The streaming business could be impacted by blockchain technology, which has the potential to affect not only businesses but whole business models. There are a few potential ways that blockchain might affect Spotify’s business operations as a music streaming service.
Automated royalty payments using blockchain records
Making sure artists receive appropriate compensation for their work is one of the key problems the music streaming industry must deal with. A more transparent and effective method for tracking and paying artist royalties might be made using blockchain technology. Smart contracts might be used, for instance, to automatically compensate musicians according to the number of streams their songs receive. The ownership and management of musical works might likewise be managed and tracked using blockchain technology. This would make it simpler for Spotify and other music streaming services to confirm that they have the right to play specific songs, and it might also make it simpler for musicians to monitor how their music is being used.
Blockchain based digital rights management in the music business
A decentralized, open system for tracking the ownership and use of music copyright is one way, blockchain can disrupt the music business.
Currently, copyright for music can be complicated and challenging to track, especially with the rise of digital music. A decentralized and transparent database of music copyright ownership can make it simpler for musicians to receive compensation for their work, as well as for listeners and content creators to legally licence and pay for the music they listen to and use.
A decentralized “Spotify” on a blockchain?
The development of a decentralized platform for music distribution is another potential application for blockchain in the music sector. Currently, a few number of major corporations manage music distribution, which can make it challenging for independent musicians to get their music heard. A decentralized infrastructure for music distribution that is more open and available to a wider class of musicians might make music distribution more democratic and take away the powers from players like Spotify or Apple Music. Do you think there will be a platform in the future that will challenge Spotify?
It is definitely interesting to see how blockchain technology might impact companies like Spotify and maybe even challenge their existing business model. The question that remains is, whether the players in the market now will have the ability to adapt or will face the same fate as the CD or cassettes.
Also learn more how blockchain technology will impact the music industry in general.