In this blog, we curate relevant and remarkable content related to blockchain, cryptocurrency and the digital economy. This remarkable piece by Clem Chambers and Intelligent Investing published on Forbes explores the possibility of blockchain technology shaking up the music streaming industry. Read on.
My old music business friends always say, “Where there is a hit there is a writ,” and streaming music is definitely a hit.
Spotify and Apple are the kings, with the internet behemoths Google and Amazon chasing up behind and others coming along in their wake.
The $19bn industry is about 20% of Google’s sales and is for all intents and purposes a monopoly with the Universal Music Group alone having 31% of the pie. Downstream Spotify does $5bln in sales and is therefore by textbook definitions another monopoly. Its 5x sales valuation is in line with unlisted Universal but there is always going to be friction between the two fat layers on intermediation in the music business. Those juicy layers between the artist and your ear are content ‘publishing’ (as opposed to music publishing which is a segment of this activity) and distribution.