Listen to the music – earbuds. – Photo: © Tim Sandle
After a number of pilot projects on publishing and performing rights, Revelator has launched a decentralized music rights site called “Artist Wallet”, which is hosted on the Original Works platform.
The Artist Wallet platform uses decentralized financial, non-fungible tokens (NFT) and blockchain technology to allow money to flow directly into the rightsholders’ undocumented wallets. This is part of the growing number of calls for a fairer deal for music artists. Usually, a fair deal for artists comes with a lot of stumbling blocks and pain points.
Because of the way music is distributed, a digital approach is required:
50% from digital income
34% of sales of physical formats (CDs, vinyl, cassettes)
14% from performance rights (radio, shows, etc.)
2% from sync revenue (movies and ad syncs)
Urging music providers to give artists a fairer deal was the subject of a recent article in the Digital Journal in which we quoted that the reforms of singer-songwriter Billy Bragg “began with the industry-wide introduction of 50/50 tariff sharing between artists and labels should begin all digital recordings, whether heritage or brand new. Introducing a copyright ownership restriction would give artists the right to reclaim ownership of their work after 20 years. “
READ MORE: Too Few Beats Per Minute? Time to pay artists fairly on streaming services
As reported by Rolling Stone, the current state of affairs means that many new artists “sign with a non-traditional record label, test new release strategies and try to find their own way in other ways”. This in itself, although it is sometimes better for the musician in question, does not mean that the best possible offer is available to the artist.
The Artist Wallet has two main functions behind the decentralized business-to-business backend application. The first is a feature called the “daily license payout”. This is a process that enables direct payout between authors and rights holders, where artists not only receive a daily payment, but also give the artist more control and transparency of the payment process through a tracking process.
The second function is the ability to create and manage smart contracts. This will reduce the number of strep required and potentially reduce the billing process.
The strength is that this process enables rights owners to register and tokenize their creative intellectual property. In addition, the wallet can be used to manage metadata, assign splits, request or send payments and collect license fees on a daily basis.
However, such a system will only work effectively if it is adopted by a significant number of artists, labels and rights holders.