It is unsurprising that the growth of the decentralized economy is encouraging more musicians to turn towards the blockchain. NFTs, DAOs, Metaverse events, and other platforms are converting artistic visions into fresh, immersive experiences. Decentralized music streaming platforms will soon make up a portion of the music business environment.
These platforms, which are community-driven rather than centrally controlled like Spotify and YouTube, provide artists more flexibility to express themselves while providing built-in legal infrastructure assistance. But how will musicians fare in this decentralized streaming future?
More Rights for Musicians
In the Web3 World, artists will have greater control over their work. Decentralized streaming music means there will be fewer intermediaries taking a chunk of an artist’s earning pie. Artists releasing music through blockchain will hold 100% of their IP (Intellectual Property).
Decentralization is really about leveraging smart contracts to develop the platforms, resources, tools, and legal frameworks necessary for art to flourish organically.
One of the goals for proponents of decentralized music streaming is to create a world where fans can purchase and trade music through NFTs, thereby creating long-term revenue for their favorite artists.
With on-chain streaming, artists will be paid on the basis of actual streams and listeners, instead of the current Spotify model where royalty payments are determined based on the way an artist’s music is streamed or their contract with the distributors or labels.
Greater Royalty Transparency
Another major issue that decentralized music could tackle is that of royalty transparency.
Transparency is a major issue that musicians and other content creators face as far as royalty payouts are concerned. The digital era has made it significantly harder for labels, managers, and artists to track every purchase and stream.
With smart contracts, though, musicians will be able to track every transaction in an immutable and transparent format. This will encourage the flow of money back to the content creators and producers.
Remix royalties will be treated similarly. When a musician takes on a remix, it produces a different sound, perspective, and audience than the original track. Remix artists tend to get a flat fee, and only occasionally do they receive royalty payments. The more hands that original content goes through, the likelier it is to be consumed by larger audiences. But then that makes it really hard to track royalties. By simplifying royalty payments, smart contracts could help change this.
Having network data that cannot be manipulated and is universally accessible can be immensely helpful in keeping viral and exponential pathways clear and unblocked with respect to ensuring that the original content creators get their fair share of the revenue.
Web3 music is all about innovation, experimentation, and pushing the envelope. Additionally, it involves pursuing long-term goals and consistently generating the necessary foundation to get there.
Decentralized music sharing can provide musicians with incredibly quick, inexpensive, and secure ways to reach where they deserve to be.
Blockchain technology enables an ecosystem in which stakeholders can cooperate properly and lay out their rules. All participants are welcome in this area, including artists, record companies, fans, purchasers, and secondary buyers.