Web3 is revolutionizing the music industry by empowering artists to connect directly with fans, allowing them to earn more through NFTs and smart contracts. Major companies like Warner and Universal are investing in this technology to adapt to new business models that enhance fan engagement and create fairer revenue streams.
Spotify’s Discovery Mode has emerged as a modern equivalent to payola, allowing artists to receive algorithmic boosts at the cost of reduced royalties. This model disadvantages indie artists by prioritizing wealthier labels and sacrificing income for visibility. Decentralized platforms may offer a fairer alternative, ensuring artists maintain control and direct compensation.
The article discusses the challenges faced by independent musicians in a traditional music industry dominated by major labels and streaming platforms. It highlights decentralization through blockchain and DAOs as a revolutionary alternative that empowers artists by enhancing ownership, transparency, and direct fan engagement, ultimately fostering a fairer music ecosystem.