The New Music Publishing House: Bypassing the Wall and Empowering Artists (Part III)

I. The Broken System

Traditional music publishing funnels most revenue to labels, managers, and intermediaries. Artists face delayed payments, opaque accounting, and complex royalty streams. Despite selling millions of streams, many creators see minimal income.

II. Key Pain Points

• Lack of Transparency: Artists cannot audit revenue in real-time.
• Delayed Royalties: Collection societies report months behind.
• Contractual Constraints: Long-term, rigid deals block creative control.
• Managerial Leverage: Standard commissions (15–20%) further reduce take-home earnings.

III. Emerging Tools for Change

• Smart Contracts: Automatically allocate royalties per usage, enforceable on blockchain.
• Direct-to-Fan Platforms: Enable artists to sell music, merchandise, and experiences without intermediaries.
• Blockchain Transparency: Immutable records ensure accurate ownership and revenue distribution.
• Data Analytics: Artists track engagement, streaming, and fan behavior to optimize release strategies.

IV. Blueprint: The New Publishing House

A forward-thinking publishing house could function like this:

• Artist-Owned Shares: Creators hold equity in the publishing entity.
• Real-Time Royalty Tracking: Smart contracts distribute earnings immediately from streaming, sync, and live revenue.
• Fan Participation: Micro-investments and fan tokens allow supporters to directly fund and benefit from releases.
• Transparent Management: Minimal commissions, full reporting dashboards for artists.
• Global Reach: Digital-first approach enables worldwide distribution without traditional gatekeepers.

V. Case Study: Potential Impact

Example: An independent artist releases an album on the platform. Each stream triggers a smart contract:

• 70% goes directly to the artist
• 10% to marketing and promotion pool
• 10% allocated to fan engagement incentives
• 10% retained for platform maintenance and transparency auditing

No intermediaries, no hidden fees, real-time payout, and fans become stakeholders in the artist’s success.

VI. Advantages Over Traditional Model

• Immediate payouts reduce financial uncertainty.
• Artists retain control over creative direction and data.
• Fans engage directly, boosting loyalty and revenue potential.
• Blockchain ensures auditability and trust across the system.

VII. Next Steps

Building the new publishing house requires collaboration between developers, artists, and legal experts to craft smart contracts, design fan engagement models, and integrate royalty streams. Early adopters can showcase success, encouraging wider industry adoption.

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