Like other assets music too has gone digital from its earlier physical form. It is this transformation that is currently highlighted among the other changes across the market. In the words of Bruno Guez, CEO, Revelator, ‘this has changed everything.’ And by everything he meant – its creation, distribution, consumption and other related aspects.
Once the music has made its place as a digital asset, it is be used as a composable yield-bearing product. With this, the music fans have great expectations. They wish to support the creators behind these music productions, interact with their favorite’s singers and introductions to community with similar interests. They even desire to produce their own music using the creations of their dearest artists’.
Likewise, musicians too would want to utilise the power of their fandom, and reward them for their efforts and creativity. Although, this has certain obstacles on the way.
Initiation of the digital age means the music industry has to struggle with two primary but contradicting issues.
On one side, the trade is depended on making and guarding creative IP, the audios and compositions legalise through royalties and licenses. This is the main factor responsible for money making.
This mandatory requirement to license, supervision for rights, and royalties (as per the constitutional rules) is making them the obstacles hindering this zest of digital upheaval. Licensing assets usually mismatch the latest formats. Due to music’s double copyrighting system for every audio, accurate royalty payment is often troublesome. Thus, complexities are not uncommon.
This problem can be solved with the Web3 functionality, particularly by NFTs technologies and their smart contracts. Blockchain infrastructure fills the space between creative IP and innovative utilisation. It supercharges licenses using smart contracts. Thus, allows users to make new productions with original audios of an artist. Music audios can now transfer rights via chain. This speed up royalty movement to the right sides that too in a more efficient way.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.