Blockchain plays a prominent role in revamping the music industry by fixing pain points like piracy, dealing with intermediaries for licensing, and overcoming payment disputes.
We are now going to unleash the harsh truth about the music industry. While you might not believe it, the music industry is in trouble. The industry faces numerous hard-to-resolve challenges and burning issues. Its first and the foremost challenge is piracy. Did you know that every year, there is a loss of more than 12.5 billion US dollars for the music industry due to piracy? Quite a large number, right? Music piracy eats up a lot of money that rightfully belongs to artists and record labels. Added to this, the artists are not given enough rewards for her work. The problem is, record labels keep a significant amount of money that comes from streaming platforms, thus not allowing artists to enjoy their rights. Basically, the music industry today lacks the correct ‘rights management approach’ and ‘transparency of selling music.’ Let’s stop here for now (however, the challenges are endless). What could be an appropriate solution for these problems? What if we tell you that the music industry can resolve all of these issues just by leveraging technology? Yes, you heard that right. Say hello to blockchain! This technology has the potential to not only revamp the music industry but also to solve almost all issues that the industry possesses. If you are thinking that the idea of leveraging blockchain is new to the industry, then you are wrong. Let us tell you that the peer-to-peer music network already had its existence in the music industry in the form of ‘digital music.’
Music fans never love to pay for music. And, this was the case 15 years back too. Hence, smart minds developed a music sharing service that did not require any money. Founded by Shawn Fanning and Sean Parker, Napster, a peer-to-peer audio sharing platform on the Internet, allowed music fans to download free music. Napster also allowed its users to share files with their friends. But, due to this free music service, the music industry had a fall in its revenue graph. Later, other similar music platforms were developed, but, these earned money either by adding ads or charging ‘monthly’ or ‘yearly’ subscription rates.
For quite some time now, blockchain has been creating a lot of buzz across the globe. Functionally, due to its decentralized record keeping feature, blockchain contains non-hackable and unmodifiable records secured by cryptography. Blockchain offers a promise of revamping the music industry by dealing with the following issues that are affecting the people within the industry.
Just like Imogen Heap leveraged blockchain for decentralizing her work so that she gets fair compensation, you can also decentralize your content, protect the copyright, get good revenues, and eliminate the frustrating mediators by capitalizing on blockchain.
Naveen is the Founder and CEO of Allerin, a software solutions provider that delivers innovative and agile solutions that enable to automate, inspire and impress. He is a seasoned professional with more than 20 years of experience, with extensive experience in customizing open source products for cost optimizations of large scale IT deployment. He is currently working on Internet of Things solutions with Big Data Analytics. Naveen completed his programming qualifications in various Indian institutes.