Can Web3 reshape the music industry chain?
Original title: "Can Web3 reshape the music industry chain"
Original source: Euterpe
June 22, Euterpe Organized a discussion on "Can Web3 reshape the music industry chain" in Twitter Space.
Invited to Charles (@eut_io, Euterpe co-founder), Yi Nengjing (@AnnieYi0304, well-known singer), Cao Yin (@CaoArmand, encryption KOL), Eason (@GaoSen, WAGMI Ventures founding partner), Huang Yunqi (@monkeyking_s, Async Art consultant Claire) and five guests participated in the discussion, moderated by Leon (@Leonpowerwind, TYPE V DAO).
The following is an overview of the condensed version of the Euterpe seminar:
Host Leon@Leonpowerwind:
Although crypto is relatively in a bear market, But I can still see that many friends are constantly entering the web3 industry. As a builder, I feel (the impact of the bear market) is not bad, so today we specially invited builders in the industry to talk about whether web3 and the music industry can have some good chemical reactions, (whether) can help and Reshape the value distribution of the music industry chain and help creators get more cakes.
First of all, let the guests introduce themselves first.
伊能静@AnnieYi0304:
Hello everyone, New York is too busy. This year NFT NYC actually invited many DJs to the scene to play discs. It is indeed closely related to music. I am actually a practitioner in the traditional music industry myself, so today I am very happy to share with you my feelings about the future development of music NFT.
Cao Yin@CaoArmand:
< /p>
Hello everyone, I am a collector of encrypted art and have invested in some encrypted art platforms. One of the platforms I invested in today is KnownOrigin, which has just been acquired by eBay. This is a very happy thing. Okay, let's leave it to the other speakers.
Charles @eut_io :
I am also in New York now (participating in the NFT NYC event), thank you very much for the invitation of the host, everyone came to communicate with us early in the morning or very late. I come from a legal background. I have been doing venture capital in Silicon Valley before, and then I worked on this project with a few friends from Stanford. Most of us come from the copyright industry, some are lawyers in the copyright industry, some are producers, and some are engineers. Everyone thinks that blockchain technology can provide some solutions for the copyright industry. Therefore, our design idea is IP-NFT as a service. We hope that through IP-NFT, musicians and practitioners in the film and television industry can release the copyright of their works and share them with fans to create a better ecosystem. I look forward to communicating with you today, thank you.
Eason@GaoSen:
Hello everyone, it is a great honor to be here to participate in this space. I'm Eason from WAGMi Ventures. Our WAGMi Ventures was converted from the VC of CoinNess. We have invested in many web3 protocols in CoinNess before, including IOST, celer, Wootrade, Platon, Metis. Our fund was established in January. After its establishment, we have also invested in many NFT projects, including many domestic web2 to web3 projects, including cheers up. Some other big tracks we are looking at are related to the entire web3 ecology, including some applications, some DAOs, and some ecosystems. Today I am very grateful to the organizers and organizers for letting us discuss together, first, how web3 can reshape the music industry; second, look at the potential opportunities of NFT in web3.
Claire @monkeyking_s:
It is a great pleasure to participate in this space as a participant of TYPE V DAO and a consultant of ASYNC ART in China. In fact, as Euterpe mentioned just now, we are a builder in the NFT field. What we are doing now is to combine music and visual creation to create a programmable tool. Ultimately, we hope that all artists who do not understand technology can use this technology to create their own encrypted art. I am very happy to chat with you about the topic of music and web3.
Host Leon@Leonpowerwind:
Thank you for your introduction, then we will enter today's topic - can web3 reshape the music industry chain?
Because Teacher Yi Nengjing will leave earlier later, I will cue Teacher Yi Nengjing first. Teacher Yi Nengjing used to be a practitioner in the traditional music industry, and has entered the NFT industry across borders in recent months, so I would like to know what problems do you think exist in the traditional music industry, which can be improved through web3 or blockchain technology?
伊能静@AnnieYi0304:
1. The operation mode of the traditional music industry. Musicians first need to be discovered by the economic company. After signing the contract, the company uses the music producer, planner, AMR (Artist Manager), and three-way assistance to find out the characteristics of the musician. For example, in the early days of Rolling Stone Records, many artists’ life experiences were used to excavate and create. At that time, Xin Xiaoqi wrote a song "Taste" because she was broken in love.
Warner and Rolling Stone are two systems, and Warner is more like an industrial chain. They use accurate market calculations to put the yearning for youth, life Different stages (combined) create a sense of resonance in the market, rather than starting from the individual young idols.
2. After the record company produced the song, the singer began to record in the studio, take pictures, select the album cover, create the album copywriting, and finally do market planning and release album.
Summary: The traditional recording industry uses its professional team and powerful resources to greatly increase the success rate of new singers.
Change: The rise of Spotify is similar to the early music DAO. Its founders found that niche musicians uploaded videos of their songs on YouTube with very low hits, and only when the covers of big-name stars or even covers were better than the original songs could they be liked and heard. So Snotify decided to help niche musicians publish songs and manage copyrights. At that time, the songs of niche musicians in Norway and Finland were particularly popular in the global market, so Spotify became the go-to place for niche musicians in an instant. At this time, they decided to return the greatest ownership of music copyright to musicians, so that they no longer just draw 10-30% of royalties, but bear the music production costs themselves, and decide the release time of albums and singles by themselves. It helps to collect the royalties generated by album copyrights around the world, which makes it the world's largest copyright holding company in an instant.
We hope that after theirsverse launch, we can use fragmented narrative methods for music in the future, and have the opportunity to refer to the Spotify method to become own music label.
Host Leon@Leonpowerwind:
Due to the complexity of the traditional music industry chain process and numerous intermediate links, musicians can only collect 10-30% royalties, but Spotify’s innovative approach has reshaped the The music industry chain provides opportunities for long-tail artists.
But in the world of web2, Spotify as a platform and a listed company will still eat a large part of the bonus, and the new business model provided by web3 or It is said that under the mode of community-led content creators, it is possible for content creators to get a larger share. Because they can be popular without the help of platforms and traditional industry chains, so Boss Charles, I would like to hear how you, as a web3 music platform, solve this problem.
Charles @eut_io:
Packaging a musician in the traditional music industry requires the record company to provide a lot of resources, pay a lot of costs, and take high risks, so the record company also takes a large share of the royalties in this case.
Because many colleagues in our team came from the copyright industry, the original intention of the project design at that time was to feel that the intermediate costs of the entire music industry and the copyright industry were too high, so we Just think about which links can be improved through technology.
1. Regarding financing, one of the functions of our products is that after musicians upload their works to the platform, they can Help him generate copyright NFT, he can tokenize his copyright, and sell him to different investors and fans in different shares and in the form of auction. In this way, for musicians, they can decide how to distribute the benefits of financing, and can better decide the copyrights they want to sell or control; for record companies, the financing link can be opened to a wider market through NFT , reducing the financial risks borne by record companies, allowing them to specialize in the fields of music production, artist packaging and promotion that they are good at.
2. Regarding the publication of works, in the web2 era, a lot of data and value are in the hands of the platform, but the decentralization of web3 The platform can be removed so that the participants in the ecology can directly own the value. The original fans can only listen to songs on the platform and do not get any returns, but we use blockchain to allow part of the income of musicians to interact with fans, so that fans can get a certain token return. For example, in the process of listening, sharing, and voting for music works, fans can get tokens. When everyone becomes an NFT holder, everyone will change from passive consumption to active ecological participation and benefit sharing, and their interests will become highly consistent. In this way, there will be no need for some copyright enforcement in the future, and everyone will automatically use the genuine version instead of the pirated version.
3. Regarding the collection and distribution of royalties, a large amount of intermediate fees in the traditional music industry are spent on collection societies. Some middlemen and collective management organizations are collecting royalties, which will generate a lot of personnel and administrative costs. Our product design completes the collection and distribution of various royalties in the future through smart contracts, which can greatly improve efficiency, reduce costs, allow artists to earn higher income, and fans can also get a certain return.
Host Leon@Leonpowerwind:
It is also a platform. Compared with the web2 platform, as a web3 platform, for music creators, how much can they get, how much can fans get, and how much can the platform itself get?
Charles @eut_io:
Our products are divided into two functions:
1. Financing/transaction function
When an artist wants to issue copyright NFT, there will be a pricing demand. Our platform uses the auction model of two Stanford Business School professors who won the Nobel Prize to help artists complete price discovery and properly price copyright NFT. It is not necessary to auction all of the auctions, but only a part of them. We will charge a 10% handling fee for this process, and musicians can get 90%.
The copyright NFT that has not been auctioned can continue to be sold, and the way to continue to sell can be to trade in the secondary market. We charge a 1% handling fee for this process, and musicians get 99%. At the same time, as a web3 company, we will use the fees we receive to support our token ecology and community development.
2, socialfi function
This part is made of music It is 100% managed by people or NFT holders. Musicians or NFT holders can decide the percentage to share with fans. For example, as a brand-new musician who has not been discovered by Bole, and hopes to attract more fans’ attention and help him grow, he can set his socialfi token ratio to 90% for fans, and only take 10% for himself. But for a well-known and top musician, if he feels that his songs already have their own traffic, he can also choose to set 90% in his own hands and 10% to share with fans.
In this way, there will be many choices for fans. When a song is very good, fans may not care how many tokens they can get when listening and sharing, and listen to the song simply because they like it. For songs and musicians that fans are completely unfamiliar with, due to the high proportion of tokens configured, fans may also want to give it a try. This mechanism can help discover more newcomers and new music.
Host Leon@Leonpowerwind:
Thank you Mr. Charles for sharing. I would like to ask Mr. Cao Yin, because besides being an investor, Mr. Cao Yin is also very experienced in the direction of NFT. What do you think of the Euterpe model? What kind of opportunities do you see for the combination of web3 and the music industry chain?
Cao Yin@CaoArmand:
< /p>
There are many resonances and similarities between Web3 and music, because they are all for the public. This is very different from visual art, which emphasizes possession. For example, many visual works of art will leave the view of public exhibitions after being auctioned off to ensure that only one person owns these works.
But the music has never been heard before. This song is exclusive to us and is not allowed to listen. On the contrary, everyone is willing to promote and let more people know the musicians they admire and appreciate and their works, so we can see the existence of communities like fan circles or fans in the music industry , but in the field of visual arts there are very few so-called fans.
But the problem lies in music. It is not like visual factors. Our eyes, as a sense organ, are actually very fast in processing and analyzing , able to capture visual art works in a very short period of time, or some very constructed things in the design. But because music is listened to every second and beat, it is difficult to grasp, so it is relatively difficult in the music industry to have a melody that everyone can remember in the first second. Of course, once you remember a musical melody, it's hard to forget it, so there are often a lot of brainwashing divine songs. This is actually a characteristic of music. So I personally think that there is a good opportunity for the combination of the music industry and web3, but we must think about the mode of combination. Now I see that there are many copyright NFT replacements, or directly turning music works into NFTs, but at present, more time is needed to verify the feasibility of these models.
I am very optimistic about how NFT can combine other multimedia art and music, such as visual art plus music. After entering the era of cultural fast food, the human brain responds very quickly to stimuli, and it is necessary to grab attention within 3 seconds. So, how can NFT combine those very eye-catching but relatively short visual art works with auditory works within 15 seconds or 30 seconds to one minute.
Host Leon@Leonpowerwind:
In the world of Web3, especially in the NFT community, vibe (community atmosphere) is very important. And musicians, especially DJs are very good at creating atmosphere, so they can easily form their own fan groups and community consensus. I would like to ask for a while what are the advantages of Charles as a platform for community-based music NFT?
But before that, I would like to ask Eason what he thinks about Euterpe or music.
Eason @GaoSen:
1, web3 and NFT have brought all possibilities to the music industry
NFT and web3 have reshaped the production relationship of the entire music industry, allowing The in-depth development of music copyright and the in-depth operation of fan relationship have become a possibility. Everyone here is a stakeholder, which can reduce the importance of middlemen. Everyone is not just a transmission of value through streaming media such as Spotify.
2. NFT belongs to the category of creator economy
3. web3 has opened up many new service categories and scenarios that do not yet exist, which can stimulate a broader level of Some product and service innovations are very helpful to increase the value of the entire industry, so this is also a track that we are very optimistic about.
Recently we looked at a project. The songs that appear on the homepage or daily recommendations of traditional music platforms are determined by the platform, but on this platform, its agreement gives the rights to the listeners, and the listeners can decide which charts musicians can occupy by voting, and can be given priority.
The success of the project combining music NFT and web3 is related to its iterative ability and route planning. Can it create a shared ecology of the entire music copyright, how to gather more stakeholders on this basis, and how to combine socialfi and even gamefi together in a good way. The design of the project inflation economic model is also very important. How to make everyone creat to earn, not only the part of to earn, if it is only earn, it may bring Ponzi controversy to a project. How to better stimulate create and provide a channel to promote the migration of musicians and artists to web3.
Host Leon@Leonpowerwind:
Claire, what do you think is special about this Charles project, and what do you think of music NFT?
Claire@monkeyking_s:
The origin of my project fate with Charles was that Mercy, a friend of Euterpe, met me in another async art AMA. After we met, we hit it off. I am very optimistic about this model of Euterpe.
1. The musician's IP is a very broad IP.
One form is a top musician. For example, Jay Chou has tens of millions of fans, but how many people will buy his NFT album? There is also a niche musician, who does not need to have millions of listeners on Spotify, and only needs 10 collectors to collect his NFT income to support his creation.
2. There are two aspects that need to be considered as a platform.
One is to lower the threshold for independent musicians to create music NFT as a platform, so we (async art) provide them with a music blueprint tool, allowing many music People can directly publish works on async art with one click without code.
Second, many platforms need to find cooperation with to B. The music label in Web2 is a very good concept, and Euterpe has a lot of IP, which means that it has a great aggregation effect, and it can create a label. When everyone sees Euterpe, they know that it represents the voice of a community and also represents an aggregated big IP, and the effect and influence it can produce will be even greater.
Host Leon@Leonpowerwind:
1. Music is a good link between different countries and communities
In the past few months, we have actually done several A concert, linking up with different countries and communities. In this process, music is a good circle breaking element. I am also very active in TW, and often go to the space in the United States to establish a good relationship with them. The most direct way is to line up in a group of, for example, 100 or 200 people and sing a song. For rap, I told them that I am a rapper. After singing, I will get their respect through music, and then I can easily enter some of their music communities.
2. Because musicians know how to attract fans through operations, and can use NFT to capitalize the community instead of Make money slowly in the form of a product, so musicians may earn more than visual artists in web3
I do finance and know that the highest monetization efficiency is Capitalizing instead of selling products, just like when you make money from Haidilao, the fastest way is to package the expectation of opening a hot pot restaurant into a story, and then sell stocks to raise money, which is more efficient than selling hot pot one pot at a time The way to make money is also a way to realize cash in advance.
3. In web3, which one is better, the discord music community operated by one or two people and the platform nature of Charles? Advantage? And how does Charles convince artists not to run their own community, but to come to you and use your technical solutions to do it, or is this thing not conflicting, and he can do it himself, and at the same time use the platform as another channel?
Charles @eut_io:
1. As Leon just mentioned, the most profitable thing for musicians is actually selling rights, not just selling copies.
2. In the era of web3, if many intermediate links in the traditional music industry can be removed, in fact, there are only tens of thousands of musicians fans, or 10,000 loyal users, or 1,000 loyal users, you can get a relatively good income.
In fact, we have done calculations. In the United States, a musician wants to put his work on mainstream media such as Spotify and YouTube. To collect royalties, if he wants to achieve a minimum wage income, he may need nearly 3.5 million hits per year on Spotify, and nearly 19 million hits on YouTube, which is difficult for most people to achieve.
Several pain points that our platform hopes to solve, or several additional values provided.
First, we hope to give musicians a package solution for copyright management.
For example, you can sell your own works on OpenSea now, but it has no way to solve copyright issues. You can send NFT, but This is more of a copy, similar to a vinyl record. If you want to homogenize the copyright and sell it, there is no good platform to help you solve this problem, because it is not just a link behind it, but also requires the processing of some corresponding legal documents behind it, or there are The processing of some corresponding legal acts.
Second, we hope to help musicians, who can help him complete the confirmation of rights while uploading works.
After the rights are confirmed, how can the copyright be represented by NFT, and then the transfer of this NFT can also represent the copyright circulation. For example, as a fan, the NFT I bought, you claim to me that this represents copyright, then the corresponding next step should be to receive royalties, how to collect royalties? We hope to gradually import the royalties generated by various platforms and channels into this ecosystem, so that NFT holders can obtain corresponding royalties according to their share. So no matter for copyright owners or musicians, he can get a one-stop platform to deal with copyright management related to NFT and works.
Third, for fans and investors, what they buy is the copyright of this work, not just Buying a copy is not buying a vinyl, not only being able to listen to it at home, but you can become the co-owner of the copyright of the work.
We also want fans to stop worrying about possibly buying a fake, bootleg item. We hope that he can really buy with confidence and boldly on this platform. No matter what type of music you buy, whether you buy a new musician or a head musician, we can guarantee that the NFT you buy can be sure that it comes from the musician and from this work.
Finally, through the platform's socialfi mechanism and token economic model, we can make all platform participants reward , can grow together with the whole ecology.
A very important point through the token is to allow all participants in the ecology to become stakeholders based on their contribution to the ecology. To obtain future growth dividends, I think it is because we hope to give some value to the participants in the ecology, and it is also the reason why many musicians are willing to cooperate with us.
AMA section
@Ocean44944:
< /p>
In the era when there were cassettes and CDs, the centralization of resources created many superstars, and this ecology also led to the prosperity of the entire music industry. With the popularization of the Internet, this trend is slowly sluggish. Can I understand that the music industry relies on a centralized operating mechanism to thrive, so web3 is more decentralized than web2. Is there any new mechanism that will be created like before? What about the prosperous superstar ecology?
Euterpe:
Every technological advancement has a huge impact on the music industry. In the early days, the main source of income for musicians was live performances. With mechanical reproduction, there will be new royalties. For example, in the era of CDs, musicians had a good income without fans buying many copies. Superstars like Michael Jackson sold millions of copies, and their income or value was huge. Later, the appearance of MP3 was a big reshuffle. Before, an album sold for ten dollars, but now a song costs ninety-nine cents. It is a contribution to fans, making their choices more flexible, but for musicians, not every song is a hit. The previous album could sell all the songs, and now it has become one of the ten songs. Only one or two songs can be sold, resulting in a decline in income. Later, the emergence of streaming media made it even more difficult for musicians to obtain better returns. We have calculated that a musician needs to play 3.5 million times on Spotify and 19 million times on YouTube in order to earn the minimum wage. , so the whole ecology has changed.
Other income types of musicians have become more important, such as advertising, variety shows, concerts, concerts, etc., online streaming Media playback has become a source of traffic, and streaming media platforms have become extremely important, but these platforms are centralized, and the limited resources of traffic distribution make popular people more popular, and it is difficult for unpopular people to stand out, which makes the entire The industry becomes solidified. In addition, record companies are more inclined to the 360-degree signing model at this time. In this mode, the record company does not consider the quality of the music, but the ability to stream. Therefore, those who pursue the ultimate in music, like Michael Jackson back then, can become superstars with their own music. The effect may not be as strong. This leads to a situation like what you just said.
But I don't think the whole industry has declined, no matter what era it is in. Our demand for copyright works exists. These days, in NYC venues in New York, whether it is on the street, in bars, background music is constant. Music is the eternal need of human beings. We just want to better use technology, Through some good business models of web3, the music industry will be more vibrant, more musicians will have the opportunity, and the entire ecology will develop more vigorously as before.
@AlanSunJet:
From the perspective of WEB3, in addition to traceability, anti-counterfeiting, and copyright, is there a standardized and inspectable way to promote the development of music? Can this promotion be manifested more quickly, rather than long-term?
Cao Yin@CaoArmand:
< /p>
It is now a fully competitive market. The biggest feature of WEB3 is that there is no threshold for innovation and convenient financing. So, if this method has not yet come out, then I think it is not the problem of the project party, but the timing is not right. Like many defi models, whether it is lending, Stablecoin, or decentralized transactions, there were already some similar models as early as 2015, but why they couldn’t start at that time, either because there was a problem with the model itself, or because the timing was wrong. Therefore, if various business models are discussed in the current context, or at a specific time, it is difficult to make objective and tenable comments in the long run, and the same is true for music. When web3 reaches another level, more people around the world use the crypto network, and some of the current business models can be destroyed. The Securities Commission or the successful verification is to persist, wait until the time comes, wait until the market accepts it, and wait until a certain opportunity appears.
@GameFi_Fund:
The entrepreneurship of traditional WEB2 Internet music is actually very dependent on the empowerment and success of social platforms. In order to make his base bigger, the social networking of WEB3, SocailFi has just started, and there is not even a fist product. Is it too early to do WEB3 music now? Traditional music entrepreneurs on WEB2 are in too much pain, there are a lot of piracy, and users pay for music. There are no social products like pictures, audio and video. It is difficult to make money without a large number of users. So how to make money in Web3 music, now and in the future ?
Claire @monkeyking_s:
I think that at the stage where there are not a large number of users, the point of making money from WEB3 music should be on collectors, not on listening to the audience. Although music is suitable for sharing, we have to make huge traffic , huge audience.
Eason @GaoSen:
I very much agree that it is very difficult to make money in the music industry from all aspects of the traditional industry, and if it is empowered through Web3 or blockchain, the business obtained cannot be seen immediately. Where is the income, but this is actually the case. We need to see whether the positive economic externalities brought about by this matter exist. It really simplifies some things through web3, such as the creation of music digital assets, so that the collection of royalties can be automatic and efficient, the transfer of copyright, the secondary creation of copyright, the programmable and traceable NFT, all greatly improved The efficiency of each link is beneficial to the music industry. The WEB also gives traditional musicians more options and possibilities. I think this is more important. And for us to invest in WEB3, many times we don’t actually look at the number of users, the traffic brought in, or the amount of revenue. Most of the time, we do it from the perspective of tokenomics and crypto crypto native. Judgmental.
@yunuwugua6:
Is there any technical change in the current music NFT, which makes the current investors and media pay more attention? Netease Cloud and Tencent release digital records, will he want to be a music NFT streaming platform? Or are there other possibilities? There is also the first case of music blockchain rights confirmation in China. The more controversial part of music copyright is how to define commercial use or not creative attribution. So can blockchain really help music rights confirmation?
EUTERPE:
First, this NFT NYC conference, music is a very big section. The whole day yesterday, at the Marriott Hotel, the main venue, was all about music, so I think this should be a big one. Trends, you can see that there are a lot of explorations in the form of pictures, and there will definitely be other forms in the future. And that includes music.
Second, the market is very large, different companies will have different opportunities, and will also be affected by different strategies, products and other factors, because music, NFT There are many forms of combination, and the entry points are also different. I believe that this market will not only accommodate one or two companies, and if Netease Cloud or Tencent wants to do it, they will also have their strategic considerations, including resources. There will also be choices on the route.
Third, the value of blockchain technology for music or copyright is not only in the confirmation of rights, but confirmation is only a link, including a copyright, its enforcement has There are many links, including what you just mentioned, the income of royalties, disputes, judgment of license and judgment of commercial application scenarios, etc., it will have a very huge system in it, and the blockchain will have many aspects in many links. Its application is not just to solve the problem of right confirmation.
@ValerieeeWeb3:
If you have your own profit point in WEB3, it may be based on the NFT community and influence formed around it. This part is more difficult for traditional music works, because we have an on-chain distribution and incentive mechanism. NFT can be distributed in a fragmented form, and each holder can participate in the marketing of each NFT. In my opinion, this matter is a feasible breaking point in the future. I don’t know what teachers think?
@Ocean44944:
In the future, if NFT wants to gain a foothold in the music industry, I I think it is a question of subjectivity. What was the era of superstars? It is because he has the subjectivity of music. It is not a way to compete for the attention of users by scoring movies and making background music for Douyin. To obtain a sovereignty, WEB3 music needs to determine its own subjectivity. It is possible to build a community similar to Moonbird. This may be a directional attempt for web3 music, but I don’t quite agree with it. I still believe in an effect of scale. I feel that it is necessary to establish its subjectivity. The carrier, or the main body of the music itself, rather than an accessory.
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