The transition of royalty funds into the blockchain ought to empower artists within the music trade by growing their bargaining energy for asking increased payouts, claims a report that blockchain-based digital music platform, OPUS has shared with Cointelegraph.
In keeping with OPUS’ study, given the novelty of introducing blockchain to the digital music streaming companies market, they see nice potential progress.
The blockchain-based platform says that artists could also be drawn to decentralized platforms due to the potential for comparatively increased earnings, in comparison with typical platforms.
OPUS believes {that a} shift to tokenized royalties would additionally diversify private portfolios of artists.
Lately, the analysis noticed a “substantial” improve within the cashflows payable on the grounds of royalty-related contracts within the leisure and media industries.
Areas with a rising curiosity in blockchain options within the trade
Charges for using mental property elevated at an annual fee of 8.99% in 2017 and 5.81% in 2019.
The report predicts that blockchain’s function within the music trade can be particularly notable in rising economies similar to China, Brazil, India and Russia, regardless of the dominance of mainstream platforms similar to Spotify, Apple, Amazon and Google.
The Asian big is the one which stands out essentially the most, as its royalty funds quadrupled between 2016 and 2017.
One other nation of curiosity is Venezuela, as OPUS states that there’s a rising adoption by blockchain know-how.
Training as a key issue to boost consciousness
Nevertheless, OPUS claims that the open-source decentralized music platforms of the long run shouldn’t simply deal with growing the musicians’ ultimate share within the royalties, but additionally educate them on relevant features of monetary literacy.
The report provides that new platforms may have room to develop:
“As this market is at the moment dominated by a number of massive gamers, there’s a vital room for brand spanking new platforms to alter the way in which and quantity of royalties distributed to particular person musicians, podcast producers, and all different artists. Particularly, the Blockchain is right here to alter the established order.”
In 2019, Cointelegraph reported a number of use instances of blockchain utilized within the music trade similar to the worldwide media big Warner Music. Warner introduced that they’d begin creating digital tokens utilizing a public blockchain backed by the creator of CryptoKitties.
