There’s a new version of the internet coming–the much touted “Web3”-and it has the potential to bring with it a series of changes to the music industry.
Web3 is essentially the third generation of the internet, and in addition to being decentralized, it adds a read/write/own stage that ultimately enables each individual to participate in this new version of the web.
According to an article on Hypebot, here are some ways that Web3 might disrupt the music industry:
- Streaming: New blockchain-based streaming services are designed so that musicians can upload their music directly to the platform. The fact that these platforms are designed as “decentralized autonomous organizations” will also not only enable artists to be paid instantaneously, but will also allow them to have a say about how the platforms function.
- Payments via blockchain: A decentralized payment network will eliminate the often lengthy process currently in process of establishing a partnership (creating a bank account, consulting legal advisers, etc.)–in addition to the slow quarterly payment process. A blockchain-based payment system will have several advantages, namely that the distributions will be less vulnerable to hacking, more transparent, and will also enable artists and musicians to have access to financial services if they live in a country without access to the current global financial system.
- Live music: Web3 live-music platforms will be able to create their own artist-centered ecosystems, allowing musicians more transparency with the numerous expenses involved with live gigs. With venues, promoters, and booking agents all involved and vying for a cut of the pie, the finances in touring are needlessly complicated–with Web3, yield-generating decentralized finance mechanisms (like a crypto wallet) provides the potential for more revenue on a blockchain.
As Janelle Borg writes concludes in the article: “By looking beyond the traditional music industry, artists can build and engage their own fan communities, tap into unexplored spaces, and, more importantly, successfully live off their art in ways not possible before with new business models and ownership concepts.”