Pioneering digital music store eMusic has launched its Ethereum-based EMU token, with the aim of giving more royalties to musicians and creating a more sustainable music ecosystem.
According to an eMusic announcement, the firm launched its token with the aim of creating a sustainable music ecosystem.
EMU Token to Help Independent Artists
Speaking at the launch eMusic’s president Tamir Koch said streaming had been a one-sided success story:
‘Streaming has dramatically increased revenues and adoption, but the model has proven itself to be fundamentally flawed.’
‘Hard-up artists receive a fraction of the royalties,’ said Koch, ‘while intermediaries take an ever-growing slice of the pie and leading services remain loss-making.’
Launched in 1998, eMusic is a digital music pioneer, headquartered in New York City and has a base in London. The platform was one of the first websites to sell DRM-free MP3 music recordings. And according to Owler, the eMusic employs 278 people and has annual revenue of $65.7 million.
Artist Royalties Finally Flowing in The Right Direction
And with the transparency and cost cutting method of the ERC20 EMU token, eMusic hopes to revitilze the music industry by giving more to musicians, and according to Koch, independent labels and artists are very interested in the move onto the blockchain.
‘eMusic has an agreement with almost 600,000 independent labels for new content,’ Koch said. ‘Independent artists will be able to put their content up directly. The new infrastructure will enable artists to withdraw revenues in real time, and also see in real time what their share is in payments going out to labels. Using the new infrastructure, everybody will know what went to each party in the system, and that will create an even balance.’
Koch said the EMU token would create a new commercial model that would ensure a fairer distribution of funds between the fans, artists and music producers.
A spokesperson for eMusic said the blockchain token would not only be a fairer way of distributing royalties, but would also create a closer bond between artist and fan.
‘Blockchain enables us to decentralize music distribution so that we can unlock more revenue for artists, and provides unparalleled transparency over music consumption. The beauty of the eMU token is that it goes far beyond facilitating transactions. It also makes it possible for us to offer a number of direct-to-fan features such as instant rewards, merchandise, crowdfunding and so much more.’
How Will EMU Tokens Work?
The EMU tokens are designed to be spent on music and are guaranteed to always be enough for at least one song, no matter what the price of the token is.
There’s a social aspect to the platform, as well. Fans will be rewarded for being active on the platform and paid out in EMU for things like sharing music and reviews.
Artists offering their music on eMusic will receive 50% of the sales revenue generated, and although this may seem les than what is paid out from centralized streaming platforms such as Spotify, when we strip away the hidden costs, it turns out to be a much better deal for the artist.
‘Major music services are paying for the music based on revenue share, while payouts to artists are based on a per use model. This means that if you are listening to an artist on Spotify and you are paying $9.99 for the month, Spotify pays out seventy-five percent, but the artists see only a small portion of that. In the middle, you have intermediaries such as collection agencies paying out on a per-play basis to artists.’
For too long artists have had to bend over and do as the music industry orders. The legal mess of The Beatles and The Rolling Stones collections has seen the artists lose out on so much.
We’ve seen bands sell out because music bigwigs tell them to (not mentioning any names Kings of Leon), but by empowering the artist and making payment fairer and transparent, we might start to see a re-energized music industry.
It might be too late for the greats of the past, but at least the next Justin Beiber will get what he really deserves. Joke!
No seriously, It’s a great move from eMusic, and one that if a success will not only make a fairer flow of royalties, but also see a bond between fans and artists bloom.
Author: Tommy Limpitlaw