Wednesday W.O.W - Web3 & The Music Industry

[5 min read] Your mid-week bite sized treat on emerging tech on our journey to the Metaverse. Learn about how Web3 is shaping the future of music making it better for artists and fans alike

Image conjured in Midjourney, prompt: “music notes travelling through cyberspace interconnected by digital blockchains --ar 14:10 --no bitcoin”

A nibble of knowledge in your inbox every Wednesday with a simple format:

🇼 What the technology is

🇴 Objective(s) - what is it trying to achieve, with some examples

🇼 Why it is important to users as well as businesses & brands.

This is week 28 of the 520 weeks of writing I have committed to, a decade of documenting our physical and digital lives converge.

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🇼 What is Music in Web3?

In a world where technology continues to reshape industries, Web3 has the potential to be a game-changer for the music industry. Let's dive in.

Web3 refresher: Web3 refers to the next evolution of the internet, where decentralised networks and blockchain technology take center stage. It represents a paradigm shift from the traditional centralised web, offering new possibilities and opportunities for artists, creators, and music enthusiasts. (More in my prev post here)

Web3 leverages technology to revolutionise the way music is created, distributed, and experienced.

In the age of music streaming services like Spotify, are we losing the deeper connections we once had with music and artists? According to Rob Duffin, co-founder of Mixtape Social, that seems to be the case. Mixtape Social is a community-based music listening app that aims to restore the sense of ownership and personal connection with songs. It allows users to tag their favorite tunes with memories and stories, creating a deeper connection between listeners and artists.

Mixtape Social is a prime example of Music in Web3, as it leverages the concept of the creator economy and blockchain technology. The app uses a crypto token called Mixtape Token to allow fans to compensate the artists they follow. These tokens can also unlock exclusive content and will have even more functionality in the future. The open and collaborative nature of Web3 provides the ideal platform for creating social sharing and listening conditions that foster a stronger connection between listeners and artists.

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🇴 What objectives is Music in Web3 trying to achieve?

Web3 music is driven by a set of objectives that aim to transform the music industry. Let's explore some of these objectives with real-world examples:

1. Cut out the middlemen: Just as blockchain was originally intended to eliminate the need for intermediaries in financial services, Web3 aims to do the same in the music industry. Traditionally, middlemen like record companies and streaming services have taken hefty cuts from artists, leaving them with less money. With blockchain, cryptocurrencies, and NFTs, artists can have more control over their content and receive fair compensation for their work. Platforms and applications built on Web3 enable the use of smart contracts, which automatically pay royalties to artists as agreed upon in their contracts. This eliminates the need for intermediaries and ensures that artists have a say in how their work is consumed and enjoyed.

2. Empowering artists: Web3 music seeks to empower artists by providing them with more control, ownership, and financial opportunities. Warner Music Group (WMG), a prominent entertainment company, has embraced Web3 by partnering with metaverse platforms like The Sandbox and blockchain gaming platform Splinterlands. This move allows artists to explore new avenues and reach a broader audience.

3. Fan engagement and monetisation: Web3 music enables artists to deepen their connection with fans and monetise their creativity in innovative ways. For instance, American rapper Saweetie's virtual Super Bowl experience in Roblox garnered millions of views. The event not only provided a unique digital concert but also offered digital merchandise for fans to purchase, creating a memorable and novel revenue-generating opportunity.

4. Community collaboration: Web3 music encourages collaboration between artists and their communities. By involving fans in the creation process, artists can foster a sense of belonging and co-creation. It goes beyond simply releasing music and allows for deeper engagement through physical spaces, discord channels, and social media platforms. Check our Audius as an example.

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🇼 Why is Web3 likely to have an impact on the future of the music industry?

The integration of Web3 into the music industry holds immense potential for shaping its future. Here's why:

1. Direct artist-fan relationships: Web3 music eliminates intermediaries, enabling direct connections between artists and fans. This direct relationship strengthens the bond and creates a more personalised and authentic music experience.

2. New revenue streams: Web3 music opens up new avenues for artists to monetise their work. Through NFTs, artists can sell unique digital collectibles, offer exclusive content, and receive direct support from their fans. This creates a sustainable income source outside of traditional models.

3. Tokenised ownership of royalty streams: These allow fans to invest in new music and receive a share of the royalty revenue when the music is exploited. This opens up new possibilities for artists to monetise their work and fans to support the artists they love

4. Enhanced fan experiences: With Web3, music becomes more than just a listening experience. Virtual concerts, immersive metaverse experiences, and interactive collaborations redefine how fans engage with music. It bridges geographical boundaries and provides a platform for global participation.

5. Democratization of the industry: Web3 levels the playing field, allowing emerging artists to gain recognition and success without relying solely on industry gatekeepers. It provides equal opportunities for talent to shine, fostering a more inclusive and diverse music ecosystem.

In conclusion, Web3 music represents a transformative force that reimagines the music industry. By embracing decentralization, NFTs, and immersive experiences, artists can connect with fans on a deeper level while exploring new avenues for creativity and financial growth.

The video below presents some great points to ponder as well if you want more:

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That’s all for this week! If you have any organisations in mind that could benefit from learning about emerging technology, be sure to reach out. Educational workshops are one of many consulting services I offer.

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