The music industry can be a tough place to navigate for up-and-coming artists. In the digital era, it isn’t as simple as earning commissions from CDs or record sales. There is a lot of red tape involved, like record labels, publishers, multimedia companies, etc. In May 2020, Goldman Sachs estimated that the total value of the music industry is headed towards $131 billion in 2030. However, most artists do not have any clarity about how much they get paid or through what channels.
The modern music business involves millions of microtransactions per day, and the revenue generated per individual play of a track could be a fraction of a penny. Revenue also varies according to listener demographic and region. If an artist happens to have more streams from an economically advanced country, they get paid more per stream; but there is little clarity with respect to the breakdown of revenue.
There is also no mechanism for artists to monitor their income on any streaming platform. Record labels do little to help with this problem. Big labels have significant stakes in the streaming business, and they do not pass on any portion of the liquidity to artists. Not to mention that the procedure of royalty payments is so opaque that significant amounts end up in the wrong hands.
Despite industry efforts such as the International Standard Recording Code (ISRC) for sound recordings and International Standard Work Code (ISWC) for music works, intermediaries tend to route revenue through channels made specifically to circumvent these guidelines. Record labels pay streaming revenue to artists based on their contract, which typically tends to have very low rates. There are also multiple deductions involved, including recoupment of recording expenditures and such.
The reality is that very little money actually makes it to the artist’s wallet.
Transparency is by no means the only challenge the music industry faces in the 21st century. In the digital age traditional distribution models have taken major hits, new distribution models are a long way from being fully developed, and proliferation of artists has made it all the more challenging to be heard. That being said, creating transparency is the first task the industry should face. Addressing other problems and ultimately building a healthy sustainable industry requires a solid platform, the development of which demands tremendous clarity within the industry.
Blockchain and NFTs to the Rescue
The ongoing developments in blockchain technology are very promising for the future of music. Blockchain ensures a level of transparency that is unparalleled. With the use of smart contracts, the process of revenue calculations can be completely automated.
Musicians will finally have a clear picture of exactly how much they are making through merchandise, touring, licensing, and performance royalties. Most importantly, none of these figures can be manipulated. No involvement of any intermediary is required, and all data is stored in a decentralized manner.
Blockchain also opens up a completely new revenue stream for artists in the form of Non-Fungible Tokens or NFTs. With the use of NFTs, artists can sell rights to their music or auction off exclusive merch and collectibles for large sums of money. Notable names in the industry such as Grimes, 3LAU, King of Leons, and many others have already made sales worth millions of dollars using NFTs. This includes everything from music videos to live experiences.
NFTs are very desirable for hardcore fans as the items sold are truly and verifiably unique. These collectibles have significant potential to appreciate in value in the future, which also makes them sound investments.
MOZIK’s Platform to Democratize Music Using NFTs
With the help of smart contracts, MOZIK connects musicians with listeners in a way that benefits everybody. Artists can upload their music as well as sell NFTs on MOZIK. With blockchain technology, MOZIK’s system is secure, robust, and most importantly, completely transparent. The artist can freely access their data on the blockchain and keep track of their revenue. Payouts are timely and fully automated on the MOZIK platform.
The MOZIK NFT Platform will finally let artists be rewarded fairly for their creative endeavors.
About Mozik
Mozik is a decentralized music NFT platform aiming to build a healthier and fairer music ecosystem. Through the decentralized NFT platform, Mozik adopts blockchain technology to register earnings through music copyright, super-star IP, and IP derivatives on-chain. All the participants in the music ecosystem, including creators, publishers, customers, and fans can fairly participate. Through Mozik’s platform, artists will be incentivized to create more and better quality music. With lowered publishing cost and higher engagement from music fans, all participants can share in the rewards, and create a healthier and fairer music ecosystem.
