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The Impact of Blockchain Technology on the Music Industry

  • Kim, Kenneth Chi Ho (Department of Culture Contents, Hanyang University)
  • Received : 2019.03.05
  • Accepted : 2019.03.15
  • Published : 2019.03.31

Abstract

We have reviewed the potential impact of blockchain technology on the music industry by analyzing the views of academia and the industry experts. The music industry had rapid changes from the physical market to the digital market in the past decades. The consumers download and stream music online and mobile during the digital dominant market. While streaming music has been recently growing at a fast rate, fair distribution of revenue to the artists continues to be an issue. Some industry experts believe that the issue of fair distribution of revenue to the artist may be resolved using blockchain technology, while some are skeptical about the application or the duration of impact. The blockchain may enhance speedier payment using smart contracts, provide additional revenue and promote the music if excellent fan support is achieved. The positive impact on the music industry may only be possible if there are detailed consideration of the industry and careful understanding of the customers.

Keywords

Blockchain;Music industry;Digital music;Music streaming;Smart contract;Cryptocurrency

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Figure 1. Global Music Industry Market Size and Growth Rate (PwC 2017)

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Figure 2. Percentage of Digital Share in Music Industry (IFPI 2017)

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Figure 3. Recorded music supply chain after the digital era for major artists and blockchain technology (Hosoi, et al. 2015, and Sitonio, et al. 2018)

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Figure 4. Music Specification on Blockchain Network, Choon (Choon.co, 2019)

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