format is designed to modernize the rights management of media globally. The idea behind this new media format is to include all data required to identify the owner, payment rights and other information attached to the media. Once the file is created, it is introduced to the blockchain network and available for everyone.
It aims to provide the format and architecture to all musicians, composers, and people in the music industry and its related fields through an open source protocol. As a result, we can drastically improve the global music right management.
The term smart contract refers to blockchain contracts with automatically executable conditional terms, such as payments and asset transfers. We can use this feature in the music industry to support artists with automatic payments. When a consumer downloads, streams or uses music on the Blockchain, the amount paid does not go through third parties. Instead, all the information needed to forward the payment to each shareholder will be located within the chain and executed as specified in the agreement.
So not only all the contributors of the song will receive their part immediately after the song is licensed. But also all the information generated with the transaction will be available for data visualization and analysis techniques. Thus, some platforms already use cryptocurrency as a payment method. Also, there are already songs that have automatically distribute payments via a smart contract to all involved in the making and recording of the song.
So the information generated by the transactions and made available through blockchain, can not only increase the level of transparency of the process. It can also allow artists and other users to create new business models from them. For example, by using data mining techniques, artists may have access to geographic, demographic data and purchase preferences of the users.
Fans could collaborate with artists suggesting new additions or simply promote them with the suggestion. If an artist uses the suggestion, the fan gets automatically paid through Smart Conctracts. You can also try to include fans in the process of creating, recording and using music. You can also offer short-run exclusive products that can include guitars used in concerts, backstage passes or autographed CD. So with blockchain, companies could increase the value captured by the artists and allow them to get more familiar with their fan community, increasing also the value perceived by the consumers.
Other industries are already well known for the use of flexible rates. Especially those in which goods are of not-stockable nature, such as tourism. So plane tickets are changeable and usually cheaper depending on the time and weekday of the flight. While music is also a non-stockable, price changes are not common. So changes in the prices of music are also possible and can result in an increase in the value captured by the artists. Thus, a song can change its price depending on the time of the day, streams per person, the total number of downloads, and even region of the consumer.
For example, if it is identified that a specific tune is more played in a certain time frame of the day, it can cost a little more during that time and a little less in other periods. So this move would allow price-sensitive consumers to try the product at cheaper times and less sensitive to continue streaming in a higher demanding period.
Also, fans that stream the same song for a given number of times could have discounts. They could pay less or do not pay at all after a certain amount of times listen to a song. So this particular change can create a sense of loyalty and even a concept of “super-fans”. Some companies are already applying the automatic dynamic pricing concept in other industries. As a result, Blockchain can bring more liberty to artists and other stakeholders to create innovative business models.
Conclusion: Blockchain Music Use Cases
It is undeniable that blockchain technology can bring innovative business models to the music industry. So we can expect that new enterprises start to develop Apps using Blockchain and increasing the total amount of usage for artists and consumers. Also, the involvement of mainstream and independent artists in this process may be a great contribution to the distribution of blockchain in the music industry.