Blockchain technology has now played a major role in the financial industry, and the blockchain + has become the word on the cusp of the Internet. As a decentralized technology, blockchain can also bring disruptive applications to different industries. What is the relationship between the blockchain and the music industry?

At present, the business model of Internet music is similar to the business model of traditional music, which is to purchase or produce music (copyright), and then sell the music to users through channels. In the process, Internet music companies replaced the role of traditional record companies. The Internet platform replaced the traditional offline channels. In essence, there was no way to change the way music content reaches users. Even if Internet music made some breakthroughs in business models, For example, by watching advertisements, users can listen to songs for free, order a product to give music services, bundle sales with other products, and fan economy.

Second, blockchain technology will fundamentally disrupt the existing music industry:

1. Subverting the use mode of music copyright

The traditional music business model is to purchase copyright and then sell it to users through certain channels. Now blockchain technology can digital content of each new song registered on the blockchain platform, as well as songs, album descriptions, covers. All relevant information such as copyright authorization, user usage information, etc. are completely saved. Since the distributed recording method of the blockchain is independent and does not belong to any single entity (platform) and cannot be tampered with, the music creator does not need the record company to register the copyright of his own work.

Now Ujo Music Company in the United States allows musicians to record, promote, authorize and directly obtain royalties on their works through smart contracts supported by the blockchain platform. This means that musicians can completely abandon record companies or Internet music companies and their marketing platforms through the blockchain platform, directly facing users.

2. subvert the existing business model

Nowadays, the copyright fee payment chain in the Internet industry is not only complicated but also lengthy. It usually goes through the copyright agent, record company, artist broker, streaming media service provider, Internet music platform and so on to reach the musicians. Usually, it will wait for the first half of the year. One year. After deducting the fees from multiple parties, the copyright income of the musicians is running low.

The blockchain platform can establish a direct connection between the musicians and the consumer groups, thus ensuring that the musicians can collect the copyright fees paid by the consumers in a timely and convenient manner, and at the same time avoid the deduction of the intermediate links.

The process is updated as follows: As long as the user makes a request for use on the blockchain platform, the smart contract will immediately open the requested music work permission to the user, and at the same time, after deducting a certain platform service fee from the user’s payment, the direct payment will be made. Into the copyright owner’s encrypted wallet.

In the process, the price of each song is set by the copyright owner, which also gives the user more choices: the user will choose a cheaper song.

3. subvert the user’s piracy

The main reason why most users are not willing to pay for music is that users can find many ways and means to copy and even spread pirated music. But blockchain technology is expected to solve the problem of pirated music. Blockchain technology now supports a “dot blockchain” codec and player that allows you to record a unique playback record for each song, rendering the song unplayable by any other player. 

In addition, copyright owners can also choose the P2P file sharing method based on blockchain technology, and use rewards and incentives to encourage users to publish and distribute music through the blockchain platform, so that users who publish and distribute music become The “distributor” of the music, so that both the copyright owner and the “distributor” can benefit from it.

While the blockchain is flooding into various industries, the music industry’s high expectations for the blockchain are essentially a vision to improve industry inequality and improve resource allocation. From this perspective, the blockchain platform does have great development prospects and space. 

However, as far as the current situation is concerned, the blockchain is still on the line. In addition to the huge cost of building blockchain technology, we should also consider the problems under the topic of “decentralization”. However, it can be confirmed that once the blockchain is applied in a wide range, it will become a powerful force to subvert the existing music industry, and it will have a profound impact on many links in the industry chain. However, before the arrival of this day, in addition to continuing to learn and study the blockchain, there is no need to blindly fall into the unknown technical myth.

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