I found myself back in Ingolstadt to talk to an old friend about music production and the music business. Things are happening in this field, based on a new technology.

The music industry has changed dramatically in recent years, particularly due to the rise of music streaming services like Spotify and Apple Music. Another revolutionary development that will impact the music industry is the use of blockchain technology and non-fungible tokens (NFTs).

Blockchain is a secure and decentralized database that enables the management and transfer of information and digital assets without the need for a central authority. NFTs are unique digital assets created and managed on the blockchain.

Changes for the music industry

In the context of music streaming, this means that musicians and artists gain direct access to their fans and listeners and can sell their music directly without the need for an intermediary. Furthermore, they can ensure that they actually get paid for their music, as the transactions are traceable on the blockchain.

Another advantage of NFTs in music streaming is that they offer musicians and artists more control and flexibility in managing their rights and revenue streams. For example, they can decide whether to sell their music as a limited edition or make it available in unlimited quantities.

Overall, the use of blockchain and NFTs in music streaming shows great potential to transform the music industry and give musicians and artists more opportunities and control. However, it remains unclear how these technologies will be implemented in practice and whether they can establish themselves as sustainable solutions for the music industry.

Record labels will also face challenges, as artists and musicians have been selling their entire back catalogs to hedge funds for several years now. Conversely, if this new distribution channel takes hold, record labels will initially be left empty-handed and, in the next step, will suffer a fate similar to that of the dinosaurs. Young and emerging artists will prefer to sell their music directly from the outset, without a bloated promotion and distribution apparatus that leaves them with only crumbs and wants to take a cut of everything.

Conclusion

Although many questions and challenges remain regarding the use of blockchain and NFTs in music streaming, the development shows promising prospects for the future of the music industry. It will be interesting to see how the established streaming providers position themselves.

Exciting times that will also be relevant for me, and I'm looking forward to them, as many new opportunities will open up here again, in all areas...