How to Improve the Music Industry with Blockchain
The exorbitant expense of recording and disseminating music is one of the main issues facing musicians today. Artists are required to pay for the packaging as well as the song’s creation when they release an album or single. Additionally, as albums are now more frequently purchased than singles, artists are required to pay labels and distributors a royalty for each album sold.
Artists have to pay for marketing campaigns in addition to the tangible output, which can be pricey. As they say, if you want to travel far, travel alone. Therefore, artists should concentrate on growing a loyal fan base rather than going out into the world and pleading for followers’ attention. They will be recognized for their achievements in this manner.
However, how precisely do you do that? There are two methods, though. The first is direct sales, when fans of the artist buy their goods from them. The other method is crowdfunding, in which supporters combine funds to support the funding of new works.
Let’s now discuss the reasons each of those tactics is effective. Think about direct sales first. You sell stuff to customers directly in this model. When someone purchases anything from you, it indicates that they are interested in it. When you give someone what they desire, it’s simpler to attract their attention.
Second, think about crowdfunding. By using crowdfunding, you can create a fan base and then ask them for donations. When this occurs, you not only make money but also develop a bond with your audience. By establishing a relationship of trust with them, you can persuade them to purchase your products.
The underlying ideas of cryptocurrencies, which are based on the blockchain, are the same. They thus offer musicians a fantastic platform to promote their careers as well as their music. Users can pay money to one another directly using blockchain-based technology without the use of a middleman. Furthermore, it is secure to do so because the blockchain records every transaction, eliminating the possibility of fraud.
Decentralization also enables developers to create smart contracts, which artists might utilize to interact with their audiences. In reality, a lot of musicians are now disseminating their music via this technology. Artists may easily connect with their audiences and forge bonds with this strategy.
The Benefits of Blockchain for Musicians
Blockchain is a potent tool for connecting artists and their followers, as we discussed above. It enables artists to interact with and establish relationships with their communities directly.
Additionally, blockchain is a fantastic tool for promoting their music. Artists can encourage their fans to promote their music by offering them a stake in the endeavor. These supporters will be more likely to spread the word about the project since they will feel invested in its success.
As a result, artists won’t need to rely on conventional forms of advertising. Instead, they may employ their creative thinking to come up with novel strategies for spreading the word about their music. And indie musicians will particularly benefit from this. The majority of musicians are unable to compete against major record labels because of the status of the music industry today. So they have to use crowdfunding in order to obtain visibility.
But with blockchain, musicians can completely avoid this procedure and play their song in front of their intended audience. They only need to publish their songs to a decentralized app (dapp) and allow their listeners choose whether or not to listen to them.
Even though some dapps may resemble more established music-related services, they actually offer much more. For instance, users of the app can purchase virtual things like T-shirts, hats, and stickers. Additionally, 30–40% of the musicians’ earnings are not taken by dapps. In addition to using dapps, musicians and other members of the music industry can earn money by using cryptocurrency.