Posted: Apr 25, 2023
music streaming services make money music business distribution blockchain starfarm
**Guest post by StarFarm, Streaming That Makes Sense for the Artist.
"If there’s one thing that has been a constant in the music industry, it’s change. From the initial format, the 78 RPM record, which was created in the early 1900’s to today’s streaming platforms, the music business has undergone radical changes that have presented both new opportunities as well as challenges. Today’s music environment is no different and if anything, the challenges have never been greater for musicians. To better understand, a brief history of music distribution may be helpful.
Streaming owes its existence to the internet. In 1999, a peer-to-peer music sharing website named, Napster, was created to allow users to share MP3 files of songs amongst one another for free. Key to its success was the word, free. The music industry would never be the same.
The obvious ethical issues regarding the copyright and ownership of works by musicians brought almost immediate concern to almost every established music business in the industry. Shortly after launching, the Recording Industry Association of America along with several musical giants filed lawsuits against Napster. By 2001 Napster was forced to shut down. Regardless, the traditional financial genie was out of the bottle and poised to never return.
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In 2003, Apple changed the game yet again with the introduction of the iTunes Store and their flagship MP3 player, the iPod. The simplicity and sleekness of Apple’s offering brought the industry one step closer to a viable digital future.
In 2005 music streaming took another step with the introduction of Pandora, an online streaming service that recommended new music based on a user’s listening history. This proved very appealing to consumers; eventually, Pandora would influence several modern streaming services, including Spotify and Apple Music.
While streaming has provided many positive aspects for the music industry, it has also brought on less-than-ideal conditions for the people that make the industry possible; the musicians. Streaming platforms have business models that permit them to pay only meager sums per play. As an example, it’s estimated, but not confirmed, that Spotify pays only $.003 per stream. So, approximately $3 for every 1000 plays. In addition, their accounting practices are complex, opaque, and variable at each company's discretion. To make matters worse, most independent artists rely on a middleman distributor to get their music added to streaming platforms. These companies don’t work for free. So whatever they receive from the platforms, artists will have to share another percentage with their distributors. In addition, no platform is ever fully auditable by any artist. Another not so well known problem is that most artists have to wait six months or more to receive payment. It takes time for the platforms to account for all of the streaming activity and once they do, they pass that information on to the distributors who also need time to sort through the data.
In short, depending on streaming income to assist with paying bills and keeping a musician in a position to not depend on a day job is unrealistic. But there is hope and that hope comes in the form of technology. Blockchain technology to be more precise.
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Blockchain technology has the potential to revolutionize the music streaming industry by providing a secure and transparent platform for musicians and music streaming platforms alike. By using blockchain, musicians can get paid directly for their work without having to rely on intermediaries like record labels or music publishing organizations. Furthermore, blockchain-based music streaming platforms can offer greater transparency in terms of royalty payments and usage rights. This could help to ensure that all parties involved in the streaming process are fairly compensated for their work. The music industry has a long and sorted history of abusing artists through shady accounting practices. Blockchain technology removes this possibility. Additionally, blockchain technology can also be used to improve security, as it provides a tamper-proof ledger that cannot be manipulated or corrupted. This could help protect users from malicious actors who may try to steal or modify data stored on the platform.
Another way to improve the current music streaming financial environment is to hand over more control to the artist. This can be achieved in a variety of ways.
Pay-per-play streaming is a more honest and transparent way for consumers to stream music. Pay-per-play music streaming platforms offer a unique and superior way to stream music compared to traditional streaming services. Rather than paying a flat fee for unlimited access to music, pay-per-play platforms allow users to pay for each song they listen to, making it easier and more cost-effective for people who don't listen to a lot of music. Additionally, pay-per-play streaming services are more artist-friendly as they do not require artists to give up any of their rights or royalties in order to be featured on the platform. This allows artists more freedom and control over their own content while still providing users with access to great music. Unlike traditional platforms, pay-per-pay streaming allows users to pay for only the songs they want to listen to, rather than paying a subscription fee for access to an entire library. This makes it more cost-effective and convenient for users who don't need access to the entire library of songs.
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Artist Driven Pricing
The ability for artists to name their own price for streaming of their content is a game-changer in the music industry. This method of pricing allows artists to set rates that reflect the true value of their work, rather than relying on the one-size-fits-all approach used by current streaming platforms. Streaming content has become an increasingly popular way for artists to reach their fans and monetize their work. With the ability to name their own price, artists have more control over the success of their content than ever before. This method of pricing allows the artist to set a fair price for streaming that reflects the value of their work while also providing fans with an affordable way to access it.
This method of pricing is in stark contrast to current streaming platforms, which often take a large percentage of profits from streaming sales. By allowing artists to name their own price, they are able to keep more of their earnings and gain greater control over how much they make from each stream. This could be a huge benefit for independent musicians who often struggle with visibility and monetization on traditional streaming platforms.
This method of payment is more efficient than traditional methods, as it allows artists to receive payments in real time without having to wait for royalties or other forms of delayed payments. This provides an incentive for artists to create more music and encourages them to remain active in the industry. Furthermore, this method eliminates the need for third-party intermediaries such as record labels, allowing artists to keep more of their earnings. As a result, this payment model has become increasingly popular among independent musicians who are looking for a more direct way to monetize their work. By understanding the benefits of this emerging model, musicians can make an informed decision about the best way to monetize their music.
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Giving artists more control over their streaming income is a great way to ensure that they are fairly compensated for their work. By utilizing pay-per-play models, blockchain technology, and other artist-friendly pricing structures, artists can finally reap the rewards of their hard work. Furthermore, these models help reduce the cost of distribution fees and enable artists to receive immediate payments for their streams. This provides an incentive for artists to produce quality content and encourages them to continue creating music that resonates with listeners."
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StarFarm is an artist-driven music streaming platform that has revolutionized the way artists monetize their work. With its pay-per-play model, blockchain technology, and innovative pricing structure, artists can now get paid for their music directly from their fans.
StarFarm allows artists to set their own prices for their music and offers cheaper distribution fees than other platforms. This makes it easier for them to get paid quickly and directly from fans, without having to worry about expensive fees or waiting weeks or months for payments. Additionally, with its cutting-edge blockchain technology, StarFarm provides a secure platform where all transactions are stored on the blockchain, ensuring the safety of both artist and fan data.
All said and done, a new distribution alternative that aims to help artists is emerging.