When Will the Music Industry Embrace Blockchain Technology?

The Music industry is now at a crossroads where it needs to decide how to adapt and adjust to continue the tradition of delivering content via new methods. The below-mentioned portion explores the increasing demand for transparency on content ownership in the music industry and how blockchain technology can help provide that transparency. You can check more about the coin and the investment option by checking this website. We’ll also discuss what’s currently holding the industry back from embracing blockchain technology, as well as the limitations of this type of adaptation.

The Music Industry’s Complex Content Management:

The music industry is a multifaceted sector with diverse and far-reaching content management. The value creation process occurs in all regions of the world, with creative input coming from equally diverse people. 

At times, the industry is viewed as a single market, but in reality, there are numerous different markets, each with its local characteristics and cultural nuances. Some segments of the distribution value chain have maintained their monopoly status; others are experiencing increasing competition. It creates the excellent potential for upheaval and consolidation in the coming years. 

The music industry has a complex and highly fragmented content management system that is difficult to manage and prevents piracy and counterfeit products from being sold. 

Further, all these assets are protected by powerful access control mechanisms; there are no standard file formats or document formats to use. Instead, the workflows are based on non-standard technologies such as Office 365, Dropbox and Salesforce CRM.

The issue of content piracy is also very complicated in this industry. But blockchain technology can provide solutions to these problems.

Blockchain Technology Provides Anonymity and Transparency

Under the current context, authentication is impossible to prevent on platforms such as iTunes, Spotify and Apple Music. So, without blockchain technology, there is no way to guarantee the authenticity of purchased assets or personal data for content creators. In addition, the blockchain does not allow for certain anonymous transactions, thus providing much-needed transparency in this sector.  With this kind of transparency, artists and labels can control asset lifecycle management much more quickly and efficiently.

The Times They Are a-changin’

Not only has the music industry witnessed a significant degree of consolidation in recent years, but it has also seen a shift in power where the key players are no more extended record companies but technology companies such as Apple, Google and Facebook. None of these big tech firms can survive without relying on content creators’ intellectual properties. 

But these firms haven’t been able to provide vital protection capabilities for content creators on their platforms. As a result, music creators and the labels they work with are losing out on revenue in this new landscape.

At the same time, blockchain technology has shown potential for solutions to many pressing problems the music industry faces today. For example, people can use blockchain technology to manage and solve issues such as copyright protection and royalty/payment disbursements more efficiently than was previously achieved through traditional measures. In addition, intelligent contracts enable payments based on pre-defined rules, thus eliminating the risk of human error or manipulation from the equation.

For instance, a smart contract can be programmed to distribute royalties and revenues by the singer’s/artist’s contribution to a song. Whereas the current model is based on the terms of the record label or publisher the artist is contracted with. The smart contract will follow specific guidelines agreed upon by all parties involved and executed by code. As a result, it leads to a more efficient payment distribution process and transparency on both sides of the deal.

As stated before, many companies in this industry have already adopted blockchain technology for various projects ranging from content management systems to music creation platforms. For example, Ujo Music uses blockchain technology for digital rights management and royalty payment tracking. In addition, songwriter Taylor Swift partnered with music streaming sites such as Spotify to use blockchain technology for royalty payments. This all points to the fact that the music industry is changing. And blockchain technology will lead the next generation of a change in this industry.

The Roadblock is the Lack of Adoption

The biggest hurdle holding back the widespread adoption of blockchain technology has been a lack of understanding on the part of content creators and labels regarding its functionality. For example, the labels and artists who have begun to adopt blockchain technology have done so without knowing exactly why they are doing it and what it can do for them. 

There must be a strong understanding of blockchain technology before music creators and labels begin to implement it. Any solutions that are developed will directly benefit all parties involved. Labels rely on the artists they work with for their brand value, but these brands often suffer damage when their albums show up on pirate sites due to digital rights management issues.