Problems in the music industry
Artists, especially musicians, are unique breeds who seldom pay attention to their remuneration and may not be the type of people who can bargain for their rights. Many talented artists get ditched by their promoters/sponsors and paid poorly for their skills. Things have started to change gradually, and we can find consolidated efforts in this field by musicians forming their own brands. This involves direct marketing, by appointing marketing/promotional agencies to make commercial deals.
Making a contract may not be the right way to become a successful music entrepreneur. It should have a precise way to share the revenue with all parties involved. The income should have to be distributed in the right way, at least on a rational scale, acceptable to all parties involved in the deal. As said earlier, many musicians are not aware of the legal formalities and what is a ‘right contract’ that can save the interests of their rights.
A possible solution for overcoming these issues is to build meaningful relationships directly with every listener and allowing them into invest in the music album, by making the rights into digital units and selling across the globe. If there is an automated tamper-free system, where one can sell the music and the listener can pay and buy the music, it can further improve the situation.
The primary income of a musician comes from royalties, and promoters/sponsors who organize the playback/concerts get the profit and additional revenue from advertisements. It is practically impossible to track every movement of music sales, because of the unscrupulous practices rampant in the field. Selling music online became an easy thing, since the internet has become an active music partner. It also opened doors for selling individual songs, as per the choice of the buyers. This has resulted in the slowdown of album sales, as people started buying only those singles that they want to hear frequently.
The Internet is giving an immense opportunity for musicians to cut single songs and market them online and allow people to download them. But due to large-scale unauthorized downloads, musicians face a lot of problems in keeping track of piracy. Illegal copying and downloading is the most significant challenge of the music industry (aside from the royalty issues). The latest technologies make music theft a relatively easy and cheap thing to do. The loss due to these kinds of actions is incalculable. Torrent, P2P, and CD-R technologies are instrumental in flaring up the music industry issues.
There cannot be a single solution for all of these. But, to an extent, a direct marketing system that allows an artist to sell all or part of the music by offering right shares to fans, friends, relatives, and share-investors can at least give relief to musicians. In this mechanism, the musician will also hold a share right of the music, along with the song share offered for public sales.
Selling song shares
Selling song shares is a novel concept. It requires state-of-the-art technology to meet the highest security features. The song share should be freely tradable, and it must generate royalty too. All the sales generated by the music should go to a central account. All royalties received should come to its central account, and, from there, it should go to each single share unit of the music. In this concept, the fan, share-investor, and musician all become an equal partner in the deal, and it will become a win-win situation.
Concept of Vezt
Vezt revolutionizes the music industry by introducing a new way of marketing songs and other musical products, allowing the artists to capitalize their work by selling whole or portions of their creations as per demand. In a way, the new concepts enable fans to share the ownership of their favorite songs or music albums along with their artists, which means an investor becomes a co-owner of the music title. To accomplish these objectives, Vezt uses state-of-the-art blockchain technology, for complete control of the deal, leaving no stone unturned to protect the interest of the investors who share the royalties among the ISO™ (Initial Song Offer, much like an ICO or Initial Coin Offering) holders.
The mechanism and working module
With a method such as this one, the decision of how much money needs to be raised from a song or fraction of a song shall be chosen by the artists and rights holders, which will govern the ICOs terms and conditions. During the ICO token issue, those who want to buy ICOs have to buy the required number of tokens, and the right share value received shall be transferred to the concerned artist’s account immediately.
The advantages are enormous; the sales are unrestricted and anybody including brands, artists, or fans can apply for ICO tokens. Since each song right will be offering a separate ICO, each will bear independent blockchain coding. All performance royalties from YouTube, iTunes, Pandora, Spotify, etc., are channeled from PROs (the Performing Rights Organizations) spread across 137 countries and distributed to the right share ICO holders. The token share value shall have market appreciation since the units are freely tradable on ETH exchanges in the digital world with unrestricted access.
One of the major attractions is that fans and rights buyers shall be getting a lifetime opportunity to share the right of each song or part of the song in a full token value as part of ICO ownership. It gives a fantastic opportunity to monetize the possibility either for a new song or an existing one.
Primarily, it acts as a relieving mechanism, making them stress-free with no unwanted impediments which helps them to focus on their music with full vigor and dedication. It is a healthy and meaningful way of business collaboration and benefits derived shall be shared between the artists and investors.
There are many solutions that will offer better wallet management. Blockchain technology utilizes cloud technologies for storing and managing data in the wallet, keeping all the information confidential and secure. Only bonafide members and participants can perform transactions on the platform, which confirms the security and confidentiality. The platform allows participants to create smart contracts and execute the transaction quickly and efficiently in large volumes. ISO™ is an innovative idea, and it has enormous market potential. It is going to be a trendsetter, and many shall follow VEZT’s ways shortly.
This post is part of our contributor series. It is written and published independently of TNW.