While streaming services have made music more accessible than ever before, artists in the industry are increasingly struggling to ensure they are promoted and paid fairly. This has regulators looking at new ways to split revenue fairly and transparently – something which the BSV blockchain excels at.
On Wednesday (17 January), the European Parliament called for EU rules to ensure the music streaming sector is fair and sustainable, and to promote cultural diversity. The resolution asks for the imbalance in revenue allocation from the music streaming market to be addressed, as it currently leaves a majority of authors and performers with very low compensation.
Members of parliament insist on a new EU legal framework for the sector, for which currently no European Union rules apply, even though streaming services are the main way that people access music.
Some of the critical issues raised in the resolution include:
- Fair pay for authors – The “pre-digital royalty rates” currently applied must be revised, they say, condemning the payola schemes that force authors to accept lower or no revenues in exchange for greater visibility.
- Visibility of European works – EU action is needed to guarantee European musical works are visible, prominent and accessible, among the “overwhelming amount” of constantly growing content on music streaming platforms.
- Transparency of AI tools – The EU bill should oblige platforms to make their algorithms and recommendation tools transparent, to prevent unfair practices, such as manipulation of streaming figures, allegedly used to reduce artists’ fees.
How blockchain can help
The BSV blockchain has the potential to revolutionise the music streaming industry by fostering transparency, fairness, and increased revenue distribution. One of the primary challenges in the current music streaming landscape is the lack of a transparent and efficient system for tracking and compensating artists for their work.
Blockchain can address this issue by creating a distributed and tamper-proof ledger of music rights and transactions. Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, can automate the royalty payment process. This ensures that artists receive fair compensation based on the actual usage of their music, eliminating intermediaries and reducing the likelihood of disputes.
Moreover, blockchain can empower artists to have greater control over their intellectual property. Through blockchain-based platforms, artists can tokenise their music, creating unique digital assets representing ownership and rights. This enables them to directly connect with their fan base, offering exclusive content or experiences in exchange for these tokens.
By cutting out middlemen, artists can receive a more significant share of the revenue generated from their music. Ultimately, the implementation of blockchain technology in music streaming services not only promotes fairness in compensation but also empowers artists, fostering a more direct and equitable relationship between creators and consumers.
A working use case
Several companies are already using the BSV blockchain to help make the music industry fairer – including Soundoshi. Soundoshi uses several innovative features to monetise audio content. This includes using NFTs (non-fungible tokens) as the modern equivalent of CD. This allows artists to tokenise their music, offering unique collectables to fans. Additionally, it presents NFTs that represent master record rights, providing a fractionalised option for investors seeking future revenue streams.
Moreover, Soundoshi has developed a dedicated wallet infrastructure tailored to the specific needs of music platforms. This infrastructure facilitates monetised interactions such as comments, likes, follows, and more. Its platform also supports instant micropayments per stream, creating an alternative revenue stream for artists that complements our NFT offerings. In summary, our multifaceted approach provides artists with a flexible, efficient, and cost-effective means to monetise their content.
