Why Web3 and the music industry are made for each other

Web3 and the music industry are turning out to be a perfect match, and with direct performances and streaming revenue, it looks like they’re going to live happily ever after.

by Janelle Borg by AmplifyYou

Let’s face it, the music industry has still have resisted changes that disrupt existing business models. Despite the resistance, however, the buzz around web3 suggests that this new version of the internet is coming – and fast.

But can web3 really revolutionize the music industry? What are the benefits for artists? And above all, how can web3 change the industry so that artists can finally take center stage?

What is Web3?

First of all, what is Web3? Simply put, this is the third generation of the Internet. Unlike web1 and web2, web3 is the read/write/clean stage of the internet. In addition to creating and interacting with content, each individual has the power to participate in the creation of this new Internet.

Since web3 is still in its infancy, different people interpret it differently. However, it is widely believed that web3 is decentralized – and closely tied to blockchain and crypto.

Interrupt streaming

Streaming platforms have long been criticized for their low payouts per stream. They often make headlines for features that hinder emerging artists, rather than help them. In addition to low per-stream payments, artists have to deal with intermediaries such as labels and distributors, all of which take a cut, leaving the artist with little or no money from streaming.

On the other hand, blockchain-based streaming services like Audius allow artists to get paid instantly every time someone streams their songs. They are designed in such a way that artists can upload their music directly to the platform, cutting out the middleman. Additionally, these streaming services operate as DAOs – decentralized autonomous organizations – allowing artists and fans to have a say in the future of the platform.

Revolutionizing payments via the blockchain

If you’re an artist, it takes months to register as a freelancer or partner with your bandmates and open a bank account. In addition to a lengthy bureaucratic process, you’ll likely spend money on consulting legal counsel and an accountant to navigate the system.

Additionally, DSP payments typically arrive in your bank account quarterly. Therefore, you must wait at least four months to receive any payment, which must then be verified by your bank before you can actually use that money.

A decentralized payment network means you can get paid and exchange money without having to trust third parties to protect your money. Globalization and global internet access means that a blockchain-based payment system makes international transfers cheaper, more transparent and less vulnerable to hacking.

Decentralized payment networks can bring financial services to artists and musicians living in countries that do not have access to the traditional global financial system. Indeed, anyone with a mobile phone can set up a wallet and have instant access to encrypted money transfers.

Fueling an elevated live industry

In the traditional touring industry, venues and promoters make money from ticket and drink sales. Artists receive either a lump sum or a percentage of ticket sales. Additionally, booking agents charge 10% to 15% of the artist’s booking fee. Traditionally, none of these parties receive additional revenue from this event after the concert is over.

That’s where Amplify comes in. This web3-powered live music ecosystem allows all parties involved in a gig to generate long-term residual income paid directly into their wallets using DeFi mechanisms ( decentralized finance) yield generators. The relationship between artist and promoter/venue is managed by the Amplify platform and maximizes transparency as it is all done on a blockchain. With Amplify p, all parties can generate more recurring revenue (like a monthly royalty) from their gigs in the months and years to come.

Why should artists explore web3?

The most interesting aspect of web3 is that, although it is a nascent technology, it is undoubtedly growing rapidly. A few years ago, only tech-heads knew about web3. These days it’s making headlines and being discussed everywhere, but it’s not all celebrity owned images of monkeys and wild speculation, there is a rapidly growing ecosystem of passionate builders using decentralized technology to solve some of the biggest problems in the world.

So it’s becoming increasingly clear that being an early adopter of web3 has its benefits for artists. By looking beyond the traditional music industry, artists can create and engage their own fan communities, tap into uncharted spaces and, most importantly, successfully live off their art in ways not previously possible with new ones. business models and ownership concepts.

Janelle Borg knows a thing or two about the music industry. Involved in the industry since the age of 13, she is now involved in a variety of music-related projects and is always eager to share industry tips and tricks with other musicians.

Comments are closed.