Blockchain Set to Revolutionise the Music Industry
Every day we listen to new music or old favourites. Hundreds and thousands of songs are posted on the Internet and are made available for free. The question is, what does this mean for the future of music and for those who make it? According to Tamir Koch, general director of the digital music store eMusic, we are heading towards a scenario in which musicians will be rarer and performers will be fewer. Why does he think that this will happen?
The answer is simple. The existing streaming system allows anyone to listen to any music tracks recorded in the history of the music industry, but it does not protect the copyright of musicians. It is important to understand that traditional electronic music libraries have outlived their usefulness and are no longer fit for purpose. This fact is vividly confirmed by what is happening with Spotify, one of the leaders in the industry. Spotify is already sustaining huge financial losses which are estimated to reach US$400 million by the end of 2018. And this same fate is expected to befall AppleMusic.
What’s the Verdict?
eMusic, owned by Kazakh businessman and investor Kenes (Kenges) Rakishev, has announced a desire to raise around US$70 million to create a decentralised system for selling music content and managing remuneration for musicians. The start of the public ICO for the creation of a new platform based on blockchain technology was scheduled for September 2018. The task that eMusic is setting itself is ambitious. The new platform will allow authors and musicians to:
• see how many times each music track was listened to and downloaded from any album, in real time.
• protect their intellectual products from pirates (the platform will ensure, once and for all, that it is possible to effectively enforce legislation prohibiting the pirated distribution of content).
• understand the distribution of fees (the system whereby rewards are distributed between the music-providing service and the musician will become transparent).
Major Change Expected for the Music Industry
Rakishev and many experts in the global music industry agree that the new technology will significantly change the industry in the coming years, eliminating serious shortcomings. If eMusic receives the support it needs, the world will have a new music platform that musicians are likely to wholeheartedly embrace.