My thoughts for the headline of this article at first was “The Role of Blockchain in Revolutionizing revenue generation and distribution” But my buddy Chatgpt helped improve the heading properly suited with a little bit of more information. So I urge you who comes across this piece to take your time in checking it out, being it clearly affects us all creators especially here in Africa. Be it actors, actresses, writers, musicians, producers, editors and so on. For the work we put in our loving time and efforts into we clearly deserve some transparency in distribution of royalties of some kind.
The Focus of this Article for me Is to draw a link showing how blockchain technology ensures fairer and more transparent royalty distribution for the creative industry. Especially in Africa where creators like Artists, Writers as well as other creative minds of different industries go un-discovered, due to the lack of proper revenue generation and distribution channels. This article entails why it is necessary to patronize this digital currencies and investments especially those operating under the blockchain industry.
Encouraging the idea of blockchain royalty generation and distribution with creators in mind, i also give top hands to sponsors for discovering and helping creators or artists get discovered in some way and thriving in the world where they so chose. The idea of this article is to draw attention to a more digitalized and transparent method of generating and distributing the revenues that come from the creative industries.
Research has shown how blockchain keep track of activities and engagements on the internet, reads for books or articles and views if it’s graphical images or videos created. As well as the level of transparency at which royalties are generated and distributed efficiently to creators of all kinds.
Ever think of Highlighting the Issues in traditional methods of royalty management:
1- Unclear Process of generation and distribution :
Knowing how rapidly the different creative industry has grown talking about in Africa, artists and creators still face significant issues when it came down to generation and sometimes fair distribution of revenues generated especially with the traditional ways still lot in play. Not disregarding any of the traditional means of revenue generation or distribution but with blockchain’s way of revenue generation and distribution I think lots of people would agree that it has been transparent since the introduction of digital currency to the creative industries. Not to talk of the space available to a large number of participants.
Traditional models of royalty distribution are filled with unclear processes, and often result in creators receiving only a fraction of what they are due. I would think Blockchain technology’s development has helped a lot and with more involvement of investors and improved development by developers one would say we have started on a journey impactful enough to redefine the approach at which artists and creators in the future are compensated for their work.
2- Long list of intermediaries involved:
Under the traditional method of royalty generation and distribution, royalties are usually collected by various intermediaries, like publishers and record labels in the music industry. These entities track how often contents are being accessed or played for musical artists, on different platforms, whether it’s streaming services, radio, or live performances. However, the process is often slow, complex filled with errors along the way. Moreover, the lack of transparency means that creators and artists rarely have visibility into how their royalties are calculated, leading to mistrust and dissatisfaction.
Blockchain as a Solution
Researching Blockchain and Defi technology has thought me to see how much solution these challenges require. Enabling a decentralized and transparent system for tracking views on written content and number of plays on music or video platforms and distributing royalties seems like an amazing idea knowing how invested the future would be on creative projects.
- Immutable Records: With the idea that Blockchain creates an immutable ledger where every play or view of a song, video or written piece online is tracked in real-time. This means that once a song is played, an article or book is accessed after being published on the internet , that information is permanently recorded on the blockchain, ensuring that every single view or play is accounted for.
- Smart Contracts: Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, can automatically distribute royalties based on the pre-defined terms. For instance, if a song is streamed multiple times on a platform or a book or article viewed a certain number of times the smart contract would automatically calculate and distribute the earnings to all stakeholders be it artists, producers, directors, or songwriters also in the case of writers, editors or publishers based on the agreed-upon percentages.
3.Reducing Intermediaries: By using blockchain, creators and artists can reduce so many traditional intermediaries, allowing for a more direct relationship with their audience. This not only speeds up the payment process but also ensures that creators receive a supposed share of the revenue generated from their work.
- Global Reach: Blockchain operates on a global scale, which is particularly beneficial for everyone around the globe. This article was put together in reference to African creators and artists who want to reach an international audience.
With blockchain technology, creators easily generate through this distribution platforms like Audiomack and Spotify for musicians and Medium, Patreon and a few others for writers and editors as well as YouTube for video directors and producers. Everyone able to receive payments in cryptocurrencies, which can be easily converted to local currencies, eliminating issues related to cross-border payments and currency conversion.
Real-World Examples:
Listed above are just several platforms already utilizing blockchain to address the inefficiencies in the creative industry. Audius App also is a decentralized music streaming platform that allows artists to upload their music directly to the platform and get paid instantly with no intermediaries involved. Ujo Music App is another platform that uses blockchain to create a transparent music ecosystem, where artists can track the use of their work and manage their rights and royalties efficiently.
Implications for African Artists
For African artists, the adoption of blockchain technology has been a game-changer. It has empowered individuals, creators, artists to take control of their art. Blockchain technology involvement in the creative industry gives creators lots of push knowing that our revenue is generated and distributed fairly sometimes without our presence. The truth is By fully embracing blockchain, African creators not only secure their financial future but also contribute to the broader movement towards a more equitable and transparent global creative industry.
My near conclusive thoughts on blockchain and Defi technology in Revolutionizing the Creative Industry Royalties generation and distribution process continues to be defied with lots of innovation behind , although the idea of its potential to disrupt the traditional methods cannot be overlooked. But For African artists and creators, this technology represents an opportunity to address long-standing issues related to royalty distribution and to establish a more sustainable and transparent career in the creative industry. By adopting blockchain, African creators can ensure that their creative contributions are not only recognized but fairly compensated, paving the way for a more transparent and innovative ecosystem.
For more insights on how blockchain is transforming various industries, visit AdiTech_Ng where i and a few other researchers explore the latest developments in blockchain, crypto, and decentralized finance Technology.
Amazing piece