The Decentralization of the music industry.

I've always been intrigued by the concept of decentralization, particularly in the sphere of Decentralized Finance (DeFi). The idea of bypassing traditional intermediaries like banks and financial services has always appealed to me, not because I'm opposed to the industry giants, but because of the freedom it offers.

The music industry, traditionally a centralized fortress, has begun to show signs of decentralization. With the rise of new players—from distros to streaming services—the necessity for traditional music industry gatekeepers has diminished. You no longer need a major label to distribute your music, a record deal to release your tracks, or radio play to find success.

As streaming and social media become key to music success, with algorithms calling the shots, it makes me wonder where we're all heading.

Here are a few scenarios that come to mind:

1. Complete Decentralization: Imagine a music industry where the last remnants of human curation are removed, leaving algorithms to promote whatever is trending. Distribution services become obsolete, replaced by technical platforms. Artists become self-sufficient, building their fanbases and competing based on the quality of their content and music. It's a Battle Royale where the best triumphs—simple and fair.
2. Shift to Investment: Major labels and distributors might evolve into investment funds, focusing on funding artists who can create music, engage fans, and generate buzz independently. These industry players will support artists who demonstrate their ability to drive traffic and build communities, enabling them to scale their operations.
3. The Importance of Marketing: In a world dominated by algorithms, artists will either need to achieve high organic reach with standout content or invest in visibility. Marketing becomes essential for navigating the algorithm-driven landscape of music discovery and consumption. This implies that entities offering highly effective marketing strategies will emerge victorious.
4. Discovering Hidden Gems: Despite decentralization, the vast volume of content means not every piece of music or content will receive its deserved attention from algorithms alone. This creates a dichotomy: the new mainstream, visible to everyone, and the hidden treasures, requiring expert guidance and investment to be uncovered. Niche markets will continue to be influenced by trendsetters, people and communities, rather than algorithmn.
5. (Additional) Impact of a TikTok Ban: The potential ban of TikTok in the U.S. could drastically reshape the digital culture landscape, given its role as a cultural trendsetter. Its absence could prompt a more fragmented digital culture, where the need to rethink current promotional tactics becomes imperative.

Streaming, accounting for 67% of recorded music revenues in 2023, might soon mirror the Bitcoin market, driven by the collective decisions of the market rather than a selected group of industry insiders (best not to delve into the topic of whales to keep the discussion focused).

As we navigate this shift, focusing on innovation and community engagement will be key to thriving in a decentralized music industry.

#Musicindustry #Musicbuisness #Decentralization