How Crypto Can Revolutionize the Music Industry

Published on
February 9th, 2021
Duration
56 minutes


How Crypto Can Revolutionize the Music Industry

The Interview - Crypto ·
Featuring André Allen Anjos and Raoul Pal

Published on: February 9th, 2021 • Duration: 56 minutes

André Allen Anjos, an artist and musician known as RAC, joins Raoul Pal, Real Vision CEO, to discuss how Anjos got into crypto, how it can disrupt the music industry, and the potential of community tokens to enhance the experience of both musicians and their fans. Anjos shares what it’s been like working with Ujo music and Consensys as a resident musician, making his music available through smart contracts built on Ethereum. He describes the current state of the music industry as ripe for disruption, pointing out that the middlemen take an unfair percentage of the artists’ proceeds. Blockchain can help connect artists directly to their audience without a need for middlemen. Anjos mentions the community token he created, which represents ownership in his fan club. He distributed this token to all of the people who had supported him by purchasing his merchandise, creating a closer relationship between him and his fans as well as giving him more control over his own product. Filmed on January 27, 2021.

Key Learnings: Blockchain, smart contracts, and tokenization will enable the disruption of middlemen from nearly all industries. There are many experiments working to improve the relationship between the artists and their fans, helping to remove the middlemen found in the current music industry and who take high percentages of artists’ proceeds. Anjos lays out how artists can find significant value from embracing the new tools enabled by blockchain.

Comments

Transcript

  • PW
    Paul W.
    11 February 2021 @ 11:02
    Marvellous - really interesting angle to the decentralised future. Just thinking out aloud - the potential for an artist / DJ / singer to distribute a limited number of tokens to access an online event (essentially the token becomes a digital ticket). Once the ticket (token) is used to watch that live performance (or use the token to replay the performance at a later date) it can't be used again / viewed again (or at least - can't be viewed for say, 2 years). You are therefore creating scarcity as the ability to view is restricted (although existing tokens can be bought / sold). But there is also a time value element (with a 2 year expiry) before the event becomes available for everyone online for free... The performer shares in the token's appreciation, the token buyer can speculate on future demand (and essentially with every 'view', the token becomes more valuable as there are less views in circulation)... but the expiry time ensures people don't hoard tokens (views) as they will be worthless after expiry date... Many thanks Raoul, Andre, RV - great food for thought... I'd be keen to see/hear more decentralised/crypto-related content that pertains to the music industry in particular. As you stated, you don't need to 'sell' the problem statement when it's so obviously apparant.
    • DM
      Darius M.
      26 February 2021 @ 02:48
      Suggestion such yours is why I’m so excited about the space as a whole. There are no boundaries on where this can go, which I appreciate crypto and everything it has to offer.
  • JS
    John S.
    18 February 2021 @ 15:25
    As a musician myself, this was a great video to watch and there are crypto music streaming sites like Emanate, Audius, ROCKI that are looking to bridge the gap with streaming tokens (although those tokens will be owned by those companies and will effectively still be centralised). Setting up your own community token is something that can really shape the future involvement of your fanbase and applying a tiered system based on the amount of tokens your fans have is an inspiring concept! NFTs for limited edition releases or digital merchandise can be huge as well and are being explored in this new era. The potential is huge really! Making easy "on/off" ramps so fans can trade tokens for your music related goods will hopefully help remove the barrier of adoption. Definitely in a better place now (Feb 2021) than vs this time 4 years ago! There are crypto blogging sites I use as well where as a musician, you can give back to your fans who comment and interact by upvoting their comments, they receive some crypto that they can potentially spend on your website shop, like a redeemable item. I'll follow Andre as this is something I'd like to explore - although I am right at the bottom of the music food chain haha!
    • MC
      Mark C.
      19 February 2021 @ 03:38
      Looking forward to how this industry develops. It ia going to be amazing.
  • AS
    Adam S.
    15 February 2021 @ 00:44
    I like the idea of living in the pub Raoul :)
  • Dv
    Darius v.
    14 February 2021 @ 23:43
    Listen guys, this is how a blockchain music streaming app needs to start to be succesful. We need a phone app. It costs 10 euro per month. 1 euro of that goes to the miners. They host the music and receive coins for that. You promote it to the public like this: you pay 10 euro per month, and 9 euros of that goes to the artists. If you listen to only one artist for the whole month, then that artist gets 9 euros. So the money doesn't go into a pool like with Spotify, the money is directly and completely linked to the artist according to the % (not number) of listens of a single user. Of course, in the beginning, there won't be that much music on there, it will be shit compared to Spotify. But that's ok. Let's call it the Tesla approach. So Tesla first targeted rich people (Tesla Roadster). These people with money will use the app and just listen to whatever is available. They'll understand that it isn't yet an alternative to Spotify, they'll "get it" and it will be ok. They understand they need to do both and they use it because they understand the goal. After a while you move on to the Tesla Model S. The catalogue is starting to get quite decent, and the word is spreading. So more mainstream adoption, but still the early adopters. Then later comes thes the model 3 and eventually the 25k car etc, i think you see where i'm going with this analogy. I believe this sort of grass-roots approach will ultimately be successful.  To try to start right off the bat with a Spotify killer isn't realistic, there's too many vested interests. The Tesla  / stealth mode is more likely to succeed. Just MHO. Any comments / ideas?: dariusvh@gmail.com
  • Dv
    Darius v.
    14 February 2021 @ 23:20
    For the actually transmission of music to audience, no middleman or label is needed. So labels will die and all you'll be left with is PR companies to promote artists. And so must it be. I'm only half way thorugh the interview so maybe they'll come on to this..... but i love the idea of fans being able to invest in an album. For example, they hear an album, think it's marvelous, decide to invest 10 euro in it, and as it becomes popular, the money is slowly paid back to them via blockchain so maybe in the end it only costs then 3 euros. That sort of thing and a million other ideas will be possible,
  • Dv
    Darius v.
    14 February 2021 @ 22:45
    Spotify really sucks. Here's my analogy for what Spotify is like: You walk into a bricks and mortar record store circa 1990. The decor is marvelous and shiny and the whole place looks fancy. You look around and all you see is top 100 artists from the big labels. You ask the girl behind the counter about some obscure album from your favorite, not so famous artist. She says: "oh, all that stuff is in the section though there", pointing to a swing door at the back of the shop. You push through the door and find youself in a huge dusty warehouse. Boxes of records are strewn randonly across the floor, the records spilling out. Nothing is labelled, you can't find anything. There's one unshaven dude in baggy trousers working there but he can't help you and seems uninterested.  That, for me, is what Spotify is like.
  • AP
    Alex P.
    11 February 2021 @ 13:03
    Record labels and independent artist in the future will sell digital albums for about 10 to 15 and pay 2000 for gas fees. They are going to kill it!
  • MH
    Matt H.
    11 February 2021 @ 06:06
    Raoul you need to check out the emanate https://medium.com/emanate-live Doing great things already for the music industry
  • dw
    douglas w.
    10 February 2021 @ 20:45
    Dynamic interview - Great to see RAC on here, creative/conceptual openess and technical de-fi prowess is inspiring! I guess the question is.. When does the RV token get airdropped to us? The "PAL" token © haha Look forward to RAC playing live sometime in the future during a crypto event this summer!!
  • AB
    Anthony B.
    10 February 2021 @ 07:25
    We have an internship program where we have virtually hired students from all over the world. We're really making a different in young through Hip-Hop. Can you help us scale and grow? We are growing and just secure our second contract with the 4th largest school district in the US. We need some support and believe we could use this cryptocurrency.
    • CC
      Christopher C.
      10 February 2021 @ 11:36
      Hey Anthony, here's some information on NFTs and how you could mint some limited edition collectibles from your students (that may even be redeemable for physical items, like cassette tapes, if you choose): https://andrewsteinwold.substack.com/p/-quick-overview-of-the-nft-ecosystem Three of the platforms for creating these assets to make them available for sale on the blockchain are: Mintbase: https://docs.mintbase.io/ Cargo: https://docs.cargo.build/creating-collectibles Rarible: https://app.rarible.com/create Not sure if RAC used either of these for his special auction, but worth reading into them and seeing what the process is.
  • Ev
    Edwin v.
    10 February 2021 @ 10:52
    As a musician myself I thought this was an absolutely fascinating interview. There are indeed still so many opportunities in the music and creative industry. I would love to invest in my favourite artist - pay a little more for a record but then becoming part of an incentive system where I make money too promoting them etc.. So many opportunities its insane.
  • AB
    Anthony B.
    10 February 2021 @ 08:00
    GREAT JOB RAOUL PAL
  • AB
    Anthony B.
    10 February 2021 @ 07:52
    Andre Allen Anjos amazing video, we'd love to be one of the grassroots/startup Hip-Hop record labels that's doing some great work to make changes in our world.
  • AB
    Anthony B.
    10 February 2021 @ 07:17
    We would love to work our Record Label into this huge opportunity. We create positive Hip-Hop music to teach and train young and young adults. We would love to produce a Hip-Hop clean record and music video talking about the revolution of crypto and the music industry. We can be reached at www.blackmanmusicgroup.com or info@blackmanmusicgroup.com
  • sf
    susan f.
    9 February 2021 @ 22:50
    Great interview for general interest and music lovers and particularly after just watching the brilliant Mark Cuban interview, Thank you
  • AD
    Anthony D.
    9 February 2021 @ 19:43
    I recommend you guys check out Hyprr where content creators are getting 100% of the tips and its run on their own Howdoo Blockchain. they are adding NTFs in Q2 which really fits into what you guys chatted about in this vid.
  • BT
    Billy T.
    9 February 2021 @ 16:55
    May be I need to watch this interview again. But I don't understand what he's doing with tokenization and music. Perhaps someone can break it down for me. Thx.
  • AR
    Andres R.
    9 February 2021 @ 11:28
    Great call Raoul on addressing the music side of this. Ever since your interview with the Winklevoss bros I've been thinking about applications of tokenisation to music in order to solve what I perceive is a problem in the music industry: the loss of value of recorded music, since the price effectively dropped to zero. The solution that has been the norm since streaming has been to create community in order to extract profit from derivate products, which in turn because making music isn't free and profit has to be made somehow, those profit generating products have become THE PRODUCT (ie merch, tickets, etc). It's all great but the fact that music as a product has lost value has not been addressed. I still struggle to see how tokenisation will get around this problem. I realise that I should justify why it's a problem in the first place, but this is no place for an article. I guess I'm trying to get to the point that there must be a way of introducing true scarcity to music. Just like before recording you had to be physically present when music was played, and later you had to own a physical copy of the recording (and the value we assign to that copy is a whole economic phenomenon in its own right), maybe limiting the supply of a recording via blockchain and making the experience of owning it appealing (like the whole ritual of buying an LP or CD was, taking it home, unpacking, smelling the paper, reading notes, sitting down and taking the time, etc) could be a way of giving back value to the actual music and to the LISTENING EXPERIENCE. Maybe one of the super bright minds here can make that happen one day.
    • TZ
      Toomas Z.
      9 February 2021 @ 11:39
      Tokenising music solves the problem of not requiring middle-men who take most of the value from recording artists just to be on their label/advertising. With regards to musicians making loads of money from CD's in the old days - I don't think those days are coming back, and on the flipside that's a good thing as it has made music much cheaper and accessible to people. I think CD's were ridiculously overpriced in the old days, and you were often buying albums with 3-4 songs that you liked, with the rest being garbage and still having to pay for it. Yes musicians make less now from record sales/streams, but this new world is far better for the consumer and is the reason why it basically consumed the old industry. Tokenisation has the ability to increase that income slightly, but I don't think it will be anything like the old days. It's nice that you have such a connection/nostalgia with your music listening experience and those days, but I would say a large majority of the population is not like this. Something could perhaps be done with buying songs/singles online now with artists including various rare NFT art with their single, the rarity/exclusivity could perhaps drive sales.
    • AR
      Andres R.
      9 February 2021 @ 13:00
      I think your points are valid but they have their objections that we could go through one at a time. I don't think we need to as none of them addresses the core issue, music itself has lost its value because it has ceased to be scarce, and I posit that if tokenisation doesn't reintroduce scarcity to music (like BTC did to money), then it's just playing the same game on a different board. And believe you me I'm no nostalgic gen Xer, I'm as millennial as they come and a musician at that ;)
  • ML
    Marco L.
    9 February 2021 @ 11:32
    Soccer token (including Barcelona) exists already!! Please invite Alex Dreyfus, CEO of Socios.com
  • TE
    Tom E.
    9 February 2021 @ 10:58
    Lots of interesting angles to DeFi in there. V useful interview.