The music industry is undergoing a seismic shift. Streaming dominates, but artists struggle to monetize their work effectively. Enter Web3 and blockchain technology, offering a revolutionary solution: tokenized music catalogs.
Streaming’s Dominance & Artist Struggles
Music Protocol CEO Sergio Mottola highlights the challenge: with streaming accounting for 84% of revenue, traditional models like buying tracks are fading. While NFTs offer some solutions, they primarily benefit artists with established fan bases.
The Web3 Solution: Tokenizing Music IP
Mottola envisions a future where music catalogs are tokenized on the blockchain. This allows major labels to digitize and distribute their vast libraries, creating a marketplace for users to purchase licenses and leverage the IP for creative projects.
Imagine Music in the Metaverse
One exciting application lies in the metaverse. Currently, integrating music is a challenge. Tokenized music IP solves this by offering creators seamless access to massive catalogs, enriching user experiences in virtual worlds and opening new revenue streams.
Beyond the Metaverse: Benefits Abound
Tokenization goes beyond accessibility. It establishes a framework for data availability and revenue generation. Additionally, it offers a solution for the growing challenge of AI-generated music and copyright violations. By registering IP and issuing licenses on the blockchain, artists and labels maintain transparency and control.
A Future Powered by Blockchain
Music Protocol isn’t trying to reinvent how the music industry does business – they’re equipping it with a powerful new tool. Blockchain streamlines workflows, reduces friction, and safeguards the future of music through transparent rights management.
The Future is Now: 2024 and Beyond
Music tokenization is poised to reshape the industry in 2024. Music Protocol is spearheading the movement with an open innovation campaign starting in July. This is a revolution waiting to happen, and the future of music sounds brighter than ever.
