Musicians are turning their attention to the power of blockchain as a way of generating more revenue in an industry that is experiencing a decline in shares.
According to the British Phonographic Industry (BPI), 2015 saw music sales rise by 3.7% driven by the fact that streaming grew by a massive 82%; however, despite this, revenue increases only grew by a tiny 0.6%.
Unsurprisingly, the music industry is keen to shake things up ensuring that musicians receive the money they are entitled to for music sales.
What, though, could help to revolutionize the music industry? Enter blockchain.
Since entering the scene, blockchain technology was primarily associated with the world of cryptocurrency. Today, though, it is being utilized within the banking sector and the music world is taking notice and thinking of ways to harness distributed ledger technology.
Among them is Grammy Award-winning U.K. singer, songwriter, and producer, Imogen Heap, who told City AM:
Blockchain is completely enabling us to rethink the basic, core structure of how monetary distribution works in the industry. It can be used to build a united platform and create an ecosystem, but most importantly builds innovation under the standards that make sense for artists.
Research unveiled by the Blockchain for Creative Industries at Middlesex University and the Featured Artists’ Coalition (FAC) identified four main areas where distributed ledger technology could prove significant; namely, ensuring quick royalty payments, producing a networked database of copyright information, better transparency, and access to different sources of revenue.
Last October, Heap released her song Tiny Human on a smart contract on Ujo Music, which is on the blockchain and run by Ethereum.
Heap added that she sees blockchain as the ideal platform where important information about her song can be stored.
I could release information about the moment I wrote it, where I wrote it, what gear I used, who has covered it, [and] who else worked on it.
Of course, while there is growing interest in using blockchain within the music industry, it’s not expected to be implemented for several years.