Blockchain offers an opportunity to rethink a new business model for all of entertainment, including the music industry
While blockchain technology isn’t yet gaining widespread adoption, it’s poised to disrupt a variety of industries, including the entertainment industry. In the music and entertainment industry, major labels have increasingly monopolized the content, and artists are looking for new options to monetize their works. Streaming services, for example, have become a thorn in the side of independent creators, who struggle to pitch their ideas to investors and gain a foothold in the industry.
A nonprofit called Open Music Initiative is exploring the use of blockchain in the music industry. The group believes that blockchain can increase transparency and deepen data insights, while helping artists and producers get paid fairly. It is also working with vip roll companies such as Soundcloud and Red Bull Media to develop an open-source protocol for the music industry.
Recorded music revenues have held up relatively well during the COVID-19 pandemic
Despite the global COVID-19 pandemic, recorded music revenues have been holding up relatively well. The “Majors,” which include Warner Music Group and Universal Music Group, have increased their share of the music market in recent years. These companies have seen an increase in streaming revenues that more than offset the decline in CD sales over the last 15 years. Despite the decline, music revenue has been nearing or surpassing its 1999 peak of $14.6 billion.
The impact on music has been less pronounced than many had expected. Though there have been a few disruptions to streaming services, the overall growth of music consumption is expected to increase in 2020. This is good news for the music industry, as it will boost underlying trends in the sector.