Blockchain is capable of transforming the music industry and make it singer- and author-friendly, but this is going to be no easy journey, say Middlesex University researchers.
Generally, blockchain is able to solve a range of problems the industry has to face nowadays. One of them is the problem of copyright. Presently there is no single register with the information about the authorship of every musical piece in the world, but the blockchain technology is able to do it. An attempt to create the Global Repertoire Database with conventional technologies collapsed in 2014, remind the authors of the report “Music on the Blockchain”.
But there might be certain shortcomings, such as, for example, determining who exactly can put the information regarding this or that track on the blockchain. Disputes cannot be avoided here. Besides, in this industry musicians does not always know whether they have recorded the final mix or it will be revamped later. Meanwhile, the blockchain does not accept changes. It is also worth remembering that putting each track on the blockchain is likely to become an additional burden for music managers and thus the trend may be accepted with reluctance in the industry.
One more (closely related) issue is the question of royalties. Blockchain is able to provide instantaneous micropayments with each download, to be distributed among copyright owners through smart contracts. For instance, Benji Rogers, founder of the Dot Blockchain Music project, is developing a technology that makes it possible to add information about authors to WAV and MP3 files. Moreover, Mycelia founder Imogen Heap adds to it such information as key, tempo, lyrics, instruments used and the circumstances in which the song was created.
This is how the industry can become more transparent. Nowadays, it is sometimes difficult to know for sure how much a singer (or an author) has gained because details of streaming deals are often kept in secret. Blockchain offers an alternative. But the transparency of blockchain has its drawbacks. This is relevant for both large labels that do not want to disclose commercially sensitive information and musicians who would like to keep their incomes away from the public eye.
Just like in other fintech fields, blockchain in music could help crowdfunding and “musical accelerators”. As the system gets more transparent, users will more likely invest in emerging singers to profit from their success.
However, the blockchain technology did not become so widespread to be “invisible”, while this remains one of the primary conditions of its success in the industry of music. Nobody would download an audio if they have to type in a long blockchain key to get it.
Even if the idea finds its success, there will never be one permissionless bitcoin-like blockchain in the music industry. Most likely, there will be many blockchains, some of them permissioned, preferred by large corporations. It would be an exaggeration to say that the introduction of the technology will lead to the demise of large labels. Intermediaries will stay: they will switch to resolving disputes and checking data. Still, they will get less, and the balance will change in favour of the author and the musicians.
Andrew Levich
