Blockchain-based decentralized music streaming platform Audius has secured $5 million funding from leading names in the industry, including Katy Perry, rapper Little Nas X, The Chainsmokers, and Jason Derulo. The Rolling Stone reported that Martin Bandier, the former CEO and Chairman of Sony/ATV Music Publishing, is also a backer. The funding was secured after the Spotify rival reached the six million user mark.
Music streaming services collectively account for over 443 million subscribers, with Spotify alone having 165 million paying users, and the industry is estimated to be worth $13.4 billion in 2020. A recurring issue with mainstream streaming platforms is that many musicians, especially those struggling for greater exposure, believe that they don’t get a sufficient cut of the revenues. In addition, when uploading content in these services, artists risk having their work copied or illegally monetized by outsiders.
Audius is addressing these challenges using blockchain. Through blockchain, artists can safely upload their music on the platform and have an immutable record of owning that content. However, Audius needs to make sure that the person claiming ownership is the actual artist. If the content is misused, artists can easily prove ownership of the intellectual property and take the appropriate measures to stop it from being used without their authorization. It also gives musicians more control on how to monetize their work and enables them to connect with fans directly.
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