In a recent discussion by Paul Barron, the CoinSpeech team collected the most important takeaways from his recent appearance. You can find Paul Barron’s new video below.
Web 3’s Impact on the Music Industry
Paul Barron delves into the transformative impact of Web 3 on the music industry. Central to this revolution are platforms like Audius, which are establishing licensing agreements with all major Performing Rights Organizations (PROs), including ASCAP, BMI, and SESAC. “This is kind of like the union of creators… this is how licensing gets distributed around different types of platforms,” Barron explains.
The Problem with Traditional Gatekeepers
One company that currently handles music distribution is Ditto. However, many artists have expressed frustration with Ditto’s payout system. According to one creator, “I don’t need to get in a one-to-one fight with a bear to realize that it’s dangerous to be in front of a bear… There’s something going on with Ditto.”
Audius has already started to address these issues by introducing live streaming payments. This will likely appeal to mid-level artists initially, but is expected to attract top-tier music creators in the future. “Artists today really have no affinity to the current layers or the current rails of music distribution.”
The Future of Music Distribution Models
Barron emphasizes that current gatekeepers in music distribution could be replaced with more decentralized models enabled by Web 3. He states, “Right now there’s a lot of gatekeepers for distribution; this is the thing that Web 3 kind of solves well.”
One example is Audius’ partnership with Unreal Engine, which integrates music distribution with gaming environments. Audience engagement could happen on platforms like X (formerly Twitter), further demonstrating the convergence of social media and Web 3 technologies.
Challenges in AI and Music
The potential of AI in music has also stirred controversy. Ed Sheeran’s old label and many other industry stalwarts have faced difficulties in incorporating AI without violating copyright laws. “Our technology is transformative; it is designed to generate completely new outputs,” claimed the CEO of AI music firm, Sunno. However, Barron warns, “If you look further into it, [even they] didn’t really succeed at it.”
Lawsuits have already begun as traditional record labels push back against AI startups. “A legal firestorm is brewing over this major clash between record companies and AI music services,” reports Barron.
The Role of Transparency and Blockchain
Platforms like Futureverse aim to solve these problems by focusing on transparency. “Futureverse launching Gen which is an AI music model focused on transparency […] help connect the dots between creators and AI use cases,” Barron points out.
Even industry players who have woken up to the benefits of self-distribution are rallying around blockchain integration. An independent musician, highlighted by Barron, states, “I’m happy and able to own and self-distribute my own music that can effectively be owned by individuals through the blockchain.”
The Rise of New Platforms
Audius is spearheading this movement with notable integrations and growing traction. “API calls are over 5 million and still growing,” notes Barron. The discussion at innovations conferences like AWE underscores the pivotal role Web 3 can play. “Why does anyone know what’s been going on in the music industry for the last 20 years? One word: theft,” states one speaker.
Root Network and other Web 3 platforms are poised to grow significantly as this market matures. “This is a big opportunity for where Audius is going,” Barron concludes.