In a variety of ways, blockchain technology has the potential to profoundly alter and change the music business and artist compensation.
Here are some of the primary ways blockchain is projected to influence the music industry, as well as some of the patterns and causes behind these impacts:
Copyright Management using a blockchain in the music industry
A Blockchain system could monitor ownership and licensing of music copyrights, making royalty payments to artists and rights holders more efficient and transparent.
The rising complexity of the music business, with a high number of parties and rights holders engaged in the creation and distribution of music, is one of the primary themes pushing the use of blockchain in copyright management. Companies may decrease the risk of errors and conflicts while increasing the efficiency and transparency of their operations by utilizing blockchain to track copyrights and royalty payments.
Digital music rights management
Blockchain technology can track and regulate the distribution of digital music files, ensuring that artists and rights holders are reimbursed appropriately for the use of their work. With the growing popularity of streaming services and the transition away from conventional music consumption methods, companies can ensure that artists and rights holders are adequately rewarded for the use of their work by utilizing blockchain to track the usage of digital music files, even in the context of complicated and frequently changing business models.
Ticketing for concerts or music events using blockchain tech
Blockchain tech could track and control concert ticket distribution, reducing the risk of fraud and counterfeit tickets. The expanding usage of digital technology in the music business, as well as the growing problem of fraudulent and counterfeit tickets, are two significant themes pushing the use of blockchain in ticketing. Companies may boost the security and transparency of their operations while reducing the risk of fakes and ticket reselling by utilizing blockchain to track and control the distribution of tickets.
Fan engagement
Tracking and managing the interactions between artists and fans, allowing for more personalized and targeted marketing and engagement strategies, could be an application of blockchain tech. One of the key trends driving the adoption of blockchain in fan engagement is the increasing importance of social media and other digital platforms in the music industry. By using blockchain to track and analyse the interactions between artists and fans, companies can gain a better understanding of their audience and develop more effective marketing and engagement strategies.
Music and song NFTs
Artists and labels can start minting whole songs or very popular parts of a song, album covers and more as NTFs and sell those. Secondary markets can then be used to trade those NFTs, and they could change in value. Artists could be compensated for each NFT sale and all successive re-sales.
Summary
Overall, blockchain implementation in the music business has the potential to enhance efficiency, save costs, and promote transparency and confidence among all stakeholders, and especially the fans. As the sector becomes more digitized and linked, we can expect to see an increase in the use of blockchain and other digital technologies to enhance operations and security.