Blockchain and the Disintermediation of Music
The “Downtrodden Artist Stands Up to Big Bad Music Mogul” trope makes for a heartwarming plot line in movies and television, but how often does the artist prevail in real life? The music industry is plagued by issues with content management, rights management, and royalty distribution, yet legislative efforts such as the Music Modernization Act of 2018 fail to provide meaningful solutions because they continue to uphold the power structure in which the Big Bad intermediary thrives. As an alternative, this chapter argues for the disintermediation of the music industry, and consequent empowerment of the individual content creator, through the use of blockchain technology. It discusses the ways in which smart contracts, blockchain ledgers, and a global copyright database could help to support more efficient and secure payments to artists, track usage and sales data, and protect copyrights, all without the need for traditional intermediary roles. In effect, this chapter provides a technical yet comprehensive explanation of the ways in which—as well as the policy implications of—implementing decentralized blockchain technology can help maximize the value of music for creators, improve the music experience for consumers, and reduce friction, waste, and fraud in the music industry.