Making a Scene Presents – How Blockchain Music Streaming Works

Music streaming has been fully embraced by the music consumer.  They prefer listening to songs on their phone, computer, or tablet without downloading them. No matter if you like it or hate it the fact is we are not going back to the days where the consumer purchased their music on CD and Vinyl. Unfortunately, the music creator community was caught off guard by many of the Apps that rose to prominence and now dominate the music industry. Companies like Spotify, Apple, Amazon, Pandora, etc. have been operating on a business model that funnels a majority of revenue to the top leaving only fraction of a cent per stream for the artists and their work. Daniel Ek, who owns spotify, has amassed more wealth than any music artist in history (living or dead) without playing a note or writing a single song. In Fact Forbes reported his net worth at over 7.8 BILLION dollars! To add insult to injury, Spotify instituted their policy last year that they will not pay any track that gets less than a 1,000 streams. According to Chartmetric, 81% of the content that is currently on Spotify is under 1,000 streams! Think about that a Minute?!

If you look at the timeline of the digital revolution the one thing that gives us hope is the fact that no matter who had dominated the industry there was always something new ready to take it’s place. Remember when we all thought that Apple and the Ipod were going to own the music industry forever? The question is not as to “If” the Spotify model is replaced, but more as to “What will take it’s place” and how we can insure that we as artists are compensated fairly. This is where the “Decentralized” business model using the blockchain for music streaming, investment and fan engagement comes in!

What is Blockchain?

Blockchain is like a big digital notebook that keeps track of things safely. It is made up of blocks of information that are connected, forming a secure and unchangeable record. Every time someone listens to a song or makes a transaction, the information is recorded on this digital notebook. This technology makes sure that nobody can change or erase the records. This is important for musicians because it helps them get paid fairly when people listen to their music.

One of the biggest advantages of blockchain based applications is the fact that no one company or person can own the service. It is owned by the artists who put up their content and the fans who want to pay for it. It helps eliminate the middle man structure of the music industry replacing it with a more direct fan to artist relationship and revenue stream.

How Does Blockchain Music Streaming Work?

Artists put their songs on special streaming websites that use blockchain, ensuring their work is safely stored and protected. Just like normal streaming, people press play and enjoy their favorite songs. However, instead of streaming through a big company that takes a large cut, blockchain streaming lets the artist receive payments directly.

When someone listens, the blockchain system automatically triggers a “Smart Contract” and sends money to the musician. Smart contracts are self-executing agreements that ensure payments happen fairly and quickly. Since blockchain is open and transparent, musicians can see exactly how many times their songs have been played and how much money they have earned.

How Do Fans Pay for Blockchain Streaming Services?

Many blockchain platforms use digital money, like Ethereum or special platform tokens, to allow fans to pay for subscriptions, unlock exclusive content, or tip their favorite artists.  Some services, like Audius, allow fans to listen to music for free while rewarding artists with tokens based on their song’s popularity. On platforms like Royal and Opulous, fans can buy a small portion of a song’s ownership. In return, they get a share of the artist’s streaming revenue.

Instead of the revenue streams from music being filtered through a big company, fans can send money directly to artists, ensuring more of their money supports the musicians they love.

How Do Musicians Get Paid?

The more people listen to their songs, the more money musicians earn, and it goes straight to them without waiting for a monthly paycheck. Some platforms give out special digital coins (called tokens) that musicians can turn into real money or use for special perks. Unlike traditional streaming services that take months to pay artists, blockchain music streaming ensures artists receive their earnings immediately after their song is played.

Musicians don’t have to share a big part of their money with record labels or streaming services. They keep more of what they earn, which makes it a fairer system for artists.

Why is This Good for Fans?

Without big companies taking a cut, fans might pay less to access high-quality music. Fans know their money is going straight to the musicians they love, helping them make more great music. Some platforms let fans buy special songs, live recordings, or unique experiences directly from artists, making their music collection more valuable. Fans can interact with musicians in new ways, such as voting on upcoming songs, getting early access to releases, or even earning rewards for supporting their favorite artists. In addition, these new streaming platforms allow for HD or high quality streaming for a better listening experience.

Some Blockchain Music Platforms

Audius – A free music streaming site where artists get paid in tokens based on how popular their music is.

Rocki – A place where musicians get paid instantly when their songs are played using blockchain-powered smart contracts.

Opulous – Fans can invest in their favorite artists and share in their success by receiving a portion of streaming royalties.

Royal – Allows fans to purchase rights to a musician’s song and earn a share of the profits whenever the song is streamed.

Bitsong – A decentralized music streaming platform where artists earn directly from their audience without intermediaries.

Conclusion

Blockchain music streaming is changing the way musicians and fans connect. It ensures artists get paid fairly and quickly while giving fans more ways to enjoy and support their favorite music. The advancement of a decentralized music industry is not only good for the independent artist, but for the music fan it gives them a way to have a stronger connection to the artists they listen to by giving them the opportunity to invest and become part of an artists success. It’s a win-win for everyone, creating a more open and transparent music industry!

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