Blockchain applications in technology and many business sectors has clear uses and applications. Often the creative industries such as art, music and performance can be overlooked when new technologies come onto the scene.
The good news that is the blockchain can go way beyond simple financial transactions. It can support in the supply chain for creative industries, here is how.
Putting the Artists in the Centre
The current model for many arts economies is that there are middlemen; managers and platforms controlling the spread and access to the content. For example, Youtube has established itself in the value chain and takes large shares of the revenue that could otherwise be going to the artists. Other operators include the likes of Spotify or even a traditional band manager who operates and negotiates within the market on behalf of the artist.
McKinsey & Company have identified 5 pillars of blockchain technology that can protect artists rights and improve their access to honest renumeration.
Smart Contracts
As the blockchain can be made transparent the contracts can be smarter, better organised and increasingly fair to all of the stakeholders.
For example, royalties can offer better terms to composers, musicians, group members and other stakeholders involved in the process. Every transaction can be rewarded in near real time, for example a play on Spotify can send tokens to all of the stakeholders instantly, rather than this money working its way down a hierarchy; taking time and value away from the artists.
Increased Transparency
Imagine being able to see who is purchasing licences or even who is using your creative content. This ledger can be followed to check the correct attribution and copy right laws are being followed.
If you are interested in following a service like this have a look at Ascribe.io. The offer a service to attribute ownership of creative works accurately and securely.
Better Pricing Models
Prices can be easier to set and manage as it can be set from and by the artists themselves, rather than having to go through the existing web of intermediaries to set and agree on prices that are beneficial to all the stakeholders.
Work can also be dynamically priced, as an artist grows in reputation so does the value of their work. In the current model artists set and agree a price with projections on their future value, if they underestimate their success they can lose out on significant revenues that are rightfully theirs.
Micro Access
The blockchain can open up access to everyone. This would allow even a small end users such as myself to buy a small licence for an image or music track by going through the blockchain. Currently, if I wanted to by the rights to use a popular music track on a Youtube video it would take considerable time and resources. A blockchain removes the barriers and opens up the access to millions of end users.
There could even be an option to licence 10 second clips of music and still attributing the correct and fair value to this.
Reputation
Artists and end users can gain traceable reputation within the blockchain. Those who follow the rules and honour contracts can see their reputations increase, and this be recorded within the chain. Whereas those who do not fulfil agreements repeatedly can have their actions recorded in the blockchain.
This increased transparency can allow artists and end users to work with reputable parties.
Barrier Reduction
Ultimately, the blockchain removes a number of barriers and lowers the power of some stakeholders in order to increase the ownership an artist has over their own work.
Brilliant, here is hoping this can take away the power of the big players - Spotify, YouTube and, Apple Music, to name a few big players who need to have some power removed.