Web3 is changing the music industry
During lockdown, we all realized how important music events, concerts, and festivals are an essential and joyous part of our lives. Nevertheless, there are several issues that need to be addressed to ensure the longevity of creators and music culture.
Jul 20, 2022
Music has been long ingrained into culture and plays a vital role in society today — Whether it’s religion, entertainment, tourism, or heritage it is an important pillar of humanity. During lockdown, we all realized how important music events, concerts, and festivals are an essential and joyous part of our lives. Nevertheless, there are several issues that need to be addressed to ensure the longevity of creators and music culture.
Since the rise of modern-age music, we have seen a trending pattern where music labels, executives, ticketing services, and streaming platforms benefit from the music — rather than the artist/creator themselves. Over the past decade, creators have realized the lack of benefits for them in this industry and something has to be done to improve the future situation. For example, if we take a close look at streaming statistics and how much artists make from their music, it’s abysmal and quite saddening. In order for an artist to get 1000 dollars from Spotify, they need to have 300,000 streams — which is an absurd number. Even mainstream/popular artists struggle to make a solid income from streaming platforms.
Photo by Filip on Unsplash
So, how can we expect creators to make a living off it when incentives are minimal, and barriers to entry are so high?
Well, with the rise of Web3, enabled by blockchain technology, we have seen a surge in organizations producing the necessary infrastructure and tools, trying to facilitate next-generation peer-to-peer creative economies. This has given a glimpse of hope for the future of creators, through the removal of the current business model defined by its massive marketplace commissions, gatekeeping, targeted advertisements, and intermediaries who benefit the most from creators.
We have already witnessed several large musicians, such as 3LAU, embark on this Web3 journey to take full control of their creations through platforms such as royal.io. It won’t be long before we see other large, and small, artists take this path when they realize the benefits it has for them. Furthermore, we are seeing other companies, such as mixtape, who aim to bridge the connection between personal life moments and music that may be connected to those situations. This is all done through their native ‘Mixtape Token’ which leverages the functionality of blockchain and allows fans to compensate artists through their open and collaborative platform.
Illustration by Rapid Innovation
It is true that we are at the early stages of this technology, and that Web2 is still dominant, but it will be interesting to see the direction it goes in. In spite of Web2 dominance, the reality of this new technology to create an alternative landscape where creators will reap the benefits of their art is around the corner. The current state of the crypto market may not be the most ideal and it is understandable that people are still uncertain about this technology. As people become more educated and knowledgeable about the topic, we will see an influx of creators and Web3 companies popping up everywhere.
VINCI plays an important role in this regard, by exploring and providing solutions that fix the disconnection between creators, industry, and consumers. The goal is to improve creator access to revenue streams and streamline how artists engage with their respective communities. VINCI seeks to provide simple safe ticketing services, as well as a marketplace that empowers creators and their respective communities in the long run.
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