Blockchain: A New Era in the Music Industry
The
music industry is an ever-evolving synthesis of creativity and
business, an immense medium that reinvents itself to keep up with the
times and absorb new trends. It generates billions of dollars every year
and sometimes it is easy to forget that before all the record
companies, music moguls, managers, agents and everyone else involved,
stands the artist without whose creativity and hard work none of it
would exist.
Today,
it is clearer than ever how far the financial potential of the music
business extends. Innumerable opportunities lie ahead and, as a result,
the number of people seeking to commercially profit off of musicians has
skyrocketed, while musicians’ earnings have dramatically fallen.
The number of people seeking to commercially profit off of musicians has skyrocketed, while musicians’ earnings have dramatically fallen.
Breaking
into the music industry might also seem daunting and even discouraging
for many artists without industry connections. Nevertheless, it is also
true that today, for the first time in history, artists have all the
necessary tools, offered to them by the digital age, to pave their own
paths to success without relying on others.
Music Market Volumes
- Revenue in the “Music Streaming” segment amounts to US$9,574m in 2018;
- Revenue is expected to show an annual growth rate (CAGR 2018–2022) of 6.7% resulting in a market volume of US$12,411m in 2022;
- User penetration is at 24.7% in 2018 and is expected to hit 26.6% in 2022;
- The average revenue per user (ARPU) currently amounts to US$7.56;
- From a global comparison perspective it is shown that most revenue is generated in the United States (US$4,854m in 2018).
In-scopeSubscription-based (no advertising) or ad-supported unlimited access to music streaming services
Out-of-scopeInternet radio and video streams (e.g. YouTube)
Digital Music Market Volume
- Digital Music allows customers to have permanent and unlimited access to music content. The worldwide revenue of US$11.2 billion in 2017 is expected to grow to US$14.4 billion in 2022;
- Revenue in the “Digital Music” segment amounts to US$12,122m in 2018;
- “Music Streaming” is the market’s largest segment with a market volume of US$9,574m in 2018;
- User penetration is at 26.0% in 2018 and is expected to hit 27.6% in 2022;
- The average revenue per user (ARPU) currently amounts to US$6.76.
In-scopeDigital audio content that is distributed to the end-user over the Internet;
Paid digital downloads of single tracks or albums/compilations;
Streaming services, both subscription-based or ad-supported.
Paid digital downloads of single tracks or albums/compilations;
Streaming services, both subscription-based or ad-supported.
Out-of-scopeInternet radio, video streams and audio books.
The
streaming market is currently ranking in more than $5bn globally for
the three major music groups — Universal, Sony Music and Warner, but the
ratio of label income to artist income is approximately 4:1.
The
most accurately encompassing figure cites within recorded music
industry is that of the leading economist Will Page. According to Page,
music copyrights globally generated $24.4 billion in revenues in 2015,
that’s a whopping $10 billion more than the often cited IFPI figure that
largely excludes publishing and songwriting income.
The worldwide revenue of online live event ticketing in 2017 was US$32.0 billion for primary sales and another US$9.8 billion for the secondary market. Both ticketing segments are growing at a 5-year CAGR of 14 and 19 percent respectively.
Blockchain and smart contracts represent the beginning of a new technological era that will give more financial power to music creators and help them track down their earnings.
Altogether, recorded music and ticketing presents a $66.2 billion market.
Regulators
are trying to help musicians make their earnings transparent, but
without the implementation of new technologies it is almost impossible.
The US Copyright Royalty Board ruled that streaming services — Google,
Amazon, Apple, Spotify and Pandora — would have to increase the share of the income they pay to songwriters and publishers from 10.5% to 15.1% during 2018–2022 years.
Blockchain
and smart contracts represent the beginning of a new technological era
that will give more financial power to music creators and help them
track down their earnings. Moving contracts over to the blockchain will
allow the artist to receive their royalty distributions in real-time,
with every distribution recorded on a ledger.
“We’re
not trying to reinvent the wheel, but rather take the newest and most
reliable technologies that have already proven themselves on the market
and apply them to the music business. Of course today there are numerous
services geared towards musicians, but what we have done is create a
platform that will help musicians efficiently manage their finances with
accurate analytics and build a closer relationship with their
fans!” — said Vadim Kurochkin, Co-founder of Soundeon.
Soundeon
is the first decentralized and vertically integrated music platform
that brings artists, software developers, producers, media executives,
blockchain experts and countless others together into a single
community.
New
technologies within blockchain computing, such as the self-executing
smart contracts, allow Soundeon to create a functioning, stable, secure,
and adaptive environment to solve practical problems in digital media
and ticketing.
Soundeon’s
smart contract is the nucleus of a large ecosystem. Its versatility
provides compatibility across platforms, wallets and exchanges.
If you would like to keep an eye on our project, follow us on:
website:http://soundeon.com
whitepaper:http://soundeon.com/Soundeon_WP.pdf
Republished By:Opeyemi
ETH ADD:0x5B606c2F10687e77dc7Fe644E429320C6a39Df63
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