Music Industry Misfortune: The Transformation is Here with bitcoin
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The Dark Side of the Music Industry
The music industry has a long history of preying on the very artists on which its existence depends. In the early days of recorded music, artists were plagued by unfavorable contracts that deprived them of the financial rewards of their hard work while record labels raked in all the profits. But the mistreatment has evolved over time, with the rise of Live Nation Entertainment, a near monopoly in the ticketing market, and control over event venues worldwide.
One of the major culprits in the industry is Ticketmaster, which has faced criticism from musicians and fans alike for its hidden fees. In 1994, Pearl Jam accused Ticketmaster of being a monopoly, but no action was taken. However, in 2003, Ticketmaster lost a lawsuit that resulted in a $400 million payout to ticket buyers. Despite this, issues with Ticketmaster persist, as seen with the recent lawsuit filed by Swifties over Taylor Swift’s sold-out tour.
Live Nation Entertainment serves as a promoter, venue owner, and ticketing company, giving artists little say in the pricing and transparency of their ticket sales. In many cases, artists receive only a fraction of the face value of their tickets. These challenges have plagued musicians for years, as record labels and industry bigwigs exploit their talents for profit.
The Shift to a New Paradigm
Over time, artists have relied heavily on touring to make money, selling merchandise and tickets to support their careers. But ticket sales have never been a reliable source of income, and record label contracts have historically been unfavorable for artists.
The music industry’s problems persist, but they have shifted from traditional record labels to the centralized nature of the live music industry, exacerbated by the digitization of music through streaming platforms. Streaming platforms like Spotify and TIDAL pay artists only fractions of a cent per stream, making it difficult for all but the most famous artists to earn a living. These platforms, including YouTube, simply do not offer lucrative compensation for artists.
However, the introduction of bitcoin, a decentralized digital currency, brings new opportunities to reshape the music industry. By pairing bitcoin with digitized music, artists can potentially revolutionize the way they monetize their work.
Introducing the Value-4-Value Model
The value-for-value model presents a game-changing approach to monetizing creative works in a world abundant with content. It allows viewers to directly contribute any amount of money to content creators voluntarily. The Lightning Network, a bitcoin scaling solution, enables instant and effortless micropayments, making this model feasible.
This model stands in contrast to subscription-based platforms, where users must commit to monthly or annual payments to access content. With the value-for-value model, users can make small payments, such as $0.10, through scanning a QR code, opening up possibilities for micropayments that were previously impossible with traditional financial systems.
Podcasts on podcasting 2.0 apps like Fountain have already embraced this model, allowing podcasters to receive bitcoin payments directly from users on a per-minute basis. Additionally, social media protocols like Nostr enable Lightning wallet integration, facilitating bitcoin transactions for popular posts. Now, Wavlake is bringing this concept to the music streaming world, providing musicians with a platform to directly monetize their work using the value-for-value economy.
Reimagining the Music Business with Wavlake
Wavlake, a revolutionary music streaming platform, aims to rethink the global music business and put artists in control of their own earnings. The founders of Wavlake designed the platform to empower musicians by allowing them to receive direct bitcoin payments from listeners and fans.
This new streaming service allows audiences to “boost” songs by setting a rate and sending bitcoin to artists as they listen and enjoy specific sections of music. Musicians like Joe Martin have already found value in this direct support from listeners, recognizing that platforms like Wavlake provide content creators with the tools to regain control over their work.
bitcoin, as a decentralized currency, empowers artists with full sovereignty over their finances. Through the Lightning Network and the value-for-value model, musicians now have the means to truly own the fruits of their labor. bitcoin micropayments pave the way for a new era of sending value over the internet, removing the barriers of geographical borders and local currencies.
The music industry is at the brink of transformation, and with bitcoin leading the way, artists can finally reclaim their rightful share of the profits.
### News source: bitcoinmagazine.com