Individual pieces of content can be stored in a public database on the blockchain, which can then be shared with other network members. In this way, it can fundamentally alter the creative industry and how intellectual property (IP) and artistic works are protected.
Digital rights management (DRM) in the music industry has become increasingly complicated over time. It’s nearly impossible to figure out who wrote a song and owns the recording when there’s no way to look it up and no central database to rely on. Without transparency and database validation, determining rights, ownership, payment, enforcement, and validation is often a fool’s errand for the licensor.
Nobody is particularly motivated to address the lack of transparency in the music industry. Data is kept separate in separate databases in record companies, publishing houses, and collecting societies. This is the point at which technological advancements can dispel uncertainty and complication.
Redefining How Creatives are Remunerated
More and more intermediaries are entering the value chain between artists and their audiences, which means that artists are getting less money and have less control over how their creative works are priced, distributed, or advertised. Creative work is often undervalued because of the many transactional difficulties. It takes about 252 streams on Spotify, for example, before rights holders earn their first dollar.
As a digitalized distributed ledger, the blockchain keeps a complete record of all goods and transactions that occur on the network. Unique content can be time stamped and saved with a unique identifier, making this a useful feature for that content. Unlike most digital content, which, once downloaded, can be modified, mashed up, and used for various other purposes, once this information is saved, it cannot be changed. As a result, one of the greatest advantages of this system is its openness. Everyone on the blockchain network has access to the rights to any given piece of content, rather than being held on a server owned by a label or copyrights collection society.
Suppose you’re interested in building a decentralized platform on Ethereum. In that case, SingularDTV is one company that is looking to help content creators from the development stage through to distribution.
Code-based contracts, known as “smart contracts,” activated by a specific procedure or behavior and validated by all other computers on the network, are the foundation of the blockchain’s transactions. There are a variety of policies that content creators can program into a set of smart contracts. They select the appropriate usage policy for them and then immediately reward the creator through a smart contract that they’ve selected when they consume or repurpose this content.” Thanks to the blockchain’s central digital currency application, micropayments are automatically, instantaneously, and at a near-zero cost to the content owner.
Making Creators Self-Empowered
For the first time, consumers will communicate directly with content creators and get immediate access to their content thanks to blockchain technology. SVOD and TVOD intermediaries like Netflix may be removed from the content distribution and rights management process. All the financial gains are transferred to the creators in this use case.
Artists currently share 10 to 15 percent of album sales revenue on music streaming and purchasing platforms. Every purchase would be a one-to-one exchange on the blockchain. The use of digital currency also disrupts third-party payment processors, which typically charge a 4% to 6% transaction fee for the use of digital currencies.
Micropayments can revolutionize how content creators are compensated, but traditional credit structures do not allow this. That could also change with the help of the blockchain.
Content creators can use metadata (data about data) to enhance the discoverability and shareability of their work while also providing additional copyright information. Other content creators can also use metadata to build upon their work. As part of their efforts to change the music rights clearance process, the dot blockchain Music Project recently announced four major industry partnerships. Projects such as these open up a world of possibilities.
International Business Times interviewed dot blockchain Music’s CEO and founder Benji Rogers about the potential for creating a public and readable layer of value on the blockchain to enable users to see who owns which files. As a result, you’ll be in a much better position to begin trading with [the files] if you combine all of these inoperable databases into one decentralized database.
With the promise of simplifying ownership and rights, blockchain technology has the potential to re-empower the world’s dynamic content producers.
With blockchain technology, creative industries can overcome many of their current challenges. When applied to the creative industries, the unique features of blockchain technology could lead to greater efficiency, greater control, lower costs, and increased revenue for the creators themselves. Blockchain technology The creative economy stands to benefit greatly from the revolutionary potential of blockchain technology.