Disrupting the Record Label Business via NFTs
This post actually should be classified into two groups:
- one is how investing in music publishing is being democratized.
- second is about the commercial application of blockchain/NFT that is being used as the conduit here
Record Labels Business Model
Before we move to how blockchain or NFTs are disrupting this space, it is important to understand how Record Labels (General term for Music Publishing Companies who are called Labels) make money.
Here’s how it works. The label has a ledger against the artist. They pay for the recording (which they keep the rights to - in this case for 70 years), they’ll advance the artist some money for living, the put half the video costs on the ledger and tour support sometimes too.
— Tom Gray #BrokenRecord (@MrTomGray) July 21, 2021
This gentle soul was kind enough to explain me the doubts that I had over a Tweetstorm! Yes, Kindness is still around.
Here's another quote on this -
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Legacy model: Artists receive approximately 8% of revenue only.