Blockchain Solutions: Royalties and the New Payola
I have been working in audio for the last 15 years. The dreams of lavish careers which existed during the formational years which inspired my pursuits are quickly evaporating, and the musician as we know it has to evolve to stay afloat…
As the adoption of using digital platforms for music distribution increases, profitability in the traditional avenues of the industry has nearly bottomed. Artists have shifted from earning their incomes off the music they have created over to merchandise and touring returns. Less and less money is made from the songs themselves.
Are we seeing a new digital era where the music, the actual “proof of work” of an artist, is becoming completely worthless?
Not quite…
Creative content might be the most valuable asset that authors own; the issue lies in the monetization of the content.
Record labels and radio stations used to be the gate-keepers of the successful side of the industry via Payola; this has now been replaced by newer digital options which are no better.
Things have been changing within the existing infrastructure, and adoption of digital platforms have achieved dominance. Physical copies-sales (CDs and vinyl) continue to decline, and streaming services like Pandora and Spotify allow independent artists to garner most of their exposure to their fans.
These streaming services provide independent and unsigned artists with better access and distribution, yet are pennies to the dollar in earned royalties. In reality, they are no better at monetizing the asset, which is the task the platform seeks to achieve. Many artists are shocked at the pittance paid for substantial streams and plays on these platforms.
Options like Youtube censor users and de-monetize them based upon an ever changing “rule book” controlled by a few. They rarely act in the favor of smaller artists, and in fact not in accordance to copyright law.
“Blockers” are known on Youtube to do exactly this. Established artists with acclaim and influence strongarm Youtube to demonetize certain channels in copyright conflict claims, wherein only a mechanical license is required to use the content, which pays a small predetermined fee to the original artist.
Is the industry doomed?
Blockchain has enabled decentralization to occur with verifiable consensus. While a mouthful, these two properties can be applied to remedy many issues in data communication. In the case of audio, platforms can be created which fairly distribute royalties in favor of the content creator.
One option is Audius; they started years back and offer a platform for creators to earn royalties on audio content via blockchain. The platform is functional, and they have even gained the support of large artists like deadmau5. While some artists have been profitable on the platform (possibly because of dumping prelaunch coins, launch- price is a fraction of opening cost), usage and adoption is not substantial enough to uproot a revolution in the industry, nor to pay most artists a livable wage.
At least not yet…
We need developers in the space to create options. The world is dying for blockchain solutions, and the audio/creative content sector can benefit greatly. While the potential of better systems have been realized, they have yet to actualize. Ideas will transform as we discover what works, but we need to build the tools we want to use…
We then need adoption! If solutions are truly better, a migration is inevitable, so education and participation is key to building viable solutions. Content creators need to educate themselves on how to take ownership of things that by law they should be entitled to.
No more having to use Youtube and Patreon to earn your rightful royalties…
