PRB Media are looking at the Blockchain and Cryptocurrency
world and how this effects / benefits the entertainment industry.
Blockchain is ushering in disruption in various
industries. Even big multinationals like IBM etc are working on their own
blockchain projects, hoping to maximize the technology’s. Yet despite the
upsurge in adoption and amid the rise and rise of Bitcoin, not all of
blockchain’s applications are being used by established companies, there
are exceptions, for example, messaging platform Kik, Hamburg-based fintech NAGA
Group AG with its ecosystem and virtual reality (VR) platform Ceek, who have
turned towards token sales to accelerate their respective growth. This article
looks at how the blockchain could transform the music / entertainment industry.
Twenty years after peer-to-peer (P2P) file sharing
decimated the music industry, blockchain is emerging as a new P2P technology
that could rip into the industry. But this time, the revolution promises to be different.
Whereas digital and illegal downloading once wreaked havoc on the industry at
large (from music creators to record labels, none were spared), a
blockchain-based model for music pledges to boost the fortunes of artists.
Industry middlemen and gatekeepers, however, could be in danger.
This is according to the vision proposed by SingularDTV,
a company that is developing an entertainment app ecosystem on top of Ethereum
— the blockchain computing platform for launching decentralized apps. Through
its apps, SingularDTV hopes to enrich and empower artists, and rewrite the rules
of the music and broader creative industry. Some of key steps its taking to
accomplish this include:
Creating a token-based economy where value is derived
from an artist’s work.Tokens are the native crypto-assets of a blockchain app.
They are powered by smart contracts (code-based financial agreements) that are
programmed into Ethereum. When an artist tokenizes, they’re turning their
intellectual property (IP) into a financial asset, so an artist’s token
reflects the value of their creative output. Those who buy into an artist’s
tokens buy into owning a share of the artist’s creations and its revenue flows.
The more people who consume the artist’s creation, the higher the value of the
token.
Enabling artists and consumers to earn money from selling
and buying tokens. Artists can raise money through a token launch, which is
similar to an initial coin offering (ICO). Here, anyone can buy the tokens
upfront. The majority of the windfall will go the artist, and the token launch
platform-provider (such as SingularDTV) will retain a service fee. These tokens
are programmed via smart contracts to dispense royalty flows: If someone pays a
dollar for an artist’s content, then all of that artist’s token-holders will
receive a pro rata share of that dollar, explains SingularDTV CEO Zach LeBeau.
Tokens can also be exchanged for perks, like special access at a concert or
early access to a new film release.
Eliminating middlemen and undermining the influence of
industry gatekeepers.Tokenization lets artists raise funds upfront without
relying on an advance from their record label. Meanwhile, distributing content
via blockchain would allow artists to skirt streaming platforms like Spotify to
earn royalties on their own terms. Of course, the success of this model hinges
on attracting users, but there are reciprocal incentives in place — on both the
artist- and consumer-side — for it to take off, and LeBeau believes this model
could become mainstream in as little as two years.
One artist who has a passionate and large following is
already onboard with SingularDTV’s vision. Gramatik, the New York-based hip-hop
and electronic artist, is the first musician to sign on the company’s
tokenization program, and he's set to launch 100 million GRMTK tokens on
November 9. “This is something artists have been dreaming about since the
beginning of time, to be free of gatekeepers, and to communicate freely — and
even be in a business relationship — directly with their fans,” Gramatik told
BI Intelligence. It’s not hard to imagine his excitement spreading to legions
of artists and fans in the near future too.
Witten by - Robert Elder
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