Tuning into Blockchain: Challenges and Opportunities of Blockchain-Based Music Platforms

Blockchain technology is an intensely discussed enabler of large-scale societal and economic change, but the circumstances under which different industries succeed or fail in implementing blockchain are not yet sufficiently understood. One example is the music industry, in which the promise of blockchain is not yet fulfilled, despite a growing number of ambitious blockchain providers. This paper explores the challenges and opportunities of blockchain-based music platforms. Grounded in an exploratory qualitative case study within the music industry at seven organizations and related literature, we identify three main challenges for digital music business, namely: 1) Inconsistent and incomplete music metadata, 2) Historically grown complex licensing structures, and 3) Inefficient and non-transparent royalty payouts. We provide insight into how blockchain may address these challenges by means of a decentralized global song database that allows for automatic royalty payouts. Our results inform researchers and practitioners how the music industry may create value from blockchain-based music platforms. We offer a nuanced and balanced view on value creation with blockchain and outline a path for further research and development on blockchain-based solutions for the music industry.

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