Current State of Music and the Web3

present-state-ofmusic-and-web3

In the last decade, there has been a massive increase in the acceptance and implementation of blockchain-based technologies worldwide. Coinciding with the rise in popularity and broad usage of cryptocurrencies, an ecosystem of digital collectibles has emerged that benefits from decentralisation in the creative industries.

Specifically, the music industry is undergoing a period of constant and ongoing innovation, with various communities emerging around a shared belief in these rapidly evolving technologies and optimism for a future in which artists, fans, and collectors gradually merge into a single entity.

We’re now constructing web3, which leads to ideological discussions, notably around legacy music business systems. This conflict between new inventive ways and more conventional legacy approaches is resulting in unparalleled invention and ideas, making the music tech sector an attractive market to monitor.

The inaugural State of Things Report focuses on initiatives, trends, and processes in the music3 domain, as well as future ramifications and concerns.

Property-rights restructuring

In the previous year, an inventive approach has embedded the right to earn music royalties from an artist’s song inside a digital collectable’s practical value. Royal’s concept is currently at the forefront of community development in the music metaverse, with several firms and initiatives working on melding monetary connections between artists and fans.

Many of these NFTs are listed on OpenSea, a significant exchange. Despite being original, the notion introduces new issues for artists and listeners.

These concerns exist because new ownership offers a new set of challenges, specifically regarding property rights and how they manifest in contemporary contractualization. We now have digital blockchain ownership instead of a conventional transfer or allotment of music royalty rights.

The new idea of digital ownership doesn’t entirely correlate to existing intellectual property and copyright rules, creating a murky legal area. Future ramifications of these breakthroughs include:

Contractualization will evolve gradually. We’re already seeing legal fights between record companies and big-name musicians over NFTs and digital collectibles.

How is money from an NFT divided between the artist and the label, given pre-agreed splits on master recording rights, songwriting rights, publishing rights, synchronisation rights, etc.?

What kind of transfer is this? What if an artist sells NFTs that offer fans music royalties? How does this relate to typical label-artist copyright sharing?

Without contractualization, digital blockchain ownership may lead to many challenges and disagreements, which will be handled later. This affects record companies, artists, and platforms, and further regulation looks probable.

Unsigned/independent performers benefit short-term. As large record labels resolve contractual problems, smaller artists will have greater freedom and less legal friction to create digital collectibles, mainly if royalty rights are at stake.

The web3 development process is still in its infancy, and as the endorsement and popularity of the technology grows, so will creativity and experimentation – both in terms of sorts of goods and forms of digital collectibles. This is essential to bear in mind. The inevitable outcome of these processes is the ongoing growth and construction of tightly-connected digital communities in the music technology sector.


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