eMusic became the digital music pioneer by launching the first online store for MP3 downloads. This company has been presenting services for over 50 million music fans since 1998. The new launch creates opportunities for artists, fans, and music services. Inclusive contents, special discounts, and musical sneak peeks are some of the options provided for the fans. The retail store would be used to buy music once the token is released. The company enables users to purchase music directly from the artists. The new idea is based on the Blockchain technology that allows the musicians to earn more money by eliminating the intermediaries. Eliminating them enhances the speed of the process as well. Being based on Blockchain means it is decentralized and provides digital currency for the purchasing. Another option provided for the users is the referral and review rewards. eMusic can provide the musicians with the right of ownership. The clear cut ownership of the music with extensive access is provided.
Distributing music causes additional costs; this issue can be solved using Blockchain. In other words, the new platform is based on Blockchain technology. This fact reduces the overhead costs along with instant payments. The platform increases the publicity since it can provide the fans with incentives to support them on social media.
Regarding the distribution of music, Tamir Koch, the firm president said:
“Streaming has dramatically increased revenues and adoption, but the model has proven itself to be fundamentally flawed. […] Hard-up artists receive a fraction of the royalties, while intermediaries take an ever-growing slice of the pie and leading services remain loss-making.”
Koch further explained the funds are dependent on the commercials. The flow of funds between fans, artists, and music services with the new commercial model will consequently result in the royalties we promised. They also clarified that the artist will receive 50% of the fund they generate. They clarified:
“Major music services are paying for the music based on revenue share, while payouts to artists are based on a per-use model. This means that if you are listening to an artist on Spotify and you are paying $9.99 for the month, Spotify pays out seventy-five percent, but the artists see only a small portion of that. In the middle, you have intermediaries such as collection agencies paying out on a per-play basis to artists.”
To sum up – This new technology is another step toward the future of music. Blockchain is centralized in many different industries including the music industry lately. The article showed the positive points of using the new technology available for artists, their fans, and music services.
Spotify: Spotify Technology is a Swedish media services provider and music streaming service.