Blockchain Streaming may Revolutionize Online Music Sales

DJ Gareth Emery thinks the way musicians get paid royalties from online music sites is mired in outdated technology and wants to use Blockchain to get artists what they deserve.

Streaming services need an upgrade

According to Emery music streaming sites like Spotify and Itunes domination of online distribution suck up an undue amount of revenue, have too much influence on which artists flourish, and who never gets to be known.

“Careers can get made or broken by being in those playlists,”

So he launched Choon in a bid to right those wrongs and bring accounting transparency and fair financial distribution to an industry that has continually put the artist last.

Emery’s solution is two-fold, firstly Choon’s playlist selections will be human free. Depending instead on an algorithm to build playlists in order to eliminate bias and cronyism at the basic level.

Second is to update the process of assigning and paying royalties to artists based on how frequently their music is streamed and that is where Blockchain comes in.

Choon’s goal is to simplify the accounting process to the point where artists can easily track how often their music is played, what their royalties are and even get paid on a daily basis if they want.

“(the) way of doing royalties and accounting was basically designed in the days of jukeboxes and sheet music and has been grandfathered in across every new innovation”

The open nature of the Blockchain based system created to power Choon is such that the DJ says he would be happy to have others build from it, even Spotify if they want. Thanks to the transparency of the system Choon will pay 80% of its revenue back to artists as royalties. The potentially bad news is that the 80% royalties are artists will receive are going to be paid out in Notes.

Good royalties, bad Notes?

Not surprisingly a company built on the back of Blockchain plans to pay artists in its own Ethereum based cryptocurrency called Notes.

The streaming service plans on launching Notes as an ICO after which it will become freely tradable. Emery understands that a lot of artists may be deterred by being paid in an unproven cryptocurrency at a time when the market is going through some volatile adjustments.

It’s no surprise that the service will launch more on the level of SoundCloud than Spotify with about 400 artists who own their music. To this Emery says he’s not interested in attracting the stars of today, he wants the hit-makers of tomorrow.

Subscribe to our newsletter

A new blockchain-based platform is looking to raise $20 million to develop a music streaming platform.

Opus, as the new platform is titled, proposes to bring a traceable and transparent online streaming service for all the musicians. The mission is to create a model that eliminates intermediaries, offer works’ traceability, and ensures transparency in the management and allocation of creative rights and revenues.

The Opus platform is introduced at a time when musicians around the globe are getting unfair-to-no payments for their hard work. Each song sold on an online music streaming website generates great revenue, but the artists – especially the new ones – receive only a small chunk from it. Centralized models are designed to cut back a considerable portion for themselves whilst leaving artists to live on pennies.

Opus, on the other hand, replaces centralized trusted parties with an automated system. The platform uses low latency IPFS as a storage layer, which connects computing devices with the same file system to store songs permanently and transparently. At the same time, an additional layer based on Ethereum handles all the transactions in the most transparent manner.

“Music files are encrypted and uploaded to the IPFS swarm, and the decryption keys are stored on a smart contract and referenced on a Universal Music Registry Number (UMRN), that resides as a JSON file within the IPFS system,” states Opus.

“The system annexes individual music tracks and effectively ensures permanent ownership.”

Opus has already released a beta-platform for the project which can be touched and tested by the interested participants. The developers intend to launch a full-fledged model in the near future; they have already announced the crowdsale of their native OPT tokens, a process that will ensure a steady influx of investment into the project while rewarding the OPT holders with the stakes in the Opus platform.

The OPT Crowdsale

Opus plans to sell a total of 900 million OPT tokens while eyeing a minimum fundraiser of $20 million. The crowdsale period has already started on July 23rd and will run until August 20th in three consecutive phases. The first phase, which is ‘LIVE’ at the time of writing, is called Angel Funders; it offers up to 1000 additional OPT tokens in bonus, and the rate per 8000 OPT tokens remains at 1 ETH.

The second phase, called Early Bird, charges investor 1 ETH for 7500 OPT tokens, whilst the bonus gets reduced to 500 OPT. The third and the final phase is called ‘Standard Phase’, which has no bonus and sells 7000 OPT tokens per ETH. That being said, early investors have advantages over the ones who purchase OPT tokens late. Opus plans to burn the unsold tokens.

Opus plans to burn the unsold tokens.

If you wish to contribute with ETH/BTC, follow Opus on their website here.