Online music and audio bookstore eMusic has announced the launch of a $70m token sale to build a decentralized music distribution and royalty management system. eMusic plans to launch a pre-sale for their tokens beginning in September 2018. The audio store has been part of the music business for over twenty years and it follows a long list of companies that are beginning to favour the use of blockchain technology.
Before you say – “I’m a musician and do not understand blockchain technology”. Give us a minute to explain. Blockchain is literally blocks of information chained together through technology. Imagine Block A + Block B + Block C chained together. All three blocks share information which means you cannot alter information of any single block without the other two blocks knowing about it and breaking the chain. This is blockchain in a nutshell.
How does this translate to musicians? Well, the blockchain platform will allow artists to publish and distribute music and manage rights and royalties. Once a song is uploaded and then played or sold, the revenue is split between the service provider and rights holder.
This is a decisive factor because if widely adapted this technology could disrupt content rights distribution altogether. Streaming giant, Spotify still requires third-party providers to regulate distribution rights – this results in complex contracts through multiple providers.
eMusic is not the first platform to enter the market – music blockchain startups such as Revelator and Musicoin are already sprouting roots in the industry. Dubai is also gravitating towards the introduction of blockchain technology in the arts sector. The best part is that all the additional income from cutting out the middleman will ultimately be redirected to the artists themselves.