Today’s musicians hit road block after roadblock to achieving success – streaming, pirating, delayed royalty payments, and copyright snags are just a few. However, ArcticStartUp says this might change – there might be two new ways that blockchain solutions can make the music industry fairer to creators and artists.
One way is through storing information about copyright. ArcticStartUp calls the original way through which music was copyrighted “a complex structure” that included a “complicated array of publishing and recording agreements and other licenses.” Instead, blockchain technology might now be able to make the copyright workflow more efficient, especially through “keeping a comprehensive database of music copyright ownership containing up-to-date information that can be accessed by anyone interested in it.”
The second way blockchain technology can help the musicians is through creating the possibility of micropayments, ArcticStartUp reports. Based on how the music business works now, and with the addition of complications through current copyright processes, it can take years for artists to receive royalties for their work. However, ArcticStartUp says that blockchain smart contracts could be utilized to make automatic payments into an artist’s bank account once specific conditions are met (royalty amount, how the music can be used, etc.). As a result, “the problem of adequate compensation for artists and rights holders could thus be solved with instant micro-payments,” which include cryptocurrencies like Bitcoin and Ether.
What this means for decision makers:
While ArcticStartUp only covers the music industry, blockchain technologies might give other industries a boost, including those that include copyright processes, distribution and royalties, like publishing. Most importantly, however, ArcticStartUp seems to suggest that these technologies will create a chain of benefits for all those businesses involved in the process: they will keep artists, and the companies who make money off of their art, satisfied and employed. When the artists are paid, they keep working and producing more art, keeping fans – paying customers – happy and spending money.